Chicago set-aside program extended through 2027

IL News - Published Sep 14, 2021

The City of Chicago has extended its set-aside program for minority- and woman-owned businesses (MWBEs) through December of 2027. The rationale for the extension is built on a recent disparity study conducted by the City, and also includes broadened eligibility requirements.

MWBEs will now be able to qualify for the set-aside program while meeting 150% of the size standard (determined by gross receipts) established by the U.S. Small Business Administration (SBA), and will be able to average out their gross receipts over seven years as opposed to five years. Additionally, the extension eliminates certain assets such as real estate and retirement savings in determining personal net worth when establishing eligibility. 

The program, now that it has been extended, will set aside 26 percent of all construction contracts for MBEs and 6 percent of all construction contracts for WBEs during the period lasting through December 2027.

Read the legislation extended the set-aside program at https://chicago.legistar.com/LegislationDetail.aspx?ID=4994327&GUID=9BDDDED4-DA1A-43A7-8E4D-7AC9BED64B6F&Options=&Search=.