Goldman Sachs has announced that the firm and Goldman Sachs Gives will donate $5m to Hurricane Sandy clean up and recovery efforts, and the firm will provide $5m in loans to small businesses impacted by Hurricane Sandy.
These small business funds will match the $5m in New York City funding for small businesses affected by the hurricane that was announced by Mayor Bloomberg earlier this week. Both the capital from Goldman Sachs, through its Urban Investment Group, and from the City will be made available through the New York Business Development Corporation (NYBDC), a non-bank lender which will then make the end-loans to the small businesses.
The funds will be loaned to businesses in Zone A and other areas where there have been power outages and severe flooding, and the funds are expected to flow to borrowers on an expedited basis, five to seven days after application. End loans will range from $5,000-$25,000 and will help small businesses with working capital, repairs and business interruption, among other things.
'Many small businesses in our communities have been devastated by this disaster, and fast access to capital will help them get back on their feet more quickly', said Lloyd Blankfein, Chairman and CEO of Goldman Sachs. 'This funding will reinforce our on-going initiative, 10,000 Small Businesses, which supports small business owners in the New York metro area and other cities across the country'.
The program is expected to be operational early next week.
In addition to financial contributions, Goldman Sachs employees will be volunteering with a number of area community groups to aid in clean up, food delivery and rebuilding in the coming weeks and months. The first volunteer projects will be conducted with New York Cares, Salvation Army and Team Rubicon to provide urgent volunteer assistance throughout the Tri-State area, with additional volunteer projects for relief and rebuilding efforts forthcoming.
Since 2001, the Goldman Sachs Urban Investment Group has committed $2.4bn of capital, taking a comprehensive approach to address the needs of underserved communities. Goldman Sachs has provided financing to create and preserve 12,500 housing units – 75% of which are affordable to low-, moderate- and middle-income families – as well as over 1,900,000 square feet of commercial space providing retail services for local residents, and 1,100,000 square feet of community space, supporting health care clinics, charter schools, and day care centers. A recognized leader in structuring public-private partnerships, Goldman Sachs has also led collaborations with state and local governments to advance important social programs including the New York Healthy Food and Healthy Communities fund and the first “Social Impact Bond” in the United States, which provides financing to reduce recidivism among young adults.
Goldman Sachs Gives is a donor-advised fund through which Goldman Sachs and its senior employees can recommend grants to qualified non-profit organizations globally. Established in 2007, Goldman Sachs Gives supports charities in communities around the world with a focus on benefiting underserved populations. Its grants support programs that build and stabilize communities, increase educational opportunities, honor service and veterans, and create jobs and economic growth.