Goldman Sachs has announced a $500 million initiative – called 10,000 Small Businesses – to spur growth and job creation potential for small businesses around the country. Billionaire Warren Buffett will partner with the bank on this project.
David Viniar, Goldman’s chief financial officer, recently told The New York Times the bank regrets mistakes made leading up to the financial crisis. He says the bank is now "very focused on the economic climate" and hopes their 10,000 Small Businesses plan demonstrates a commitment to financial responsibility.
Goldman Sachs and Buffett will invest $300 million in a combination of lending and charitable support. In addition, Goldman Sachs executives will partner with national and local business organizations to provide small businesses advice, technical assistance, and professional networking opportunities for small businesses in underserved communities.
Goldman Sachs believes this will fill a void that is essential for the success of small businesses and their communities. "Small business owners, particularly those operating in disadvantaged communities, often face challenges accessing mentoring, networking and expert advice. While support services in each of these areas exist, the field is highly fragmented."
Moreover, under 10,000 Small Businesses’ Practical Business and Management Curriculum plan, the bank will make a $200 million donation to community colleges to give grants to small business owners to further their education. They will also finance leading business schools’ contributions to national curriculum development, which can be tailored by community colleges to address the specific needs of local business owners.
The educative benefits of 10,000 Small Businesses will also be felt by blossoming entrepreneurs around the country. According to the Kauffman Foundation, many universities are currently trying to expand their entrepreneurship course offerings.
Whether through directly assisting existing small businesses of today or working towards the successful start of small businesses that could help with economic recovery tomorrow, Goldman Sachs and Buffett believe the initiative is a much needed investment.
"Our recovery is dependent on hard working small business owners across America who will create the jobs that America needs," Buffett said. "I’m proud to be a part of this innovative program."