Goldman Sachs launches $500 million small business initiative to tap jobs, growth potential

Goldman Sachs launches small business initiative

NEW YORK — Goldman Sachs Group Inc. said Tuesday it is launching a $500 million initiative called “10,000 Small Businesses” to help employers overcome financial and education barriers that can limit growth and jobs creation.

The nationwide initiative includes a commitment by Goldman Sachs to invest $300 million through a combination of lending and philanthropic support. The money will be directed to community development financial institutions to increase capital and technical assistance available to small businesses in underserved communities.

Goldman Sachs also said the program will contribute $200 million to community colleges, universities and other institutions to provide scholarships to small business owners, and to expand education capacity.

In addition, small businesses will get advice, technical assistance and professional networking opportunities through partnerships with national and local business organizations.

An advisory council co-chaired by Goldman Sachs CEO Lloyd Blankfein will oversee the initiative. Other co-chairs are legendary investor Warren Buffett and Harvard Business School Professor Michael Porter.

The first community college to participate will be LaGuardia Community College in New York City’s Queens borough, which houses a Small Business Development Center. The first community development financial institution to receive financing from Goldman Sachs will be New York-based Seedco Financial Services Inc.