U.S. Senator Katie Britt Celebrates Goldman Sachs’ Alabama Launch of Investment In Rural Communities
Launch includes $3 million commitment to CDFIs focused on Alabama small businesses
BIRMINGHAM, AL., September 6, 2024 – U.S. Senator Katie Britt (R-Ala.) today joined Goldman Sachs for the launch of its Investment in Rural Communities initiative in Alabama. The initiative, which initially launched in September 2023, helps rural entrepreneurs grow their businesses with results-oriented business training, access to capital, and personalized support services.
The investment is an extension of Goldman Sachs’ successful 10,000 Small Businesses program, which has served over 15,500 businesses across the country for more than a decade. Investment in Rural Communities plans to reach rural small business owners in 20 states over five years and has already helped enable job creation and growth as it launches in its fifth state, Alabama. New survey data released today found that following completion of the program, 60% of rural small business owners reported adding new jobs, 68% reported increased revenues, and 84% believe their business is more resilient.
“Fighting for hardworking families, small businesses, and local Main Streets across Alabama has always been a top priority for me,” said Senator Britt. “Today, small business owners are facing more challenges than ever before. This program empowers small businesses with additional tools and training to best position them for sustainable success and growth. As a daughter of rural Alabama, I am especially proud to see this focus on supporting rural small businesses in our great state.”
“As a proud product of a small business family, I am continually inspired by the achievements, commitment and community impact of our small business owners,” said John F.W. Rogers, Executive Vice President of Goldman Sachs. “Goldman Sachs stands with Alabama small businesses and is committed to equipping entrepreneurs across the state with the education and resources they need to support our country’s workforce and drive prosperity and growth.”
“We know small businesses are the heartbeat of their communities: creating jobs, driving growth and moving economies forward,” said Asahi Pompey, President of the Goldman Sachs Foundation. “Goldman Sachs is proud to support these entrepreneurs as they catalyze opportunity in Alabama.”
“Small businesses are the strongest economic engine in our country and the backbone of Alabama’s economy,” said U.S. Rep. Terri Sewell (D-AL). “I’m thrilled that Goldman Sachs is expanding 10,000 Small Businesses and I am excited to see the growth of our entrepreneurs when they are equipped with the additional resources, training, and tools they need to unlock their full potential.”
Small businesses are driving the economy in Alabama, accounting for 99.4% of businesses statewide and employing nearly half of Alabama’s workforce. Bringing Goldman Sachs’ leading business-education program and nearly 15 years of targeted experience in supporting small businesses to rural America will help enable Alabama small businesses to continue to unlock their full potential.
Goldman Sachs’ $100 million Investment in Rural Communities provides comprehensive support to rural small businesses owners. The investment includes $75 million to community development financial institutions (CDFIs) to provide loans to small businesses, $15 million in funding for the business education programs at local community colleges, and $10 million in access to capital capacity-building grants.
Through an established partnership with HOPE (Hope Enterprise Corporation / Hope Credit Union), Goldman Sachs will deploy $20 million of capital to small businesses in the rural south. As part of this facility, HOPE will commit $3 million to Alabama-serving CDFIs, including Communities Unlimited.
“Equipping small businesses with strong skills, information and financial services is critical to their success,” said Bill Bynum, CEO of HOPE. “We are proud to partner with additional Alabama-serving CDFIs and Goldman Sachs to advance entrepreneurial growth across the state.”
“While there are amazing things happening in Alabama’s cities and universities, the soul of Alabama is in its small towns and rural communities. This is where small businesses play a critical role in their local economies. 10,000 Small Businesses was instrumental in setting my business up for growth and success,” said Tim Aho, CEO and President of Aho Architects in Birmingham and graduate of 10,000 Small Businesses. “With the resources, support and network Goldman Sachs provides through 10,000 Small Businesses, I’m confident small businesses owners in Alabama are best-positioned to thrive, create jobs and drive our economy forward.”
Rural small business owners are the backbones of our towns and neighborhoods—almost 90% of them volunteer, over three-quarters report having a meaningful impact on the social well-being of their communities, and they are more likely to participate in local government than their non-rural counterparts. But they also face headwinds, particularly in recruiting and retaining employees.
Sixty-two percent of rural small business owners say attracting workers to their community is a challenge, compared to 41% of non-rural businesses. They also cite inflation, difficulty accessing basic services, and a lack of affordable housing as top concerns. Compounding the challenge, rural small businesses are at risk of falling behind on technology and exacerbating an existing digital divide: only 47% of rural small business owners reported that they use AI tools, compared to 57% of non-rural owners.
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