New Initiative Supports Small Business Lending from CDFIs

NEW ORLEANS, LA – Hope Enterprise Corporation (HOPE) recently announced that it has been selected as the lending partner for the Goldman Sachs 10,000 Small Businesses initiative in the Greater New Orleans area. The partnership between the HOPE and Goldman Sachs will create jobs and stimulate economic growth by committing $20 million in capital for small business loans and subsidizing results-oriented business education for current small business owners. Program partners will include Delgado Community College and the Urban League of Greater New Orleans.

New Orleans Mayor Mitchell Landrieu unveiled the initiative on Monday. “I’m committed to creating the jobs of the future and getting our economy back on track,” Landrieu said. “This is why I am bringing Goldman Sachs 10,000 Small Business initiative to New Orleans to focus on the issue of growing small businesses and creating jobs. This City has been through a lot, we have a lot of work to do, and it’s not going to happen overnight, but together, with partners like Goldman Sachs, we will usher in a new era of prosperity for our City.”

“Small business growth is at the heart of the American and New Orleans’ economies,” said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs. “We are very pleased 10,000 Small Businesses will be working with our partners along the Gulf Coast to provide local business owners with the resources to help them grow and create jobs.”

Throughout the Greater New Orleans area, the 10,000 Small Businesses initiative will offer selected businesses:

  • Business and Management Education: Small business owners will have access to a practical business education developed in partnership with leading national business schools and delivered by Delgado Community College (DCC), the oldest and largest community college in Louisiana. As part of the program, small business owners will develop a business growth plan to help them increase their revenues and hire new employees. The education is free to accepted business owners who are selected through a competitive application process.
  • Access to Capital: Goldman Sachs is committing $20 million of lending capital as well as philanthropic support to the region through community development financial institutions (CDFIs) and similar institutions. HOPE, one of the nation’s leading CDFIs, is the first to participate. HOPE will also receive a grant to expand their capacity to deliver enhanced technical assistance to small businesses.
  • Business Support Services: Business advice, technical assistance, and networking will be offered to participating small business owners through partnerships with the community colleges and national and local business organizations, as well as the people of Goldman Sachs. The Urban League of Greater New Orleans will sponsor new business workshops and training, coordinated with DCC, on government contracts and bidding.

“Equipping small businesses with the tools they need to succeed has been central to HOPE’s mission since we opened our doors 15 years ago,” said HOPE CEO Bill Bynum. “One of the most important tools is access to capital. Another is technical expertise. By coupling properly structured financing with smart business assistance, the 10,000 Small Businesses Initiative will wire firms for success, and provide a major boost to our region’s economy.”

Dr. Ron Wright, Chancellor of Delgado said: “There couldn’t be a better time to launch a small business development initiative for the Greater New Orleans area. This program is perfectly aligned with Delgado’s role in developing potential and creating value for our community. The education that participants will receive will position them to grow their businesses and contribute even more to the burgeoning local economy.”

Program Background

10,000 Small Businesses is a $500 million initiative 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. It is based on the broadly held view of leading experts that a combination of education, capital, and support services best addresses the barriers to growth for small businesses. In addition to New Orleans, it is now operating in New York and the Greater Los Angeles area and will continue to expand to communities across the country.

Strategy and guidance is provided by the 10,000 Small Businesses Advisory Council, chaired by Lloyd Blankfein, Berkshire Hathaway CEO Warren Buffett and Harvard Business School Professor Dr. Michael Porter.

10,000 Small Businesses is modeled on the Goldman Sachs 10,000 Women initiative, which creates partnerships between academic institutions and non-profit entities to provide a business and management education to women around the world. 10,000 Women is currently operating in 20 countries, where it is helping women entrepreneurs create jobs and growth in their communities.

Who Should Apply

The program is designed for owners of small businesses with limited financial resources, and with few opportunities to otherwise access a business education designed to enhance small business success. Broad characteristics of business owners targeted to participate include, but are not limited to: ownership or co-ownership of a business; business revenues between $150,000 and $4 million in 2009; business in operation for at least two years; at least four employees; operations in economically underserved areas; and a business model that could scale to create more jobs.

Companies interested in applying for financing can complete an intake form or contact HOPE at [email protected] for more information.

Businesses interested in the scholarship program can apply at: http://www.dcc.edu/divisions/workforce/10ksb.

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