Google To Fund Businesses Affected By COVID Around The World

Google

Google is partnering with the European Investment Fund (EIF) and two other organizations in Latin America and Asia to extend $75 million in funding to small and medium-sized businesses (SMBs) suffering from the impact of COVID-19. The funds are part of an $800 million initiative Google announced in March at the start of the pandemic. A division of Alphabet, Google said it would invest in two EIFs, offering $15 million in loan capital to 1,000 SMBs in Europe and $10 million for a fund supporting 200 companies in the life sciences space.

Juan Rajlin, treasurer of Alphabet and Google, said in a blog post on Wednesday (Feb. 17) that the company’s international partners “will help fulfill our $75 million commitment to small businesses outside of the U.S.”

“We’ve partnered with two innovative government-sponsored investment initiatives, with the belief that public-private partnerships can provide creative solutions to meet the needs of small businesses in this critical time,” he said in the post.

Google said it aims to forge partnerships with organizations on a mission to assist small businesses in underserved communities. In the U.S., Google teamed up with the Opportunity Finance Network (OFN), which had a hand in extending $90 million low-interest loans from the Grow with Google Small Business Fund. Furthermore, the Silicon Valley search giant said it will extend grants to over 30 community development financial institutions (CDFIs) nationwide, which in turn will offer financial support to SMBs.

In Latin America, Google is advancing its long-term partnership with the Inter-American Development Bank through its innovation lab. “We are allocating $8 million to increase the capital available in the region for small businesses. Two out of three workers in Latin America are employed by a small business, which makes their success one of the most essential elements for economic recovery in the region,” the post stated.

In Africa, the Middle East and Indonesia, Google said it established a $26 million loan initiative with the crowdfunding firm Kiva, which serves the underserved around the world. The two are planning to collaborate on developing financial solutions that will support SMBs in 10 countries. Google.org is also providing a separate $1 million grant to help Kiva build capacity for their local partnerships and research the impact of this program.

The Paycheck Protection Program (PPP) saved some 2.3 million jobs through early June, boosting employment by roughly 2 percent to 4.5 percent.

In a PYMNTS interview, Kevin Phalen, Visa’s global head of business solutions, said that 82 percent of SMBs surveyed indicated that they would explore more digital technology to meet their consumers’ needs. Some 47 percent said they are integrating security and fraud management software.