Goldman Sachs to Help Small Businesses

December 1, 2009

Just when we thought small businesses were going to experience harder times than major retailers, Goldman Sachs comes to the rescue with a plan to educate and finance small businesses. Their impressive plan to funnel $500 million dollars to provide management education, mentoring, and access to capital to small businesses is the largest of its kind in history. Warren Buffet, who bailed out Goldman Sachs early in this economic crisis, will assist Goldman Sachs in providing theses resources to small businesses.

Major retailers have experienced a loss of funding due to CIT Bank having to eliminate their factoring loan program. Factoring loans were very popular around holiday time for financing Christmas inventory. Retailers now have to finance their own inventory.

Critics say that Goldman Sachs is using this opportunity to improve its image and bad reputation as a result of receiving bailout money and improving its financial position. It would help small businesses to know how to research grants and loans if they would like to take advantage of this opportunity to grow their businesses.

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CIT Working to Strengthen Management

August 14, 2009

Photo by Lisa Gagne

Photo by Lisa Gagne

As CIT was forced to pledge most of its assets to secure a $1 billion dollar note, the company has also agreed to “strengthen its management and risk oversight, submit a plan to raise capital and fix its loan loss accounting,” reported Colin Barr, Senior Writer for Fortune in his August 13, 2009 article.

This means CIT must review the salaries of top executives to insure that their high salaries are not causing the company’s financial failure. Colin Barr also note that CEO Jeff Peek “who has made $36 million since 2004 for leading the company to the brink of bankruptcy” signed the agreement with the FDIC.

In view of the securing of financing for CIT, there are still questions as to whether CIT will be able to continue, considering the fact that CIT has made its money by “borrowing money at low rates and lending it out at higher rates.”

Retailers now have money for Christmas inventory, but some of the retailers who need this money are at risk of bankruptcy, themselves.