Abbott, LISC Begin $37.5M Initiative to Combat Healthcare Supply Chain Diversity, Equity Gaps

Abbott and the Local Initiatives Support Corporation (LISC) revealed a $37.5 million initiative to give small businesses tailored growth capital, loans, and support to compete, grow, and create jobs. The initiative aims to support greater healthcare industry diversity by growing a more inclusive supply chain and contributing to broader economic and health equity.
 
According to the U.S. Census Bureau, 19% of U.S. businesses are owned by people of color and 21% are owned by women, despite that these groups represent over 40% and half of the population, respectively. Further, half the owners of diverse small businesses are unable to access loans.
 
Abbott is contributing $25 million—half of which will be used for loan capital and the other half spent in grants to LISC. LISC is aiding Abbott’s contribution with an additional $12.5 million in loan capital.
 
Abbott’s grant support will allow LISC to offer interest-free capital so businesses can overcome expansion hurdles like management system investments for regulatory and environmental compliance. Businesses can repay LISC if and when they meet certain growth targets. Abbott and LISC funding will also be used for flexible, affordable loans with terms not usually available when using conventional lenders.
 
LISC will also help companies fulfill investment and loan requirements as well as identify and address business barriers to growth.
 
To be eligible for the support, businesses must be majority owned by people of color (including Black, Latino, Asian, and Native American business owners), women, veterans, people with disabilities, those identifying as LGBTQ, and other historically underrepresented U.S. groups with over two years in operation and ability to deploy capital toward improvement and growth.
 
To qualify, businesses should focus on products supporting Abbott’s specialties—medical devices, diagnostics, nutrition products, and other health technologies.
 
“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,” Abbott chairman and CEO Robert B. Ford told the press. “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,” added 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.”