SBA Announces New Partnership to Connect Small Businesses with Corporate Supply Chains
Friday, March 23, 2012
A new private-public collaboration will help small
businesses strengthen their revenue streams by gaining access to more than $300
billion in combined supply chain spending by a consortium of 15 of America’s
largest corporations, the U.S. Small Business Administration announced today.
Supplier Connection, created by the IBM Foundation, is part
of the Obama Administration’s American Supplier Initiative and is designed to
help bridge the gap between small, nimble businesses looking for new
opportunities and large corporations looking for innovative new ideas and diversity
in their supply chains.
"The American Supplier Initiative is part of a comprehensive
solution to grow small businesses, create jobs and to ensure that America has a
strong, deep and diverse supply chain,” said SBA Administrator Karen
Mills. "While it is clear that becoming a corporate supplier can lead to
business growth, breaking in can be a challenge for small businesses. The
Supplier Connection will be one tool to help small businesses connect with
corporate buyers. Tools like this help to ensure that more small
businesses are part of commercial supply chains, which adds additional revenue
streams. This is a proven formula for job creation.”
Mills today sent letters about Supplier Connection, a new
tool to help small businesses access private sector supply chains, to more than
50,000 small businesses that currently participate in small business federal
procurement programs. Studies have shown that small businesses that are
part of large corporations’ supply chains experience increased revenues and employment.
SBA is committed to helping small businesses identify new tools and resources
to become part of these supply chains.
Supplier Connection is a free, online portal created by the
IBM Foundation that allows small businesses to send information about their
products and services to 15 large private sector companies. The 15
companies participating in Supplier Connection are: AMD, AT&T, Bank of
America, Caterpillar, Citi Group, Dell, Facebook, IBM, JP Morgan Chase, John
Deere, Kellogg’s, Office Depot, Pfizer, UPS and Wells Fargo. Together,
these 15 companies have a combined purchasing power of $300 billion and now
they will have full access to the profiles of small businesses that have
registered for Supplier Connection.
The American Supplier Initiative is a call-to-action to the
private sector to invest in their supply chains through small businesses.
The initiative aims to address four key areas in which small business need help
in order to become successful suppliers in the private sector: access to
mentorship and counseling services, increased market and revenue opportunities,
ready sources of capital to fund their growth, and a highly skilled workforce.
To date, several American Supplier Initiative announcements
have already been made:
• SBA’s International Trade Loan expansion – This program
provides small businesses with capital to finance their fixed assets, including
real estate, and working capital needs. This program offers private lenders a
90 percent guarantee on loans up to $5 million as an incentive to encourage
lending to growing small businesses. Small businesses may use the ITL program
to on-shore and help bring jobs back to the U.S.
• Export-Import Bank’s Global Credit Express Product – This
product is specially designed to deliver short-term working capital loans
directly to creditworthy small business exporters. Through this new program,
exporters may be eligible for a 6- or 12-month revolving line of credit of up
• CAPLines – SBA’s CAPLines program was recently revamped to
help small businesses meet their short-term and cyclical working capital
Identifying ways to strengthen small and medium-sized
manufacturers is a priority for the administration and additional announcements
under the American Supplier Initiative are expected to be rolled out in the
coming weeks and months.
For more information on Supplier Connection, please visit: https://www.supplier-connection.net.