Small Businesses will see their revenue stream increase due to a new private-public partnership. It will result in unleashing $300 billion in supply chain spending by a consortium of 15 of America’s largest corporations.
IBM Foundation created this supplier connection and it is part of Obama Administration’s ‘American Supplier Initiative’. The Supplier Connection is a free online portal through which small companies can communicate about their product and services to 15 large American corporations. The program is meant to bridge gaps so as to help small businesses find capital and look for better opportunities. The large corporations can also start looking for new options and diversity in their supply chain.
The American Supplier Initiative is part of a comprehensive solution meant for growing small businesses, creating more jobs, and to ensure that America has extensive and strong supply chain. The supplier connection is like a tool for small businesses to connect with corporate buyers. The partnership will ensure that more small businesses become part of commercial supply chains. It is meant to build up additional revenue streams for business owners.
Karen Mills has sent letters to 50,000 small businesses currently involved in Small Business Federal Procurement program. It has been done to inform about this new apparatus so that they can start gaining access to private sector supply chains. SBA stays committed to open means for small businesses in search of new opportunities to get streamlined within the supply chain. Several American Supplier Initiative announcements have been made so far. Some of these are:
- Export-Import Bank’s Global Credit Express Product – This is meant to provide short-term working capital loans to small business exporters eligible to find enough credit. Through this program, exporters will find 6-12 month of revolving line of credit ranging up-to $500,000.
- SBA’s International Trade Loan Expansion – This program makes capital available to small businesses so that their fixed assets get financed. This covers real estate and working capital needs. The program offers 90 percent guarantee on loans up-to $5 million so as to increase lending to small businesses.
- CAPLines – This program has been revamped recently so as to help small business owners fulfill their working capital and other short term needs.
SBA thinks that its priority is to strengthen small and medium-sized enterprises by working on the supply chain. There can be more announcements under the American Supplier Initiative to be made in coming weeks.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org