Small businesses are now playing an increasingly important role in driving the American economy, a fact that Goldman Sachs (NYSE:GS) acknowledges. This became evident after the investment banking firm along with its charitable arm pledged a sum of $10 million to help small businesses in the Ocean State, Rhode Island. By this Rhode Island becomes another state to be a recipient of funds under Goldman’s “10,000 Small Businesses” program.
Amount might increase further
Goldman Sachs has stated that it will increase the offered amount to Rhode Island if it turns out to be successful there. The state has currently 22,000 small businesses operating, which employ nearly 80% of the people there.
Goldman Sachs will collaborate with the Rhode Island School of Design and the Community College of Rhode Island, both of which will receive a $5 million grant from the company’s charitable arm. In addition to this, the company will loan out $5 million to BDC Capital, which itself is an active lender under the state’s Small Business Lending Program.
However, the company’s President and Chief Operating Officer, Gary D. Cohn, still stresses on participating in the classes funded for the program, which are set to start in September. The company’s 10,000 Small Business Program was launched back in 2009 and has provided financial backing to nearly 6,133 businesses in various states so far. The investment bank has pledged a sum of $300 million under the program while $200 million will be contributed by the Goldman Sachs Foundation. The bank has doled out loans worth $185 million so far.
The largest part of the bank’s share under this program, $28.5 million, has been invested in New York. The investment bank says that the program does not solely benefit small businesses, but the nation as a whole.