Diverse suppliers continue to be at a significant disadvantage when it comes to doing business with large corporations. Further exacerbating the challenge, supplier diversity programs are often considered regulatory and compliance initiatives.

At Freddie Mac, we have turned our supplier diversity program into a competitive advantage by broadening our supplier networks and strengthening our bonds with minority-, women- and disabled-owned firms. We are doing so through innovative development programs that support our diverse suppliers, help them grow their business and meet our business needs.

Developing Diverse Suppliers

We actively grow and develop our diverse supplier pipeline through our “Supplier Academy.” For the Academy, we partner with targeted internal divisions to identify business needs and attract the right mix of diverse suppliers that can support those needs. Selected suppliers participate in a program where they network with leaders, learn how to do business with Freddie Mac and grow their business not only with us, but with other companies as well.

Promoting Diverse Firms in the Capital Markets

With regard to financial transactions, we actively work to use diverse suppliers in our capital markets transactions through a broad-based program which provides training, access and opportunities to win business. In 2022, we conducted over 50 “teach-ins” and educational sessions with diverse firms to allow them to become more familiar with our capital markets program and build relationships with investors.

Providing Support During COVID-19

Freddie Mac also has taken steps to support our suppliers during the COVID-19 pandemic, including by accelerating payments so that our more than 200 small and diverse business suppliers received payment on invoices 20 days earlier than the standard payment terms. Earlier access to these funds helps cash-strapped businesses make payroll and cover overhead expenses during the pandemic.

To date, nearly 45% of our Academy graduates have competitively bid and earned a contract with us post-graduation. In addition, Freddie Mac was one of the first firms to use a diverse supplier as a co-lead underwriter on a debt issuance indexed to the Secured Overnight Financing Rate (SOFR).