Goldman Sachs Helps Loan $1.45 Billion to Women Entrepreneurs

(Bloomberg) -- Goldman Sachs Group Inc. said a campaign to increase lending to women-owned businesses in developing countries has arranged $1.45 billion in financing since 2014, more than double the initial goal.

A partnership between the company and the World Bank’s International Finance Corp. has supported almost 53,000 entrepreneurs, according to an interview with Asahi Pompey, Goldman’s global head of corporate engagement and president of the Goldman Sachs Foundation.

“There’s a catalytic impact of investing in women entrepreneurs,” Pompey said. “They reinvest their savings in health and education for families. They create new jobs and products and services in their communities, resulting in growth in those communities.”

The Women Entrepreneurs Opportunity Facility started with $43 million of philanthropic capital from Goldman Sachs, aiming to distribute $600 million and reach 100,000 women-owned businesses by 2024. Under the program, the IFC funds local firms that make loans to the businesses. Women typically have less access to business financing worldwide, a credit gap Goldman Sachs estimated to be $1.5 trillion.

External investors provided $471 million of capital to the program, added to $979 million from IFC’s own balance sheet invested across 33 middle- and low-income countries.

To contact the reporter on this story: Emily Chasan in New York at echasan1@bloomberg.net

To contact the editors responsible for this story: Janet Paskin at jpaskin@bloomberg.net, Dan Reichl, David Scheer

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