Goldman Sachs and the LiftFund, along with other community development financial institutions (CDFIs), are partnering to provide $50 million in loans to small businesses in Texas impacted by COVID-19, Governor Greg Abbott announced Monday.
These loans, made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP), will primarily be used for payroll so that employees can continue to receive paychecks and small businesses can retain their employees. The loans, part of the Goldman Sachs’ multi-state program, 10,000 Small Businesses, may be partially or wholly forgiven, the governor announced.
Business owners can apply for a PPP loan and find more information at LiftFund.com.
Goldman Sachs will provide the capital as part of its $550 million commitment to its multi-state COVID-19 relief, and LiftFund and other CDFIs, will administer the funding to qualified small businesses.
“Small businesses and their employees are at the heart of the Texas economy, and they need support during these difficult times,” Abbott said. “These loans will help us revitalize our economy and restore Texans’ livelihoods as we respond to COVID-19. I thank Goldman Sachs and the LiftFund for providing this lifeline to Texas small businesses and their employees by providing them with the support they need to overcome the challenges posed by COVID-19.”
Janie Barrera, president and CEO of LiftFund, and John Waldron, president and COO of investment bank Goldman Sachs, joined Abbott at the press conference.
Also joining the governor were Brent Reaves, owner of Smokey John’s Bar-B-Que in Dallas, Patricia and Clint Butler, owners of Coffeecionado Community Roasters in San Antonio, and Michele and Mitch Allen, owners of iRun Texas in San Antonio. The Butlers and Allens are among the first to benefit from the partnership, the governor said.
Abbott also gave an update on coronavirus statistics in Texas. Positive COVID-19 tests are down and under projections, he said, with hospitalizations in Texas seeing a downward trend.
Cornavirus-related deaths reached a three-day low, Abbott added. To date, there have been 286 coronavirus-related deaths and 2,259 recoveries from the virus. In order to keep these numbers down, Abbott said Texans need to continue to maintain social distancing guidelines and other precautions.
Abbott did not address any specifics related to reopening Texas businesses, but said he will lay out a plan later this week in conjunction with a new task force.
He warned that any plan to jump start the economy “won’t be everyone reopening all at once,” he said, preferring a phase-in approach that is implemented “slowly, strategically, and smartly.”
This article was first published by The Center Square.