Plus   Neg

Goldman Sachs Adds $250 Mln To Its Small Business Commitment

goldmansach 071619 15jun20 lt

Goldman Sachs Group Inc. said it is committing an additional $250 million to fund the federal government's Paycheck Protection Program loans intended to aid small businesses impacted by the coronavirus pandemic.

Goldman Sachs has now committed a total of $775 million to the federal aid program. The financial services giant said it has fully allocated its initial commitments of $500 million in capital as well as $25 million in grants to Community Development Financial Institutions or CDFIs and other mission-driven lenders.

The Paycheck Protection Program or the PPP is part of the federal government's $2.2 trillion CARES Act intended to help small businesses as they struggle to run their operations amid the coronavirus pandemic. Launched in April 2020, the PPP is overseen by the Small Business Administration or SBA.

Goldman Sachs said it will fund the PPP loans through CDFIs and other lenders. The bank is not an approved loan provider for small businesses in the U.S.

"We have surveyed our 10,000 Small Business alumni and it is clear Black- and Latinx-owned businesses have seen more significant damage, and that CDFIs and similar institutions can help address this problem and direct capital to these businesses most in need," said David Solomon, Chairman and Chief Executive Officer of Goldman Sachs.

In addition, Goldman Sachs will partner with the National Urban League - a civil rights organization, and the U.S. Hispanic Chamber of Commerce or USHCC to ensure that minority-owned businesses receive both capital and information.

These two organizations, among the earliest partners of the loan program, are well-positioned to provide technical support to the minority business owners applying for PPP loans, Goldman Sachs noted.

The USHCC promotes the economic growth and interests of more than 4.37 million Hispanic-owned businesses in the U.S. Combined, these businesses contribute over $700 billion to the American economy every year.

In May, Bank of America said it received loan approvals worth $24.9 billion for small businesses under the PPP. The bank added it will provide the needed relief funding to more than 265,500 small businesses, which were struggling due to the lockdowns following the worsening spread of the COVID-19 pandemic.

Wells Fargo said in April it is targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP, after seeing strong interest during the COVID-19 crisis.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT