Strengthening small business access to capital is a 'win-win' for small companies and us, their large customers. We recognize that we thrive when supply chains are healthy, when firms of all sizes are able to support our growth, investing in new ideas and new equipment, and creating new jobs. We do best when Main Street is strong, as small businesses are critical to our reaching our full economic potential as a company and a nation. Small firms are responsible for the majority of U.S. job creation and generate close to half of U.S. gross domestic product. While small firms have made momentous strides in recovering from the depths of the Great Recession, too many small businesses continue to struggle to access capital, including working capital, which creates a drag on growth and employment.
We are committed to addressing this marketplace gap in small business lending. Our efforts are intended as a meaningful step in reinvigorating our supply chains, making them more resilient over time while supporting Main Street today. Accordingly we resolve to:
- Provide A Working Capital Solution to Our Small Business Suppliers: We will take active steps to lower the working capital cost of small business suppliers through either:
- Paying our small suppliers faster than we do today in order to reduce their capital needs.
- Enabling a financing solution that helps small suppliers to access working capital at a lower cost.
- Share Best Practices: Our pledge is a first step in a larger effort to strengthen supply chains and support small firms with the goal of driving impactful follow on action from the broader marketplace. To encourage wider support, we'll highlight tangible outcomes for our own efforts, providing visibility into our actions and publicize key learnings in implementing this pledge.
- Implement a 'Win-Win' Solution: We will implement this pledge in a manner that ensures our small suppliers are able to take advantage of our commitment while minimizing new administrative or operational burdens. We will define 'small supplier', and if we choose to offer these solutions to the entire supply chain we will continue to focus our efforts on the small suppliers that will benefit most. We will not use our pledge to offer financing solutions as a means of extending payment terms with our current small business supplier base.
Is your company ready to make the pledge? Contact us at SupplierPay@who.eop.gov