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Goldman Sachs Launches 10,000 Small Businesses Fellows Program

Innovative Fellows Program Coincides with Kick Off to National Small Business Week

Program Creates Paid Internship Opportunities for Historically Underrepresented Community College Students & Addresses the Skills Gap Facing Small Businesses During the Pandemic

Initiative to Begin Across Four Pilot Markets in New York City, Dallas, Cleveland and Baltimore

NEW YORK–(BUSINESS WIRE)–Goldman Sachs today launched a new workforce development program, 10,000 Small Businesses Fellows. The program, which kicks off during National Small Business Week, aims to create career pathways for students from community colleges and address the growing skills gap facing small businesses by facilitating hands-on internship opportunities. The program will begin in New York, Dallas, Cleveland, and Baltimore and create more than 250 work opportunities for college students in their fields of interest and small businesses. The semester-long paid internships will be fully funded by the Goldman Sachs Foundation.

The program’s investment in workforce development is critical to the nation’s economic recovery, addressing longstanding obstacles that have hindered the success of small business owners and community college students alike. 10,000 Small Businesses Fellows connects pandemic-stricken small businesses with a steady workforce pipeline while relieving the financial burden of recruiting new talent. Participants will have access to a national network of 10,000 Small Businesses alumni, professionals and Goldman Sachs experts that will set them on a path towards success.

Goldman Sachs 10,000 Small Businesses Fellows is in partnership with the following colleges and universities:

  • Dallas College
  • LaGuardia Community College
  • Cuyahoga Community College
  • Community College of Baltimore County
  • Morgan State University

David Solomon, Chairman and CEO of Goldman Sachs, said, “Today’s launch is the product of many months of listening and learning from small business leaders. We’ve heard how entrepreneurs are struggling to find the talent they need, and our platform is perfectly designed to connect them with promising students. We’re excited to see where this new program leads, as our 10,000 Small Businesses alumni continue to enhance our country’s economic vitality.”

Asahi Pompey, Global Head of Corporate Engagement and President of the Goldman Sachs Foundation, said, “The right internship can have a big impact on a student’s career path. 10,000 Small Businesses Fellows gives students a front row seat to entrepreneurship by coming into a small business and learning from some of our most successful alumni. They will learn the business but they will also witness the passion.”

Small businesses are economic engines, employing nearly half of America’s workforce and representing over 99 percent of employer firms.1 Yet hiring for essential roles remains a challenge, especially in the wake of the pandemic’s disproportionate impact on small businesses. According to a recent Goldman Sachs 10,000 Small Businesses survey, roles that are fundamental to business recovery are the highest in demand and yet the hardest to fill. Over 75 percent of small business owners said that sales and marketing roles were very important for recovery and growth, yet nearly 50 percent of small businesses report that these fundamental roles were the most difficult to hire for, with too few applicants having the rights skills.2

The 10,000 Small Businesses Fellows program helps address small businesses’ workforce needs crucial to growth by deepening the commitment to historically underrepresented community college students. This is done by matching practical skill development consistent with the fellow’s field of study to work projects that drive business growth for small business owners.

Fellows is an extension of Goldman Sachs 10,000 Small Businesses, which has invested $750 million to help small businesses across the U.S. create jobs and economic growth through education, support services and access to capital. Over the past 10 years, over 10,000 small businesses have been given entrepreneurial resources and developed a robust alumni base, who have created jobs, contributed to their local economies, and grown as entrepreneurs. On average, 67 percent of 10,000 Small Businesses graduates grow revenues, and 47 percent create new jobs just six months after graduating.

To learn more about Goldman Sachs 10,000 Small Businesses Fellows, visit 10ksbfellows.com.

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1 https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf
2 https://www.goldmansachs.com/citizenship/10000-small-businesses/US/infographics/the-fundamental-economy/index.html

Contacts

Media:
Abbey Collins, Goldman Sachs

[email protected]
Tel: +1 212-902-5400

New Goldman Sachs and Bipartisan Policy Center Report Shows Action Needed to Increase Small Businesses’ Access to Capital

As Paycheck Protection Program funds end, small businesses need more capital; Black-owned small businesses face larger hurdles than their white peers in accessing capital

NEW YORK–(BUSINESS WIRE)–A new report released today by Goldman Sachs 10,000 Small Businesses Voices in conjunction with the Bipartisan Policy Center shows the strain small business owners across the country are feeling as federal Paycheck Protection Program (PPP) funding is depleted. The report offers urgently needed policy solutions to put main street businesses back on the road to recovery.

In June, 82% of small business owners in a Goldman Sachs 10,000 Small Businesses Voices survey said their PPP funds would run out by the end of July. Yet just 24% said they were confident they could maintain payroll after depletion of PPP funds. Many small businesses say they are in a precarious position: emergency assistance is dwindling, and debt needs to be repaid—yet revenues have not fully recovered. For those seeking new sources of credit, pandemic disruptions are hindering their ability to secure financing.

