Wall Street investment giant Goldman Sachs is venturing out from the friendly confines of Wall Street fund small businesses across rural America. The revered financial colossus on Sept. 22 announced a $100 million Investment in Rural Communities across the country to support job creation and economic growth. 

The new initiative, first launching in North Dakota and Arkansas, is an extension of Goldman Sachs’ successful 10,000 Small Businesses program, which has served over 14,000 businesses across the country for more than a decade by providing access to education and capital. The initiative will reach rural small business owners in 20 states in the next five years. The $100 million commitment will provide comprehensive support to rural small business owners and includes $75mm to community development financial institutions (CDFIs) – starting first with a partnership with Dakota Business Lending – to provide loans to small businesses, $15 million to fund the 10,000 Small Businesses education program at local community colleges and $10 million in access to capital capacity-building grants. 

Goldman Sachs 10,000 Small Businesses already has a proven track record of working with rural small business owners. New survey data released by the Wall Street investment firm found that 74% of rural small businesses have grown revenues and 72% have expanded their workforce as a result of this program. 

“Small businesses are engines of economic growth in our country and that’s especially true in our rural communities,” said Goldman Sachs Chairman and CEO David Solomon. “I’m excited to expand our 10,000 Small Businesses program to provide more entrepreneurs with the training, tools and access to capital they need to create more jobs and drive our economy forward.” Earlier during the COVID-19 pandemic, Goldman also committed $10 billion in direct investment capital and $100 million in philanthropic capital over the next decade to address the dual disproportionate gender and racial biases that Black women have faced for generations, which have only been exacerbated by the pandemic. That initiative, One Million Black Women, was named for and guided by the goal of impacting the lives of at least one million Black women by 2030. 

More than 50 organizations were selected from over 800 applicants based on their established efforts to deliver innovative and transformative solutions to narrow opportunity gaps faced by Black women. Each grantee will receive two years of general operating funding, ranging from $50,000-$250,000. A total of $10 million will be invested through the multi-year program. 

Through a series of 50 listening sessions with over 20,000 Black women, a lack of access to unrestricted, multi-year funding was cited as a persistent challenge facing nonprofit leaders. The Black Women Impact grants program is designed to directly address this need. “We have listened and learned that Black women-led nonprofits need access to general operating, multi-year funding to scale their nonprofit organizations,” said Asahi Pompey, president of the Goldman Sachs Foundation. “We were inspired by the work of these 50 dynamic leaders and are thrilled to deliver funding as they continue to build sustainable organizations, driving lasting change within their communities.” 

The latest initiative was first launched in early September during a special event at North Dakota’s Bismarck State College attended by Solomon, Gov. Doug Burgum, U.S. Senator John Hoeven, Congressman Kelly Armstrong, Solomon, Goldman Sachs Global Head of Corporate Engagement Asahi Pompey, and numerous 10,000 Small Businesses participants and community stakeholders.

 While rural small businesses drive job creation and community engagement, the new survey found that they are often overlooked. 89% of rural small businesses support local organizations and causes, yet very few rural small businesses believe that they receive a fair amount of public and private sector resources, 14% and 7% respectively. Furthermore, these businesses are facing a growing workforce shortage, with 68% reporting that attracting workers to live and work in their communities is a challenge (compared to 46% nonrural). The new data shows that these headwinds are intensified by the lack of childcare, health care and other quality of life services in rural America. 

Goldman Sachs said it is committed to reaching a diverse, representative group of small business owners across rural America, where small businesses power the economy. According to recent data from the Small Business Administration, small businesses operate nearly 85% of establishments and employ 54% of workers in rural communities. Through the expanded program, Goldman Sachs 10,000 Small Businesses will engage stakeholders, including retailers, farmers, ranchers, manufacturers and other business leaders on issues in their communities, creating lasting solutions for rural America