Goldman Sachs commits $100 million to help rural businesses raise capital and expand

Photo by Andrew Kelly, Reuters via ASBN

In a win for rural entrepreneurship, global investment leader Goldman Sachs has committed $100 million to help "rural small business owners raise capital and grow their enterprises" through its 10,000 Small Businesses initiative, reports Colin Velez of America's Small Business Network. "According to the Goldman Sachs website, the company plans to divide the new $100 million among three groups: community lenders funding rural small business owners will receive $75 million; community college courses hosted by the 10,000 Small Businesses organization will receive $15 million; local entrepreneurs will receive the remaining $10 million in the form of grants."

The rural initiative will launch in North Dakota and Arkansas.

The investment will seed entrepreneurship and business growth that addresses rural businesses' unique challenges and vital role in rural community economics and overall health. The release noted how a lack of capital prevents rural business owners from growing their businesses. It cites an "accompanying survey that found only 7% of rural entrepreneurs felt they received adequate support from non-government entities. Limited access to child care, healthcare and labor were also cited as obstacles to expansion," Velez writes. "Noting such individuals employ roughly 65% of their local workforces, the company argued that these conditions are also holding back economic growth."

Rural enterprises often struggle with investment dollars and are "naturally neglected by typical lenders and education institutions, as they represent a smaller portion of the national economy than competitors in more populous states," Velez reports. "If more entrepreneurs were to leverage private and government programs that prioritize small business growth in underserved areas, this could help reverse these tendencies and ultimately ensure wealth is distributed more evenly between different parts of the country."