The Goldman Sachs Group, Inc. announced the launch of a $500m initiative aimed to support 10,000 small businesses across the United States to free thier growth and job-creation potential through access to business education, mentors and networks, and financial capital.
The program “10,000 Small Businesses” include the following actions:
– Business and Management Education: Small Business entrepreneurs will receive practical business education delivered through partnerships between local community colleges, universities and other institutions. The initiative will contribute $200m to these partners to provide scholarships to underserved small business owners and build educational capacity.
– Mentoring and Networking: Advice, technical assistance, and networking will be offered to participating small business owners through partnerships with national and local business organizations, as well as the people of Goldman Sachs.
– Access to Capital: Goldman Sachs will invest $300m through a combination of lending and philanthropic support to Community Development Financial Institutions (CDFIs). The investment will increase the amount of growth capital available to small businesses in underserved communities and expand the capacity of the CDFIs to deliver technical assistance to small businesses. The initiative will provide technical assistance to graduates of the program to help them access other sources of capital.
– Advisory Council: 10,000 Small Businesses will be guided by an Advisory Council co-chaired by CEO Lloyd C. Blankfein, Warren Buffett, and Dr. Michael Porter of Harvard Business School. The Advisory Council will assist in the development, execution and evaluation of the program.
The first community college to participate will be LaGuardia Community College in Queens, New York, which houses a Small Business Development Center. Classes will begin in the spring of 2010.
The first CDFI who will be receiving financing will be Seedco Financial Services, Inc., based in New York City. Loans to underserved businesses in the New York area are expected to commence in early 2010.
10,000 Small Businesses, which has been in development for nearly a year, is a five-year program modeled on the Goldman Sachs 10,000 Women initiative, which creates partnerships between academic institutions and non-profit entities to provide a business and management education to women around the world.
10,000 Women is currently operating in 18 countries, where it is helping women entrepreneurs create jobs and growth in their communities.