Johnson & Johnson is one of 26 companies to join a new federal initiative, Supplier Pay, a new partnership with the private sector to strengthen small businesses by increasing their working capital. The program was announced by the White House.

President Obama, Senior Advisor Valerie Jarrett, National Economic Council Director Jeff Zients, and Small Business Administrator Maria Contreras-Sweet hosted a meeting at the White House  with these businesses and their suppliers to discuss what more can be done to strengthen small businesses, building on the successes of the federal government’s QuickPay program.

The QuickPay initiative, which President Obama launched in 2011, requires federal agencies to expedite payments to small-business contractors with the goal of paying within 15 days. SupplierPay is the private sector's equivalent, where companies have committed to pay small suppliers faster or help them get access to lower-cost capital.

The President also is renewing QuickPay for federal small-business subcontractors, where the government pays its large contractors faster and, in return, requires them to pay their small-business subcontractors faster. QuickPay for small-business subcontractors, which began in 2012, was only available temporarily for many small business subcontractors. The recent announcement applies to  all small-business subcontractors. The White House estimates that the QuickPay program has reached 172,000 small businesses, covering $220 billion in contract awards, and generating well over $1 billion for small businesses.

In addition to Johnson & Johnson, other companies signing up for the Supplier Pay initiative are: Apple, AT&T, Authentix, Cardinal Health, Coca-Cola, CVS, Ericsson, FedEx, Honda, IBM, Intuit, Kelly Services, Lockheed Martin, Milliken, Molina Healthcare, Nissan, PG&E, Philips, Rolls Royce, Rothschild North America, Salesforce, Textura, Toyata, Walgreens, and Westinghouse Electric Company.

Source: The White House
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