Goldman, Buffett Establish $500 Million Small-Business Program

bloomberg.com

21 points·rjett··4 comments

The program will contribute $200 million to local community colleges, universities and other institutions to provide small- business owners with practical business education. Goldman Sachs will invest $300 million through a combination of lending and philanthropic support to community development financial institutions.

I wonder how this will affect businesses? As a business owner, I could put to work a check much better than a subsidized community college class. Could $300M even put a dent in nationwide SB lending?

I am sure GS is far better than the gov't at allocating stimulus money, but will this really do anything - or is it just a PR move to shake off its $10B TARP funds, 12.9B from a should-have-been-bankrupt AIG, and the access to the FED discount window when it was allowed to turn into a bank holding company and get money at a ridiculous 0.50% interest rate.

This is quite interesting. If Goldman can borrow at 00.50%, what will it lend to small businesses at?

It's marketing, that's all. If Buffett is envolved, there's nothing "charitable" about it. He is in it for the profits, he doesn't do it any other way (except _after_ having earned profits, giving it away eventually). It's Goldman's chump change to advance their public image and to distract from their bonus payments and provide policy makers with an excuse as to why Goldman doesn't deserve that much scrutiny when it comes to their CDO's noone understands etc.

Edit: See what Goldman does with their "charitable foundation": http://blogs.reuters.com/felix-salmon/2009/11/12/the-goldman...

Trying to wash the stink off, by teaming up with the most honest man (not) on Wall Street, and throwing money at the "problem."

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