Goldman Sachs Provides $10 Million for Storm Recovery

Sandy’s Blackouts Leave 3.5 Million Customers Lacking Power
A fourth day of blackouts for about 3.5 million homes and businesses in the U.S. Northeast taxed the patience of city and state officials concerned that utilities are moving too slowly to repair the ravages of Hurricane Sandy. Photographer: Victor J. Blue/Bloomberg

Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets, will provide $5 million in loans to small businesses affected by Hurricane Sandy with the firm and its staff donating an equal amount for cleanup and recovery.

The loans match the $5 million that New York City is offering to small businesses in Zone A and other areas affected by flooding and power failures, the company said today in a statement on its website. Amounts ranging from $5,000 to $25,000 will be available within five to seven days after application.

“Many small businesses in our communities have been devastated by this disaster, and fast access to capital will help them get back on their feet more quickly,” Chief Executive Officer Lloyd C. Blankfein, 58, said in the statement.

The money from the city and Goldman Sachs’s Urban Investment Group will be available through the New York Business Development Corp., the company said. The program is expected to be running by Nov. 5, according to the statement.

The firm’s employees, who will be making donations through Goldman Sachs Gives, also will volunteer for cleanup, food delivery and rebuilding projects, the company said.

Goldman Sachs headquarters in Lower Manhattan and its building across the Hudson River in Jersey City, New Jersey, had “a little bit of flooding” as a result of the storm, Gary D. Cohn, the firm’s chief operating officer, said on Bloomberg Television’s “Market Makers with Erik Schatzker and Stephanie Ruhle” on Oct. 30.

“We clearly feel an obligation and a responsibility to the neighborhood and the people that live there,” said Cohn, 52.

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