The Goldman Sachs Group, Inc. (NYSE: GS) announced the launch of the greater Los Angeles 10,000 Small Businesses initiative, which will provides useful resources to support small business in growing and creating jobs.
To be realized throughout the Los Angeles metropolitan area, the initiative include the following actions:
Business and Management Education
Through this action, small business owners will have access to business education developed in partnership with national business schools such as the Los Angeles City College and The Long Beach Community College District. Business owners receiving free education will be selected through a competitive application process administered by the Initiative for a Competitive Inner City (ICIC), in partnership with City College and The Long Beach Community College District.
The initiative is also partnering with LACCD’s Los Angeles Southwest College to support the needs of small businesses, with a particular focus on minority and low-income business owners in the South Los Angeles region.
Access to Capital
Goldman Sachs will commit $20m of lending capital, in addition to philanthropic support to Community Development Financial Institutions (CDFIs) in Los Angeles County. 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 enhanced technical assistance to small businesses.
The first CDFI that will be receiving financing will be the Valley Economic Development Center.
Business Support Services
Participating small business owners will receive business advice, technical assistance, and networking through partnerships with the community colleges and national and local business organizations, as well as the people of Goldman Sachs.
The program targets owners of small businesses with limited financial resources, and with few opportunities to otherwise access a business education designed to enhance small business success.
Characteristics of business owners include:
– business revenues between $150,000 and $4 million in 2009;
– business in operation for at least two years;
– at least four employees;
– operations in economically underserved areas;
– a business model that could scale to create more jobs.
Similar selection criteria are used by CDFIs to select small businesses for financing.
The program will begin in Los Angeles in August, 2010. Interested small businesses should apply for the education part of the program directly through the local community colleges and CDFIs.
Site of the initiative: