Bank of America has promised to increase its purchases of products and services from small to mid-sized businesses and with those with diverse ownership.
BofA, one of the world’s largest financial institutions, said it is committed to spending $10 billion over five years. It spent $1.9 billion with this group of suppliers in 2009, said spokesman Jefferson George, and will increase spending by about 5.6% a year so that by 2014 it will spend $2.5 billion.
The bank defines small and mid-sized businesses as those with annual revenues of less than $50 million. Diverse businesses are those owned by women, minorities, military veterans or the disabled. The vast majority of the bank’s procurement spending will still be with large corporations, George said.
The spending will be nationwide and for all sorts of products and services, including advertising, window cleaning, furniture, courier service, home inspections, legal services, photography, security and software, George said.
The best place to start the process of winning some of that business, he said, is to go to the bank’s supplier website at www.bankofamerica.com/suppliers.
“What businesses of all sizes are telling us they need most right now is more business,” said Brian T. Moynihan, BofA president and CEO. “In addition to extending credit…we want to increase our support by purchasing more of their products and services, particularly from small, medium-sized and diverse businesses.”
David Darnell, president of BofA global commercial banking, added, “Our clients are telling us that until they see sales pick up, they are reluctant to hire and invest in their businesses.”
Lack of business is the top concern of small-business owners, according to a recent survey by National Federation of Independent Business. “Bank of America’s commitment to increase spending with these businesses will go a long way to addressing that concern and helping those companies survive and thrive.”
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