New York (PRESS RELEASE – November 27, 2009) — Seedco Financial Services, Inc., a financial services organization providing funding and resources to support economic and social development, today announced a five-year grant partnership with Goldman Sachs. Goldman Sachs’ Urban Investment Group will provide $20 million in financing for underserved small businesses through Seedco Financial’s newly established “NYC Small Business Support Initiative.” Seedco Financial will also receive philanthropic support from Goldman Sachs to fund capacity building and technical assistance. The program’s financing and technical support initiative for small businesses is expected to lead to job creation and retention.
“Critical to the success of small businesses is access to capital in addition to high-caliber professional advisory and technical services,” explained Lesia Bates Moss, president of Seedco Financial. “Our program is innovative in that it combines financing with the deep functional expertise of seasoned management consultants, financial, marketing, operational and technical professionals along with mentoring and coaching by successful corporate executives who provide strategic guidance to help small business owners navigate challenges.”
With the Goldman Sachs funding, Seedco Financial will initiate two programs to support small businesses. The organization will expand the scale and reach of its small business lending platform for businesses that operate in underserved, low-to-moderate income communities of New York City. This platform also helps minority- and women-owned business enterprises. The additional loan capital will enable Seedco Financial to also develop place-based, micro- targeting strategies in commercial and retail corridors which do not traditionally qualify as areas of economic distress, but where there is demonstrable need as well as a viable economic rationale for loan deployment.
“We are very excited to provide a significant injection of new capital into Seedco Financial, which is operating on the front lines of community development and creating real impact,” said Alicia Glen, head of the Goldman Sachs Urban Investment Group. “More than ever, we recognize the need to create innovative ways to address the distinct needs of underserved small businesses as part of our broader community revitalization efforts.”
Seedco Financial will introduce a new product, “Business Expansion Loans,” to provide critical funding for businesses with a three-year operating history, a minimum of $300,000 in annual revenues, at least five employees and an engaged management team. This program will focus on providing capital and resources for small businesses to expand sales and operating capacity in growth sectors such as clean technology and weatherization.
“Our small businesses are integral to our local and regional economies,” said Congressman Gregory Meeks. “This infusion of lending and operating resources will ensure that small businesses have access to financing and also professional expertise to recover from the recession and adjust to the new economic environment.”
About Seedco Financial
Seedco Financial Services, Inc. (Seedco Financial) is a national Community Development Financial Institution (CDFI) with more than $200 million in assets under management. Filling niche gaps along the continuum of credit from micro-enterprise to New Market Tax Credits, Seedco Financial seeks to stimulate economic development in communities that are underserved by traditional banking institutions by providing affordable capital, hands-on technical assistance and innovative solutions to small businesses, nonprofit organizations, CDFIs and real estate developers. Seedco Financial is a wholly-controlled subsidiary of Structured Employment Economic Development Corporation (Seedco), a national nonprofit intermediary that helps low-income people and communities move toward economic prosperity.
Learn more about Seedco Financial at www.seedcofinancial.org.
About the Goldman Sachs Urban Investment Group
Formed in 2000, The Goldman Sachs Urban Investment Group (UIG) deploys the firm’s capital though investments and loans to help transform distressed communities into sustainable and vibrant neighborhoods of choice and opportunity. By deepening our engagement in communities and strengthening relationships with the public and non-profit sectors, we strive to improve people’s lives and advance a comprehensive community development agenda. To learn more, visit gs.com/uig.
SOURCE Seedco Financial Services, Inc.