Abbott and the Local Initiatives Support Corporation (LISC) have announced a $37.5 million initiative designed to provide diverse small businesses with tailored growth capital, loans, and other support they need to compete, grow, and create jobs as well as create a stronger, more diverse healthcare supply chain.

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 percent of U.S. businesses are owned by people of color and 21 percent are owned by women, despite representing 40 percent 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 percent 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 health care by providing interest-free growth capital, customized technical assistance, and flexible, affordable business loans. The commitment includes $25 million from Abbott—$12.5 million in loan capital and $12.5 million in grants to LISC to provide investment funding and targeted support—and an additional $12.5 million from LISC in loan capital.

“We’re committed to tearing down the barriers that diverse small-business owners often face, and to building a more inclusive supply chain in health care,” said Abbott chair and CEO Robert B. Ford. “Our new initiative with LISC takes real, pragmatic steps to make that happen.”

(Photo credit: Abbott, used with permission)