Goldman Sachs Commits $300 Million to Support Communities and Small Business
*Small Business Stimulus Package of $250 Million in Emergency Loans
*$25 Million in Grants to Community Development Financial Institutions and other Mission-Driven Lenders
*$25 Million COVID-19 Relief Fund to Support Hardest Hit Communities
The Goldman Sachs Group, Inc. yesterday announced it will deliver $300 million across two separate initiatives to help small businesses and communities around the world navigate the current health and economic crisis.
Goldman Sachs has committed: $275 million to create a Small Business Stimulus Package, including $250 million to provide emergency loans to small businesses across the country;$25 million in grants to Community Development Financial Institutions (CDFIs) and other mission-driven lenders to ensure they have the necessary capacity to underwrite and deliver loans to small businesses as soon as possible, and $25 million as part of the Goldman Sachs COVID-19 Relief Fund to support communities in most urgent need globally, with the firm contributing to match employee donations up to an additional $5 million.
“COVID-19 has created an extraordinary global health and economic crisis and the urgency and scope of our actions must reflect this reality,” said David M. Solomon, Chairman and Chief Executive Officer. “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.”
Mr. Solomon continued, “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.”
Small Business Stimulus Package
Emergency Loans
Building on Goldman Sachs’ decade of supporting small businesses through 10,000 Women and 10,000 Small Businesses, 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.
A recent 10,000 Small Businesses survey of over 1,500 program participants found small businesses face tremendous uncertainty and require immediate support: Ninety-six percent said have been impacted by COVID-19; Seventy percent said loans at reduced interest rates would help their business, and; Fifty-one percent said their business will only be able to continue to operate for 0-3 months.
Goldman Sachs has committed $250 million in capital to fund low-interest loans to ensure these small businesses have the resources they need to fund their operations, weather the current crisis and meet their commitments to their landlords, suppliers, and employees.
The Small Business Stimulus Package has already allocated funds in conjunction with two public-private partnerships with the cities of New York and Chicago, together with several corporate and non-profit partners.
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, to help them navigate these challenging times.
Goldman Sachs Foundation will provide $25 million in grants to CDFI partners and other mission-driven lenders to increase their capacity, hire additional 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 and their critical mission.
Relief Fund
The Goldman Sachs COVID-19 Relief Fund is a $25 million commitment funded by Goldman Sachs Gives. The Fund follows the $1 million donated to the CDC Foundation, the Chinese Red Cross and the International Medical Corps earlier this year, and will distribute grants across five specific priorities: Assisting health providers on the front lines; Providing assistance to the most vulnerable populations; Providing economic relief for reduced and lost work;Supporting children and families in the wake of school closures and Supporting medical research.
Additionally, the firm has launched a Special Employee Matching Grants Program in response to COVID-19. Under this program, all non-partner employees of the firm who make a donation to any COVID-19 relief effort will have their donation matched dollar-for-dollar, up to $5 million in total. For donations that are $25 or less, the firm will match the donations three to one.
