In a recent development, Goldman Sachs, the Wall Street giant, announced plans to invest $100 million in rural communities across the United States. This move is part of its expanding efforts to strengthen small businesses that form the backbone of the American economy.
Goldman’s Push for Small Businesses
The company’s investment initiative will commence in North Dakota and Arkansas, eventually reaching small business owners across 20 states within five years. The ultimate goal? To provide “comprehensive support” to Main Street, the hub of economic activity in America.
Why This Matters Now
This strategic move by Goldman is critical, especially in the post-pandemic era characterized by high prices, wages, and interest rates that have been particularly harsh on Main Street. Small businesses, which contribute to 44% of America’s economic activity, have been grappling with the effects of pricier goods and services and worker shortages.
Additionally, the Federal Reserve’s interest rate hikes have hit smaller banks the hardest, affecting their ability to lend to small businesses. Goldman’s investment is a welcome relief for rural small businesses, often overlooked in public and private financing.
In a recent statement, Goldman’s Chairman and CEO David Solomon expressed his enthusiasm for this initiative: “Small businesses are engines of economic growth in our country, and that’s especially true in our rural communities. I’m excited to expand our program to provide more entrepreneurs with the training, tools, and access to capital they need to create more jobs and drive our economy forward.”
Not Alone in the Mission
Goldman Sachs isn’t the only name in the corporate world striving to fortify Main Street. Steve Case, the founder of AOL, has embarked on a similar path with Revolution Ventures, providing venture capital to overlooked areas to diversify financial support for innovative ideas.