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Mayor Duggan Announces $15 Million Small Business Loan Fund with Goldman Sachs, Community Reinvestment Fund USA
- Funds will help pay for payroll costs, interest on mortgages, rent & utilities to help support Detroit businesses affected by COVID-19 crisis
- Link to application available at here
Mayor Mike Duggan and Goldman Sachs CEO David Solomon announced today that Goldman Sachs has committed $15 million as part of its 10,000 Small Businesses initiative to loans for small businesses in Detroit to help them through the COVID-19 crisis. The effort is in partnership with Community Reinvestment Fund (“CRF”), the largest non-profit, non-bank SBA 7(a) lender in the country.
Applications from Detroit companies are currently being accepted and can be found by visiting CRF’s website.
For general information about the SBA loan program, visit the SBA Help page.
“Detroit has long represented the uniquely American combination of resilience, hope and determination, and its small business owners are testaments to this spirit,” said David M. Solomon, Chairman and Chief Executive Officer of Goldman Sachs. “Thanks to Mayor Dugan, and Senator Peters and Senator Stabenow, Detroit businesses will have some relief from the burdens of this historic crisis.”
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.
Loans are forgivable
CRF will offer these loans directly to small business owners in Detroit, 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
Mayor Duggan thanked Goldman Sachs for its commitment to small businesses in Detroit.
“The first round of federal funding went very fast and difficult for small businesses to access,” said Mayor Duggan. “What Goldman Sachs and CRF are saying is that they will make $15 million in forgivable loans available to Detroit’s small businesses and then get themselves reimbursed later through the federal program. This will make a huge difference in the ability of our small business community access these funds quickly to weather the COVID-19 crisis.”
“Detroit’s economic renaissance has been an American success story, and we are committed to continuing that trajectory despite the COVID-19 outbreak,” said Keith Rachey, chief impact officer of CRF. “As a mission-based non-bank lender, CRF has its heritage in helping small businesses grow, hire and thrive. We are looking forward to being a part of this productive partnership that will undoubtedly help Detroit entrepreneurs.”
Detroit Small businesses should take action NOW
- If you have an existing banking relationship, contact your lender immediately to begin a PPP application.
- CRF is currently accepting applications from Detroit businesses here
- For general information about the SBA loan program, visit the SBA Help page.
Michigan Senators Debbie Stabenow and Gary Peters voiced their support for this effort.
“Michigan small businesses are the backbone of our economy and we need to do everything we can to come together to support them,” said Senator Gary Peters. “This investment will help bring more needed relief to our small businesses in Detroit that urgently need support to stay afloat.”
“The COVID-19 outbreak has hurt small business owners across Michigan. Goldman Sachs 10,000 Small Businesses’ generous commitment will help business owners and our local economy during this crisis,” said Senator Stabenow. “This is part of an ongoing partnership between 10,000 Small Businesses and small business owners in Detroit that has helped local entrepreneurs expand and create new jobs over the years.”
This capital commitment builds on existing investments by Goldman Sachs that support small businesses in Detroit 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 550 business owners in Detroit for 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.
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.