Not too long ago we suggested Goldman Sachs (NYSE: GS) could touch up its tarnished reputation with more small business initiatives. We thought that might take the form of a purchase of a small business lender like CIT. It turns out the bank has moved in a different direction, a decision that its supporters will applaud from a PR standpoint.

The investment banking giant will provide $20 million in loans to New Orleans area small businesses as part of a nationwide small business growth initiative, Dina Powell, president of the Goldman Sachs Foundation and New Orleans Mayor Mitch Landrieu announced this week. Other cities to receive funds so far are New York City and Los Angeles.

However, Goldman is not getting into the lending business. The money will be seeded to HOPE Enterprise Corporation, a Community Development Financial Institution based in Jackson, Miss., according to the New Orleans Times-Picayune. About 30 businesses are expected to receive loans through the program this year.

We'll likely see other initiatives from Goldman as it works to burnish its public image.

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