Buffett and Goldman pump $500 million into small businesses

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If anything, the financial implosion has been a boon for Goldman Sachs (GS), which has posted record-breaking profits and bonuses. The turmoil has also been nice to billionaire investor, Warren Buffett, who is snapping up juicy deals.

Unfortunately, millions of Americans remain unemployed. What's more, small businesses continue to suffer, as sales are tough to grow and financing is almost impossible.

With this in mind, Buffett and Goldman have teamed up for something unique -- that is, to launch a $500 million program to promote small businesses in the U.S.

True, this sounds like a PR move. But the plan is still a big deal. In fact, I'd rather have $500 million come from Buffett and Goldman -- instead of the U.S. government.

Essentially, the plan will benefit 10,000 businesses through an advisory council that will be chaired by Goldman's CEO Lloyd Blankfein, Buffett and Harvard business guru, Michael Porter. There will be an assortment of services, such as education, networking, grants, community support and financing.

This is certainly a sound approach. After all, it's common problem that -- if even if a company gets financing -- there will be still difficulties if there is not a good plan. Hopefully, Buffett-Goldman will provide the necessary tools.

No doubt, small businesses are critical for the U.S. economy. They are a source of employment and innovation in our country. And they ultimately spur long-term growth.

So, if the Buffett-Goldman plan can light the fire of small businesses, it's definitely a much-needed thing.

Tom Taulli is the author of various books, including
The Complete M&A Handbook.

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Last updated: February 10, 2010: 03:05 AM

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