Goldman Sachs has pledged $300m to support communities and small businesses across the globe to navigate the current coronavirus (Covid-19) crisis.
Out of $300m, Goldman Sachs has earmarked $275m for Small Business Stimulus Package and $25m the remaining for the Covid-19 Relief Fund.
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Small Business Stimulus Package
Under the stimulus package, $250m worth emergency loans will be provided to small businesses across the US.
The remaining $25m will be made available in grants to Community Development Financial Institutions (CDFIs) and other mission-driven lenders.
The funds have already been allocated to various partners across New York and Chicago.
Small businesses employ nearly 50% of America’s workforce, the company said in its press release.
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By GlobalDataRecently, a ‘10,000 small businesses’ survey was conducted with 1,500 program participants, of which, 96% of participants were impacted by Covid-19.
About 70% said low-cost loans would help their business, while 51% said their business will be able to operate for only 0-3 months.
Covid-19 Relief Fund
The Covid-19 relief fund will be used for helping front-line health workers, impacted populations, and economic relief due to job loss, and medical research.
Goldman Sachs chairman and CEO David Solomon said: “We are deploying our capital and expertise to help small businesses navigate the incredible burdens they face while ensuring that health providers and relief organisations have the funds they need to fulfil their missions.”
“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.”
The company will also donate an additional $5m to match its employee donations.
Banks around the world are taking similar measures to help people and businesses tackle the pandemic.
Recently, Starling launched a Covid-19 support scheme and Santander UK introduced support package for impacted customers.
South African Standard Bank extended its Covid-19 relief measures, while the Reserve Bank of India (RBI) initiated a host of measures to minimise the damage caused by the pandemic.
