Philadelphia may be anchored by "eds and meds," but our small businesses -- web design firms, equipment manufacturers, eateries and shops -- help keep us afloat. According to the Sustainable Business Network's Taking Care of Business 2011 report, of the city's 90,000 businesses, 98 percent report less than 50 employees.
Some of those businesses will soon be getting a boost: Philadelphia was recently chosen for the Goldman Sachs 10,000 Business Initiative
which will provide up to $10 million in small business loans administered through the Philadelphia Industrial Development Corporation (PIDC).
PIDC can serve a broader lending market than a traditional bank. According to Anne Nevins, Senior Vice President of Market Development for PIDC, promising businesses are sometimes held back by issues with credit or collateral. They may also be changing direction and appear risky to financial institutions. "We want to serve those businesses that are established and ready for a growth plan but for whatever reason can’t access the capital," says Nevins.
PIDC expects to serve several businesses in the manufacturing and professional service sectors needing $50,000 to $750,000 for new equipment, property, and working capital. They also identify restaurants, retail stores and revenue-earning nonprofits as potential benefactors. Nevins expects many applicants to be referred to PIDC from partner banks.
In total, PIDC expects to underwrite approximately fifty loans averaging $200,000, giving priority to businesses located in low to moderate income neighborhoods or those that employ lower to moderate income residents. Lancaster-based Community First Fund will provide up to $5 million in similar loans to 13 counties in southeastern Pennsylvania. Goldman Sachs is also funding financial and operational education offered by Philadelphia Community College
and support services through partner community groups for loan recipients.
Since launching in Spring 2010, over 1,000 businesses in eleven cities have completed the program. Roughly 70 percent report increased revenues and 50 percent have created new jobs.
Anne Nevins, Philadelphia Industrial Development Corporation