Wall Street giant Goldman Sachs Group is planning to make a big push into small-business loans, highlighting opportunities in the fast-growing market, according to a media report.
Goldman is putting together a team to draft plans for establishing a stronger presence in the consumer and small-business loans market, The Wall Street Journal reported, citing unnamed sources.
The report cites Goldman Chief Executive Lloyd Blankfein’s recent comments at the company’s annual meeting about the need for the corporation to “develop new muscles.”
The shift underscores the growing importance of small-business loans, which took a hit after the 2008 financial crash as many big banks and financial services companies pulled back from the market.
The small-business loans market has somewhat recovered as alternative lenders and financial technology firms have stepped in to fill the void left by big banks.
In a March interview with NerdWallet, David Gilbert, CEO of National Funding, said that the small-business loans market is in a period of “hypergrowth.”
David Goldin, CEO of lender AmeriMerchant, also told NerdWallet, “We haven’t even scratched the surface yet. There’s tremendous upside.”
Rohit Arora, chief executive and co-founder of Biz2Credit, an online small-business loans platform, says he expects Goldman Sachs to focus more initially on consumer loans, saying the financial services powerhouse will probably take a more cautious approach to the small-business loans market.
“Small-business lending, unlike consumer lending, is a complex business,” he tells NerdWallet. “I don’t think they will try to get into small-business lending straight away because it’s more competitive.”
To get more information about funding options and compare them for your small business, visit NerdWallet’s best business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.
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