STRATEGIC SOURCING
How has it been a success so far ? In 2022 , JPMorgan Chase launched the Diverse Supplier Grant Initiative , which provides affordable growth capital to support diverse-owned businesses that need to meet the costs associated with capturing contracts with large corporations .
The firm has given a US $ 10m grant to LISC ( Local Initiatives Support Corporation ), a Community Development Financial Institution ( CDFI ) which works directly with prospective recipients and administers the programme .
Doug Roginson , Head of Supplier Relationship Management , JPMorgan , says : “ Small businesses can find it cost-prohibitive to meet industry requirements like cyber security , insurance and bonding when bidding for new corporate business .
“ This initiative provides businesses with funds ranging from US $ 25,000 to US $ 500,000 to cover costs including : technology , cyber or networking remediation ; operational control enhancements ; increases to insurance and bonding coverage and other costs associated with meeting corporate minimum standards .”
This is a recoverable grant in the form of a no-interest loan with flexible terms offered by non-profit programme partner LISC . If the supplier successfully gains new contracts , it returns the money to the programme to be issued
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