By Daniel Costello

Facing growing criticism over its likely massive bonus payouts as the U.S. economy remains in turmoil, Goldman Sachs said this week it would provide $500 million in loans and gifts to support small businesses. What the company didn't say is how good a deal it is getting on the investment.

According to an analysis posted yesterday on SmartMoney.com, Goldman's ultimate price tag for the initiative could be roughly $136 million to $150 million--70% or more below the figure that helped generate so much publicity for the firm this week.

A big chunk of the money is destined for charitable institutions, creating potentially sizable tax deductions for Goldman, while other portions are being made as loans that Goldman confirms it expects to be repaid with interest.

Asked about the estimates, a Goldman spokesman didn't comment on the specific figures but defended the program as a boon to small businesses, while giving Goldman "a modest economic return."

categories: News

6:46 - November 20, 2009

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