Mayor Cantrell announced Friday, April 24 that Goldman Sachs has committed $50 million as part of its 10,000 Small Businesses initiative to loans for small businesses in New Orleans and across the south, in a partnership with Hope Enterprise Corporation, a leading community development financial institution (“CDFI”).
Applications are currently being accepted and can be found by visiting the Hope Enterprise Corporation website here.
“I want to thank Goldman Sachs, Hope Enterprise Corporation and our federal partners for working together to make this happen. Goldman Sachs recognizes the value of meeting people where they are and ensuring that the support provided from the federal government must get into the hands of the people who need them most and in a timely fashion,” said Mayor LaToya Cantrell. “Small businesses are the backbone of our City’s economy, and now we can help our entrepreneurs to continue fueling this recovery.”
These loans, made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP), are an option for small businesses and non-profits that have been unable to submit a PPP application through another lending institution.
“We are humbled by the leadership of Mayor Cantrell, as well as Congressman Cedric L. Richmond, by establishing this partnership to ensure that entrepreneurs across the region are not without help,” said David M. Solomon, Chairman and Chief Executive Officer of Goldman Sachs. “Small businesses are a cultural and economic force, where the impact they have on their communities is matched only by their resilience.”
Hope Enterprise Corporation will offer these loans directly to small business owners in New Orleans and across the south, who will be eligible for these loans to be partially or wholly forgiven if they maintain or rehire their workforce. The loans can be used for payroll costs, interest on mortgages, rent and utilities
“Now, more than ever, the public, business and nonprofit sectors must join together to ensure that everyone has the tools needed to support their families and communities” said Bill Bynum, CEO, Hope Enterprise Corporation. “The partnership between Goldman Sachs, the City of New Orleans and HOPE provides a critical financial lifeline to help businesses and their employees navigate the COVID-19 crisis.”
The $50 million small business loan fund builds on existing investments by Goldman Sachs that support small businesses in New Orleans through the 10,000 Small Businesses initiative, which helps small businesses grow and create jobs by providing them with greater access to education, financial capital and business-support services. To date, over 750 business owners in New Orleans have graduated from the program. Nationally, two-thirds of graduates of the program report revenue growth within six months and nearly half report job growth.
Goldman Sachs will provide the capital as part of its $550 million commitment to COVID-19 relief, which includes $500 million in capital to fund these loans, as well as a $25 million grant to support CDFIs nationally in this effort and $25 million in grants to first responders and other relief organizations.