- Abbott and LISC invest more than $37
million to empower and grow diverse small businesses that
provide manufacturing and essential products for healthcare
companies
- Initiative supports Abbott and LISC's commitment to increase
diversity in healthcare and generate jobs and strengthen economies
in underinvested communities
ABBOTT PARK, Ill., and
NEW YORK, March 30,
2022 /PRNewswire/ -- Abbott (NYSE: ABT) and the Local
Initiatives Support Corporation (LISC) announced a $37.5 million initiative to provide diverse small
businesses with the tailored growth capital, loans and support they
need to compete, grow and create jobs. The initiative will support
greater diversity in the healthcare industry by advancing a more
inclusive supply chain for Abbott and other healthcare companies,
while contributing to broader economic and health equity.
In the healthcare supply chain, the small businesses that help
produce diagnostics, nutrition products, medical devices and other
health technologies do not reflect the diversity of the communities
they serve – which reflects a broader diversity gap in businesses
across America. According to the U.S. Census Bureau, only 19% of
U.S. businesses are owned by people of color and 21% are owned by
women, despite representing 40% and more than half the population,
respectively. Owners of diverse small businesses – including people
of color and women – can help drive change, but many face
challenges, with 50% unable to access loans to grow their
business.
The Abbott-LISC Initiative to Support Diverse Businesses in
Health aims to break down barriers that prevent diverse small
businesses from providing manufacturing and essential products in
healthcare. By providing targeted support, Abbott and LISC are
working to build a stronger, more diverse healthcare supply chain,
as well as healthier local economies and communities.
"We're committed to tearing down the barriers that diverse
small-business owners often face, and to building a more inclusive
supply chain in healthcare," said Robert B.
Ford, chairman and chief executive officer, Abbott. "Our new
initiative with LISC takes real, pragmatic steps to make that
happen."
"This partnership is a shared investment in the future of our
communities and the strength of our supply chains," said LISC CEO
Lisa L. Glover. "We're proud to
partner with Abbott to deliver capital and technical services
that enhance the infrastructure for small business growth, so
owners from diverse backgrounds are better able to compete for
contracts, hire more staff, and fuel economic opportunity in the
communities where they operate."
Targeted Support for Diverse Small Businesses
Abbott
is contributing $25 million for the
initiative, including $12.5 million
in loan capital and $12.5 million in
grants to LISC to provide investment funding and targeted support.
LISC is matching the investment with an additional $12.5 million in loan capital. This funding will
support diverse small businesses in three ways:
- Growth capital: With Abbott grant support, LISC
will provide interest-free capital to help businesses overcome
hurdles to expansion, such as investing in management systems to
comply with regulatory and environmental requirements. Businesses
will repay LISC if and when they meet certain growth targets.
- Business loans: Abbott and LISC funding will provide
flexible, affordable loans with terms that would not typically be
available through conventional lenders.
- Technical assistance: An Abbott grant will support
LISC in providing customized support to businesses accessing
capital and loans through the initiative, including help with
fulfilling investment and loan requirements and identifying and
addressing specific business barriers to growth.
Eligible small businesses are those that are majority owned by
people of color (including Black, Latino, Asian and Native American
business owners), women, veterans, people with disabilities, people
who identify as LGBTQ and other historically underrepresented
groups in the U.S. with more than two years in operation and an
ability to deploy capital toward business improvements and growth.
To qualify, businesses should focus on manufacturing and essential
business-to-business products that support the production of
diagnostics, nutrition products, medical devices and other health
technologies.
Collaboration Part of Broader Work to Advance Diversity,
Equity, Opportunity
This joint initiative
supports Abbott's 2030 Sustainability Plan, which aims
to advance health access and equity through partnership and build a
diverse, resilient and responsible supply chain – with specific
targets to increase overall spending with diverse and small
businesses 50% by 2030 and with Black- and women-owned businesses
150% by 2025. This work complements Abbott's ongoing commitment to
address broader health equity challenges, including
increasing diversity in clinical trials,
creating opportunities in STEM for women and
underrepresented groups, and empowering communities to
break down social and economic barriers to better
health.
The work also supports LISC's Project 10X, which bridges racial
health, wealth and opportunity gaps throughout the country. The
initiative helps break down historical and systemic barriers by
investing in businesses, community organizations, developers and
projects that are driven by and for communities of color.
To learn more about this initiative, funding eligibility and
opportunities, see Abbott's site and LISC's site.
About LISC
LISC is one of the country's largest
community development organizations, helping forge vibrant,
resilient communities across America. We work with residents and
partners to close systemic gaps in health, wealth and opportunity
and advance racial equity so that people and places can thrive.
Since our founding in 1979, LISC has invested $24 billion to create more than 436,320
affordable homes and apartments and develop 74.4 million square
feet of retail, community and educational space.
About Abbott
Abbott is a global healthcare leader that
helps people live more fully at all stages of life. Our portfolio
of life-changing technologies spans the spectrum of healthcare,
with leading businesses and products in diagnostics, medical
devices, nutritionals and branded generic medicines. Our 113,000
colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com, on LinkedIn at
www.linkedin.com/company/abbott-/, on Facebook at
www.facebook.com/Abbott and on Twitter @AbbottNews.
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SOURCE Abbott