A new “small and disadvantaged business” program being proposed by the Lumumba administration will not do away with the city’s Equal Business Opportunity (EBO) ordinance, but rather supplement it, says city officials.
Last week, the Sun reported that the city would be doing away with the ordinance and replacing it with a new program designed to help small and disadvantaged businesses (SBDs) receive training, build capacity and become more competitive for city contracts. This information was incorrect.
The city does hope to set up the SDB program, but as a way to enhance the current ordinance, explained Chief Administrative Officer Robert Blaine. Under the program, Jackson hopes to will set aside between $7 million and $8 million a year, specifically for SDBs. The allocation would account for about 10 percent of the city’s $70 million to $80 million discretionary spending budget, he said.
Also, the city will be partnering with local banks to help SDBs obtain credit, as well as putting in place expedited payment schedules to ensure projects will put as little strain as possible on businesses’ capital.
So far, about five banks have agreed to partner with the city.
“Our goal is to create a market in which small businesses can compete,” Blaine said. “When businesses want to do work for the city, they can go through a technical assistance program with banks to establish a line of credit, and that credit can be used for city contracts.” As part of the program, the city will set aside between $7 million and $8 million a year, specifically for SBDs. Also, the city would be partnering with local banks to help these entities obtain credit and put in place expedited payment scheduled to ensure projects put as little financial strain on businesses once they’re awarded contracts.
Chief Administrative Officer (CAO) Robert Blaine hopes the new rules will be in place at the start of the next fiscal year.
The fiscal year runs from October 1, 2018 to September 30, 2019.
“Essentially, what we’ll be doing is taking part of the budget and reserving that for small disadvantaged businesses (SDBs),” he said.
Ward Seven Councilwoman Virgi Lindsay, who said she supported the program, said she does not want to do away with the city’s current EBO regulations.
The Sun regrets the error.
