Goldman Sachs said that an amount of $275m will be used for creating a Small Business Stimulus Package, of which $250m will be given for emergency loans to small businesses across the US
The Goldman Sachs Group said that it will help small businesses and communities with a commitment of $300m to help address the uncertain health and economic conditions.
The amount will be delivered across two separate initiatives, said the investment banking company. Out of this, $275m will be used for creating a Small Business Stimulus Package, with $250m to be given for emergency loans to small businesses across the US, which employ almost half of the workforce in the country.
The banking company said that the capital will be used for funding low-interest loans to ensure that the small businesses have the required resources for financing their operations, weather the prevailing crisis, and honour their commitments to their suppliers, landlords, employees.
The financial services group has allocated $25m from the Small Business Stimulus Package which will be issued in grants to community development financial institutions (CDFIs) and other mission-driven lenders. According to Goldman Sachs this amount will make sure that the recipients have the required capacity to underwrite and provide loans to small businesses as soon as possible.
Goldman Sachs chairman and CEO David Solomon said: “We have worked hand-in-hand with entrepreneurs to support the growth of their businesses for over a decade, recognizing that they are foundational to our economy.
“These businesses are relied upon by a constituency far broader than their customers and clients, and we are taking immediate steps so that they may continue to support their employees, their families, and their communities.
“Our hope is that with immediate cash loans and the necessary stimulus to lending institutions, we can help provide the time these businesses need to weather this crisis.”
Goldman Sachs pledges $25m for COVID-19 relied fund
The group has kept aside $25m for its COVID-19 relief fund for supporting communities in most urgent need across the world. The banking company said that it is contributing to match employee donations up to a further $5m.