In July, the White House and the SBA joined together with the private sector to pledge that big companies would pay their small business vendors faster. I’m a small business owner and I know what it’s like to have a vendor pay you in 30, 60 or 90 days! Argh.
This is a cash flow nightmare and something often talked on ABC Shark Tank.
I don’t usually cover “government new” but this initiative is so intuitive that I thought to share it with you.
Here’s the original announcement, excerpted below…
As a part of his Year of Action, the President is using the power of his pen and phone wherever he can on behalf of the American people to create jobs and help hard-working Americans get ahead. Today, the President will announce the creation of SupplierPay, a new partnership with the private sector to strengthen small businesses by increasing their working capital, so they can grow their businesses and hire more workers.
To launch SupplierPay, the President is bringing together 26 companies – both large and small – that have committed to the initiative. For the larger companies, joining SupplierPay demonstrates a recognition that a healthy supply chain is good for business. For the small business suppliers, benefiting from SupplierPay means having more capital to invest in new opportunities, new equipment, and new hiring.