The report also highlights a troubling fact: Black-owned businesses have significantly more difficulty accessing capital than their white peers. While PPP was broadly effective in sustaining employment at small businesses, its design reflected underlying disparities in access to finance. Challenges faced by Black small business owners include:

  • Black-owned businesses that are low credit risks are half as likely as white-owned firms to receive all the financing they seek, found a 2021 Federal Reserve Banks Small Business Credit Survey.
  • And white-owned businesses are twice as likely to receive all financing sought even when they are medium/high credit risk.
  • Research also finds racial differences in the decision to apply. Black small business owners with high credit scores are more than twice as likely to report a fear of denial than white founders with below median credit.

“As July comes to a close, small businesses across America face a grim reality: their Paycheck Protection Program funding is running dry, but our economy hasn’t fully recovered, the cost of doing business is increasing and their debts are coming due,” said Joe Wall, national director of the Goldman Sachs 10,000 Small Business Voices program. “Together with the Bipartisan Policy Center, our policy recommendations will help ensure a main street recovery continues.”

Policy actions recommended in the report include:

  • Create a long-term, low-interest loan guarantee program to provide flexible, patient credit to allow small businesses to rebuild balance sheets as they restore revenues.
  • Direct the Small Business Administration (SBA) to re-evaluate policies regarding financial performance in previous years to account for the impact of 2020 on small business balance sheets.
  • Make SBA subordination agreements as easy as possible regarding Economic Injury Disaster Loans (EIDL).
  • Consider actions that will expand the lender base in government guarantee programs.
  • Strengthen the capacity of CDFIs to distribute more small business credit in their target communities.
  • Prioritize small business financing as federal, state, and local governments distribute American Rescue Plan relief funds.

“Many American small businesses are still struggling to recover from the pandemic. Federal relief programs were crucial in helping them stay afloat,” said Dane Stangler, Director of Strategic Initiatives at the Bipartisan Policy Center. “Now, new actions are needed to help expand access to the credit they will need to invest and create jobs for their communities.”

The full report with detailed policy recommendations for increasing small business access to capital can be found here.

ABOUT 10,000 SMALL BUSINESSES VOICES

Goldman Sachs 10,000 Small Businesses Voices is an initiative for program participants to organize and advocate for policies that matter to them. It builds on Goldman Sachs 10,000 Small Businesses, which over the past decade has provided access to education, capital, and support services to more than 10,000 small business owners across all 50 states, Puerto Rico, and Washington D.C.

Contacts

Abbey Collins, Goldman Sachs, 212-902-5400

New Goldman Sachs and Bipartisan Policy Center Report Reveals Systemic Roadblocks for Small Businesses in Federal Contracting Process

The report reveals that the women-owned small business goal has only been met twice since 1994 and that the HUBZone goal has never been met

NEW YORK–(BUSINESS WIRE)–In partnership with the Bipartisan Policy Center, the Goldman Sachs 10,000 Small Businesses Voices program released a new report detailing the systemic barriers small businesses face during the federal procurement process. The report offers policy recommendations that Congress should consider including in an infrastructure package or other legislation to reform the system.

The report revealed that, over the last 10 years, there has been a 38% decline in the number of small businesses participating as federal contractors. Even more dramatically, the number of small businesses entering the procurement marketplace as new entrants declined by 79% from 2005 to 2019. Goldman Sachs 10,000 Small Businesses Voices found that 88% of small business owners support changes to the federal procurement process.

Furthermore, while federal agencies have met annual goals of spending 23% of procurement dollars with small businesses for seven consecutive years, the government has generally failed to meet procurement goals for women-owned small businesses and small businesses located in historically underutilized business zones. Since 1994, the federal government has only met its goal of awarding 5% of contracts to women-owned small businesses twice and it has never met the 3% HUBZone goal.

“It’s deeply troubling that the federal government has failed to meet its own goals for small business contracts over the last 20 years,” said Joe Wall, director of the Goldman Sachs 10,000 Small Businesses Voices program. “Our report makes clear that significant reforms are needed to ensure the federal contracting process gives small businesses a level playing field to compete and succeed.”

“The Bipartisan Policy Center is proud to partner with the Goldman Sachs 10,000 Small Businesses Voices community to raise awareness about this important issue that impacts small businesses and our economy,” said Dane Stangler, Director of Strategic Initiatives at the Bipartisan Policy Center. “Policy action by Congress and the Administration to reform federal procurement can increase access for small business and strengthen the American industrial base.”

The new report also outlines a number of different policy priorities that can promote greater small business participation in federal contracting, including: expand the breadth of small business participation, increase diversity, and reduce entry barriers; enhance assistance for small businesses to increase competition; improve transparency, accountability, and oversight; and modernize the 8(a) program to streamline the certification process at the beginning and for annual renewal.

The full report with detailed policy recommendations for procurement reform can be found here.

ABOUT 10,000 SMALL BUSINESSES VOICES

Goldman Sachs 10,000 Small Businesses Voices is an initiative for program participants to organize and advocate for policies that matter to them. It builds on Goldman Sachs 10,000 Small Businesses, which over the past decade has provided access to education, capital, and support services to more than 10,000 small business owners across all 50 states, Puerto Rico, and Washington D.C.

Contacts

Patrick Scanlan

Goldman Sachs & Co.

212-902-5400