Through its 10,000 Small Businesses education program, investment firm Goldman Sachs has announced that it will pour $100 million into rural communities across the country to support job creation, business training, and economic growth.
The $100 million commitment will provide comprehensive support to rural small business owners and includes $75 million to community development financial institutions — starting first with a partnership with Dakota Business Lending — to provide loans to small businesses, $15mm to fund the 10,000 Small Businesses education program at local community colleges and $10mm in access to capital capacity-building grants.
The initiative, first launching in North Dakota and Arkansas, is an extension of the 10,000 Small Businesses program, which has served over 14,000 businesses across the country for more than a decade by providing access to education and capital. Survey data found that 74 percent of rural small businesses have grown revenues and 72 percent have expanded their workforce as a result of this program.
The initiative is intended reach rural small business owners in 20 states in the next five years.
While rural small businesses drive job creation and community engagement, the new survey found that they are often overlooked. Eighty-nine percent of rural small businesses support local organizations and causes, yet very few rural small businesses believe that they receive a fair amount of public and private sector resources, 14 percent and 7 percent respectively. Furthermore, these businesses are facing a growing workforce shortage, with 68 percent reporting that attracting workers to live and work in their communities is a challenge (compared to 46 percent non-rural). The new data shows that these headwinds are intensified by the lack of child care, health care and other quality of life services in rural America.
The initiative was launched during a special event at the 10,000 Small Businesses academic partner in North Dakota, Bismarck State College, attended by Gov. Doug Burgum, U.S. Sen. John Hoeven, Rep. Kelly Armstrong, Goldman Sachs Chairman and CEO David Solomon, Goldman Sachs Global Head of Corporate Engagement Asahi Pompey, and numerous 10,000 Small Businesses participants and community stakeholders.
“Small businesses are critical to the health of the U.S. economy, and this investment by Goldman Sachs will help train and support our next generation of risk takers and job creators in North Dakota,” Burgum said. “As our administration continues to focus on growing and diversifying the economy, we are grateful to Goldman Sachs for bringing its 10,000 Small Businesses program to North Dakota to support our small businesses and entrepreneurs.”
