This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Goldman Lends a (Small) Helping Hand

CHICAGO ( TheStreet) -- Financial powerhouse Goldman Sachs (GS) operates in a completely different universe from the average small business.

For Goldman, 2009 is turning out to be a banner year with record profits. The company has already set aside almost $17 billion for employee compensation, which works out to an average bonus of $700,000 per worker.

Meanwhile, small businesses are struggling, and bonuses are nonexistent. There's only one arena where mom 'n' pop operations have an advantage over Goldman: public opinion. Small businesses are praised by Democrats and Republicans alike as the economy's prime growth engine. No one scores any political points by sticking up for Goldman.

That might explain why the company recently announced a $500 million program to provide support services and financing for small businesses. With an advisory council chaired by billionaire investor Warren Buffett, Goldman Chief Executive Officer Lloyd Blankfein and Harvard Business School professor Michael Porter, it's a high-profile project that immediately captured headlines.

But will it help you? Most likely, no. The program plans to target 10,000 small businesses -- a tiny drop in a very large bucket, given that there are millions of potential beneficiaries across the country.

Even owners who do get chosen won't find the initiative a cure-all. Goldman isn't handing out cash to pay off debt or help hire back laid-off workers. The program focuses primarily on education, funding business and management classes at community colleges and universities, and providing scholarships for small-business owners to attend. The plan is to eventually extend into online classes as well.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs