Rep. Clarke Applauds Small Business Initiative Announced by Warren Buffett and Goldman Sachs
Yesterday, Goldman Sachs announced that it was partnering with Warren Buffett to support small businesses in this challenging economic environment with a new initiative called 10,000 Small Businesses. The initiative will dedicate $500 million to lending, technical assistance, and education for small businesses. Community Development Financial Institutions (CDFI’s) will have access to $300 million in grants or investments to increase small business lending.
“This announcement is great news for small businesses. I am pleased that Warren Buffett and Goldman Sachs recognize the importance of small businesses to our economic health and recovery,” said Rep. Clarke. “I am even more pleased that they will be partnering with Community Development Financial Institutions to bolster lending to small business at a time when these loans are still at a trickle.”
The Community Development Financial Institutions Fund, housed at the U.S. Department of the Treasury, was created in 1994 to expand the capacity of financial institutions in areas that are underserved by traditional financial services providers. Institutions that are certified by the CDFI Fund may apply for financial and technical assistance. Since its inception, the CDFI Fund has awarded $1.11 billion to community development organizations and financial institutions.
“Partnering with CDFI’s is an excellent decision,” Clarke continued. “CDFI’s have proven their worth over time. They have demonstrated that they can raise $15 in non-federal funds for each $1 of federal investment. The CDFI program is one of the finest in the federal government for community and small business development and I am glad that Mr. Buffett and Goldman Sachs see this as well.”