Small businesses are the engine of economic growth in America. Their strength is vital to creating new jobs and hiring more workers across our country. That is why President Obama launched the SupplierPay initiative, a new partnership with the private sector to support the health and vitality of small businesses by increasing their working capital.
Here's how it works: On average, corporations take 46 days to pay their invoices of their suppliers -- small businesses that provide them services necessary for their business. Waiting an average of 46 days to get paid leaves small businesses without the capital they need to hire and invest in new opportunities or equipment.
Thanks to the SupplierPay initiative, companies are now committing to pay small businesses contractors faster. This way, small suppliers get the capital they need and larger companies benefit from higher-quality goods, more stable suppliers, and lower prices.
Twenty-six companies joined the President in the initial launch of SupplierPay, and yesterday, 21 companies signed on to the pledge -- including Xerox Corp., Hallmark Cards Inc., Kaiser Permanente, and Zappos.com, Inc. See a full list of the companies that are participating here.
Take a look at what a few of the newest partners have to say about #SupplierPay: