Amazon Links Up With Goldman Sachs To Provide Small Business Credit Lines

Amazon announces a new credit line program for the U.S. merchants on its platform in joint venture with Goldman Sachs, according to a CNBC report — it’s the company’s first collaboration with an outside lending partner, and it’s Goldman Sachs’ latest push into the mainstream consumer lending arena.

What You Should Know:

• Small business sellers who sell using Amazon’s platform will “soon” receive an invitation to apply for credit lines up to $1 million through Marcus, Goldman’s consumer banking arm, CNBC reports.
• These revolving credit lines will come with fixed interest rates between 6.99% and 20.99% depending on credit profile, business financials, and time in business.
• CNBC reported that the project is labeled as “Augusta” within the investment bank — has been in development for the last two years and will drastically expand Amazon’s existing small business lending appetite.
• Amazon had reportedly considered developing an online lending platform in which Goldman would have been one of many competing lenders, but ultimately disposed the idea and decided to work exclusively with Goldman Sachs.

Goldman Sachs has been a top tier provider of personal loans and high yield checking accounts through their platform, Marcus. Goldman is aggressively expanding their reach with partnerships that include JetBlue, Apple, AARP, and Intuit. Amazon began to explore the small business lending space back in 2012 and now makes a major push as Small Businesses across the country will be eager for capital.