January 10, 2013
Community College of Philadelphia, Philadelphia Industrial Development Corporation and Community First Fund Join $20 Million Partnership to Create Jobs and Stimulate Growth
Mayor Michael A. Nutter announced a partnership between the City of Philadelphia and the Goldman Sachs 10,000 Small Businesses initiative to help create jobs and economic growth by providing small businesses in the Philadelphia region with practical business education, business support services and access to capital.
Community College of Philadelphia will deliver the business education portion of the program, and Philadelphia Industrial Development Corporation (PIDC) and Community First Fund will originate loans to small businesses. Goldman Sachs and the Goldman Sachs Foundation are committing $20 million to the program in the greater Philadelphia area.
“I am very excited about the launch of the Goldman Sachs 10,000 Small Businesses program in Philadelphia,” said Mayor Nutter. “This program is the latest in a series of economic development initiatives to help businesses start, stay and grow in this city. Small business owners will be able to take advantage of new capital and support services that will aid growth. I want to thank Goldman Sachs for choosing to invest in Philadelphia and all of the partner organizations making this initiative possible.”
Goldman Sachs 10,000 Small Businesses is a $500 million program that will unlock the growth and job creation potential of 10,000 small businesses across the United States through greater access to business education, financial capital and business support services. The program is based on the broadly held view of leading experts that greater access to this combination of education, capital and support services best addresses barriers to growth for small businesses. The program is currently operating in Chicago, Cleveland, Houston, Long Beach, Los Angeles, New Orleans, New York and Salt Lake City and will continue to expand to communities across the country.
“10,000 Small Businesses is a good fit for Philadelphia because of the city’s strong local leadership, engaged partners and economic need in the small business sector,” said John F.W. Rogers, Executive Vice President of Goldman Sachs and the firm’s chief of staff. “We are pleased to work with our partners to help create jobs and drive growth that will ultimately benefit the economy of the greater Philadelphia area.”
“When small businesses grow and create jobs, the effects are felt throughout the community,” said U.S. Representative Chaka Fattah of the 2nd district of Pennsylvania. “I am pleased that the Goldman Sachs 10,000 Small Businesses program is coming to Philadelphia, and I look forward to seeing the program’s success positively influence the broader economy both in Philadelphia and in Pennsylvania.”
“Small businesses are the backbone of our community, and their growth will help the city and the state thrive,” said U.S. Representative Patrick Meehan of the 7th district of Pennsylvania. “I appreciate Goldman Sachs for making this investment in the greater Philadelphia region and all of the local partners for their work to help small businesses grow.”
Community College of Philadelphia will deliver the education portion of the program and will work with partners and local organizations to encourage small businesses to apply for the education and/or capital program components and to provide technical assistance to program participants. The Greater Philadelphia Chamber of Commerce, the Greater Philadelphia Hispanic Chamber of Commerce and the Urban League o Philadelphia will be key partners in helping with the recruitment of small business owners and entrepreneurs in Philadelphia and providing outreach and business support services.
“Philadelphia is a city of vibrant neighborhoods, where small companies and firms serve as an important economic engine,” said Community College of Philadelphia President Stephen M. Curtis. “Through the new partnership with Goldman Sachs 10,000 Small Businesses, the College will strengthen this sector and assist the legions of small companies and budding entrepreneurs. Since small businesses today employ half of all private sector workers, they are a strategic partner for us as well as a potential employer for students. The 10,000 Small Businesses program is a natural extension of the support services, customized training, and workshops already provided through our Corporate Solutions team and the Small Business Center for Education, Growth and Training.”
PIDC and Community First Fund will originate loans to small businesses. PIDC, a nonprofit, public-private partnership between the City of Philadelphia and the Greater Philadelphia Chamber of Commerce, targets the city of Philadelphia. Community First Fund’s target market consists of 13 counties in central Pennsylvania. The bulk of Community First Fund’s lending is focused on the cities of Reading, Lancaster,York and Harrisburg.
“PIDC is proud to partner with Goldman Sachs to bring the 10,000 Small Businesses initiative to Philadelphia,” said PIDC President John Grady. “This initiative is another great example of the partnership between the public and private sectors which PIDC embodies as a partnership between the City of Philadelphia and the Greater Philadelphia Chamber of Commerce. With over 50 years of experience in small business lending throughout all of Philadelphia’s neighborhoods, PIDC will use this new and much needed financial capital to continue helping small businesses in the city to grow and succeed.”
“The loan capital provided through this partnership with Goldman Sachs 10,000 Small Businesses will allow us to offer more loans across our entire multi-county region, especially for growth-oriented businesses working in our downtowns and neighborhoods,” said Community First Fund President and CEO Daniel Betancourt. “This loan fund investment is the largest in our 20-year history. We are excited that this program will support our existing clients and new borrowers, especially businesses owned by low income individuals, Persons of Color and women, with loans averaging $200,000, as well as providing access to valuable business education resources.”
Goldman Sachs opened its Philadelphia office in 1920. Over this period of time, the office has supported the Equities Division, Fixed Income Division and Investment Management Division. Today, the office is a Private Wealth Management Office with a team of more than 60 employees. Since 2010, Goldman Sachs Gives, the firm’s donor-advised fund, has made over $9 million in grants to Philadelphia area universities, charities and nonprofits, and in 2012 through the firm’s Community TeamWorks program, 82 volunteers contributed over 500 volunteer hours to Philadelphia-area nonprofits.
The Goldman Sachs 10,000 Small Businesses initiative will offer:
. Business and Management Education: Small business owners will have access to a practical business education delivered in partnership with Community College of Philadelphia, the largest public institution of higher education in the City. Small business owners will develop a business growth plan to help them increase revenues and hire new employees. Classes are free to business owners accepted through a competitive application process.
. Access to Capital: Goldman Sachs is committing $15 million of lending capital to Philadelphia and central Pennsylvania small businesses. The loans will be originated by local community-based partners, PIDC and Community First Fund.
. Business Support Services: Business advice, technical assistance and networking will be offered to participating small business owners through partnerships with Community College of Philadelphia, community-based partners and national business organizations, as well as the people of Goldman Sachs.
The program will begin in May 2013. Applications for the education component of the program are being accepted, effective immediately, and can be downloaded at www.ccp.edu/10KSB. Please contact PIDC and Community First Fund directly for information about the lending application process.