- The Goldman Sachs Group recently announced it is delivering $300 million across two separate initiatives
The Goldman Sachs Group recently announced it is delivering $300 million across two separate initiatives for helping small businesses and communities around the world navigate the current health and economic crisis.
Goldman Sachs is deploying $275 million for creating a Small Business Stimulus Package, including $250 million to provide emergency loans to small businesses across the country and $25 million in grants to Community Development Financial Institutions (CDFIs) and other mission-driven lenders for ensuring they have the necessary capacity to underwrite and deliver loans to small businesses as soon as possible.
The other $25 million will be part of the Goldman Sachs COVID-19 Relief Fund for supporting communities in the most urgent need globally. And the firm will be contributing to match employee donations up to an additional $5 million.
The Small Business Stimulus Package will provide emergency loans to small businesses — which employ nearly half of the American workforce and serve a critical role in the economy. According to a recent 10,000 Small Businesses survey of over 1,500 program participants, small businesses face tremendous uncertainty and require immediate support: 96% percent said have been impacted by COVID-19, 70% said loans at reduced interest rates would help their business, and 51% said their business will only be able to continue to operate for 0-3 months.
The Small Business Stimulus Package has already allocated funds in conjunction with two public-private partnerships with the cities of New York and Chicago. And the firm is supporting its small business community globally through a rapid rollout of educational resources and business coaching to reach small businesses owners in the U.S. and U.K., as well as female entrepreneurs in emerging markets across the world.
The Goldman Sachs Foundation will provide $25 million in grants to CDFI partners and other mission-driven lenders to increase their capacity, hire more staff, and expand critical infrastructure. CDFIs — which have a proven history of lending to underserved businesses — need additional resources to meet the urgent capital needs of small businesses. This effort extends Goldman Sachs’ decade-long support of CDFIs.
The Goldman Sachs COVID-19 Relief Fund is a $25 million commitment funded by Goldman Sachs Gives. And The Fund follows the $1 million donated to the CDC Foundation, the Chinese Red Cross and the International Medical Corps earlier this year. And it will distribute grants across five specific priorities: 1.) Assisting health providers on the front lines; 2.) Providing assistance to the most vulnerable populations; 3.) Providing economic relief for reduced and lost work; 4.) Supporting children and families in the wake of school closures; 5.) Supporting medical research.
Key Quotes:
“COVID-19 has created an extraordinary global health and economic crisis and the urgency and scope of our actions must reflect this reality. We are deploying our capital and expertise to help small businesses navigate the incredible burdens they face, while ensuring that health providers and relief organizations have the funds they need to fulfill their missions.”
“We have worked hand-in-hand with entrepreneurs to support the growth of their businesses for over a decade, recognizing that they are foundational to our economy. These businesses are relied upon by a constituency far broader than their customers and clients, and we are taking immediate steps so that they may continue to support their employees, their families, and their communities. Our hope is that with immediate cash loans and the necessary stimulus to lending institutions, we can help provide the time these businesses need to weather this crisis.”
Goldman Sachs Chairman and Chief Executive Officer David M. Solomon
