Update: The 10,000 Small Businesses initiative is about "jobs, jobs, jobs," according to Marc Morial, CEO of the National Urban League.
Morial spoke at an event promoting the program Tuesday morning in Detroit. Warren Buffett, Lloyd Blankfein, CEO of Goldman Sachs, Governor Rick Snyder, Mayor Dave Bing, Emergency Manager Kevyn Orr and Don Graves, President Obama's point man for Detroit, were also present, alongside other Michigan politicians.
The program is a "mini-MBA" according to Blankfein, made up of three parts: businesses and management education, access to capital, and business support services.
Businesses interested in receiving a chuck of the $15 million must first complete the education arm of the program managed by Macomb Community College, Oakland Community College and Wayne State University.
Interested businesses must apply for training by Jan. 6. The program begins in early March, according to Gov. Rick Snyder.
The Invest Detroit Foundation and Detroit Development Fund will determine which graduates are approved for loans.
Recipients will also receive business advice, technical assistance and networking through "community-based partners and national business organization, as well as the people of Goldman Sachs," according to a press release. -- L.A.D.
6:48 AM: Gov. Rick Snyder, Mayor Dave Bing, Goldman Sachs CEO Lloyd Blankfein, and investor Warren Buffett will hold a media event this morning to announce that Goldman Sachs -- a bank -- will loan up to $20 million to Detroit business ventures.
Detroit Free Press: Buffett said he signed on to help after being impressed by Goldman’s earlier 10,000 Women global initiative, launched in 2008 to support female entrepreneurs around the world. The 10,000 Small Businesses initiative was rolled out in New York City in 2010 and launched later in nine other metro regions — Chicago, Cleveland, Houston, Long Beach, Los Angeles, Miami, New Orleans, Philadelphia and Salt Lake City — before Detroit. Applicants may come from anywhere in southeast Michigan, but must be willing to travel to Detroit for the classes.
A more limited version, offering capital but not the educational or support services, is running in six states: Kentucky, Montana, Oregon, Tennessee, Virginia and Washington. Altogether about 1,700 businesses have participated in the program.
Goldman's $500M small business lending campaign, spread out over a number of years and locales, amounts to 5% of what taxpayers lent the company in 2008 to literally save itself from own foolish decisions.
A bank will finance businesses that, one supposes, said bank believes could make money. In other news, Ford will make cars today. --JTW
Earlier coverage: Detroit This Week Becomes Next Recipient Of Goldman Sachs Small Business Boosts, Nov. 23
