PHILADELPHIA — Philadelphia Mayor Jim Kenney today announced a partnership with Goldman Sachs and Lendistry to provide $10 million in potentially forgivable SBA Paycheck Protection Program loans to help Philadelphia small businesses, including non-profit organizations, weather the economic impact of COVID-19. Building upon its 10,000 Small Businesses initiative, Goldman Sachs has committed the funding for loans for small businesses in the Philadelphia region, with a focus on urban marginalized communities, in a partnership with Lendistry, a leading community development financial institution (CDFI). Businesses can apply here.
“I’m grateful that, thanks to this partnership, Philadelphia’s small business owners will have more opportunities to secure vital funding needed to navigate this crisis and eventually rebound,” Mayor Kenney said. “We thank our partners at Goldman Sachs and Lendistry, as well as those in Congress, for this investment in our small businesses, which are the backbone of our city’s economy.”
Congressman Dwight Evans said, “As vice chair of the House Small Business Committee, I welcome this public-private partnership. It will take all hands on deck to get our community through this, and this is a good example of the type of working together that we need.”
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.
“Small businesses are suffering insurmountable losses during this time – and workers are paying the price,” Congresswoman Madeline Dean said. “I applaud Goldman Sachs’s commitment to assist these vital businesses in navigating this difficult time and get the resources they desperately need. As we work through this pandemic, we must ensure that small businesses and their workforce are at the center of this recovery.”
“Thanks to Mayor Kenney, along with Congressman Dwight Evans and Congresswoman Madeleine Dean, Goldman Sachs is able to express its support for the small business community in Philadelphia through this crucial emergency measure,” said David M. Solomon, Chairman and Chief Executive Officer of Goldman Sachs. “We brought our 10,000 Small Businesses program to Philadelphia in 2013 and have developed a deep appreciation for the entrepreneurial spirit of this city, which we are proud to help support with this fund.”
Lendistry will offer loans directly to small business owners in the Philadelphia metro region, 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.
“Knowing that small businesses are the backbone of our communities, a major focus of ours at Lendistry is continuously seeking out connections and partnerships to bring small businesses the support they need,” said Everett Sands, CEO of Lendistry. “We are excited to launch this partnership with Goldman Sachs and Mayor Kenney in the midst of unprecedented challenges facing small businesses.”
This capital commitment builds on existing investments by Goldman Sachs that support small businesses in Philadelphia 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, 565 Philadelphia business owners have graduated from the program since 2013. 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.
About Goldman Sachs:
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
About Lendistry:
Since 2014, Lendistry has provided economic opportunities and progressive growth for small business owners and their underserved communities as a source of financing and financial education.