In an attempt to shore up their shattered images to many people, Warren Buffett of Berkshire Hathaway (NYSE:BRK-A) and Goldman Sachs (NYSE:GS) are working together in efforts to help small business. As big business siphoned off the stimulus dollars, largely leaving small business out in the cold, it seems this is an attempt to court public favor by the companies and individuals involved.

To help repair their reputations, a program was launched to supposedly assist small business, beginning with a $500 million stake to start off with. Buffett’s role will be his participation on an advisory panel to that end. Goldman is supplying the cash.

Warren Buffett’s huge investment in Wells Fargo (NYSE:WFC) through Berkshire Hathaway, during the time he was raising the banner for Obama’s bailout programs using taxpayers’ dollars, has raised questions on the ethics of that behavior, when Buffett and his holding company were directly benefiting from it.

With Goldman Sachs, their reputation has been hit even harder, as they’ve largely been the focus of the media as the face of excess during these difficult economic times. They had no qualms about receiving funds that were dubious as to really being needed by the company to bail it out. Add to that the insult of bonuses being put aside worth about $16.70 billion for their executives and traders, and they aren’t getting any sympathy from anybody.

Buffett’s reputation has also suffered one of the major setbacks of his lifetime, with a large segment of the population wondering why at this stage in his life he pushed his will and opinions on the American people, when at minimum it would directly benefit Buffett’s company Berkshire Hathaway through its huge stake in Wells Fargo. Over the last 3 months Buffett has added over 10 million more shares in Wells Fargo to the Berkshire Hathaway stake already in the company.

Concerning the program aimed at small business, even that is somewhat suspect, as the touting of marketing the first company to receive funds from the program, Seedco Financial Services Inc., a non-profit group based in New York, doesn’t make any sense whatsoever from the point of view of aiding small business.

What Seedco Financial Services Inc. does is loan money to poor communities, where there is little business to serve the community. Of course the reason there is little business to serve the community is there is no money in the community. This is a charity program under the guise of a small business program; at least as far as their first recipient of the funds.

As a matter of fact, Goldman Sachs says a full $250 million will be earmarked for charitable endeavors. What that’s really saying is they’re attempting to buy the support of areas of the country that will siphon through this money while doing little or anything for real, operating small businesses that have a future.

About $50 million of it will be used for so-called community-development financial institutions, which do very little good as it is, and will go through this money with very little to show for it. Think of the ways grants and loans are dispersed to third-world countries and do nothing year after year. That’s what this sounds like it’s going to be performing.

More confirmation of that is the other $200 million of this portion of the $500 million will be used for education. Education? Why not put the money in small businesses that already exist, which could then be used to generate new business and create some jobs.

Speaking to that, supposedly the other $250 million will be given to institutions which will offer financing to small businesses, addressing that very problem and challenge. The problem is they’re not really targeting small business, but are really just pouring money into the poor districts. There’s nothing wrong with that, but they should just say that’s what they’re doing instead of marketing it as something that will help the economy by strengthening small business owners.

It doesn’t bother me that Goldman Sachs is doing this in general, as it’s their money. Warren Buffett adding his name to it isn’t a real big deal either. What’s troubling is it’s being marketed as an investment in small business, when in reality it’s a charity program for those that may never be of any help for others. Just call it what it is, rather than pretend you’re doing something to help small business make a difference.

For those in small business who are hit by hard times, you’re very unlikely to see any of this money, as it’s going to be put into sectors of the country where it will do no good. Yet this will give a positive report for these companies and individuals who have fallen out of favor with the general public and who are attempting to make them forget what part they played in the outrageous debacle of socialist redistribution they profited from handsomely, and will for years to come.

This is all strange to me, especially in reference to Warren Buffett, who seems determined in the latter years of his life to destroy the legacy almost assuredly he had positively gained for himself. It’s slowly crumbling under him as he reveals his socialist leanings, and isn’t shy about taking from the public trough to profit at the expense of the people. Sitting on the board of a charity under the guise of an aid to small business isn’t going to do anything to help his deteriorating image.

What would have really been a great work for an organization with this type of backing would have been to offer financing for successful, but struggling businesses who have a legitimate chance at making a difference in the economy, while creating jobs. What a wasted opportunity to do some real good.