President Barack Obama will announce today that 26 companies including Apple Inc. (AAPL:US), Johnson & Johnson (JNJ:US) and Coca-Cola Co. (KO:US) are committed to speed payments to their suppliers that are small businesses.
The White House said in a statement released this morning that the faster payments will provide more working capital for suppliers to invest in new equipment and new hiring. The participants also have the option to offer financing to help suppliers cut their costs.
One of the companies participating, Intuit Inc. (INTU:US), has agreed to pay its small businesses within 10 days, according to the statement. The program doesn’t set a time limit for the payments.
The program is modeled on a government program the Obama administration started in 2011 that requires federal agencies to expedite payments to small business contractors with a goal of paying within 15 days, according to the statement.
Obama will host a meeting at the White House today with representatives of participating companies and their small-business suppliers.
Other businesses that have committed to the initiative, according to a list provided by the White House, are: International Business Machines Corp. (IBM:US) Honda Motor Co., Toyota Motor Corp., Nissan Motor Co., Kelly Services Inc. (KELYA:US), Rothschild North America Inc., AT&T Inc. (T:US), CVS Caremark Corp. (CVS:US), Lockheed Martin Corp. (LMT:US), PG&E Corp. (PCG:US), Walgreen Co. (WAG:US), Authentix Inc., Milliken & Co., Royal Philips NV, Salesforce.com Inc., Westinghouse Electric Co., Cardinal Health Inc. (CAH:US), FedEx Corp. (FDX:US), Molina Healthcare Inc. (MOH:US), Rolls Royce Plc, and Textura Corp. (TXTR:US)
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