The Arlington Economic Development Corporation is temporarily pausing new enrollments in its small business certification reimbursement program as it navigates multiple changes from the City Council.
In the past two months, the program saw two changes to the certifications for which it would reimburse Arlington-based businesses. In the first instance, City Council voted to remove certifications that city staff believed put Arlington at risk of losing its federal funding in light of federal anti-diversity, equity and inclusion directives.
“We’ve had an overwhelming response to the program, and we’re working through compliance reviews, drafting contracts, and updating the program to reflect recent changes to the approved certifications,” Teresa Burnett, the communication coordinator for the Arlington EDC, said in a statement.
The Arlington Business Certification program was created in late May with the hopes that it would connect small business owners with the tools they needed to make their businesses successful.
To participate in the program, business owners would apply through the Arlington Economic Development Corporation and, if accepted, could begin the certification process with certain local and national organizations.
The Arlington EDC reimbursed certification fees up to $650 for small business owners.
In September, City Council voted to amend the program, removing multiple certifications and two certifying bodies.
The two organizations removed from the program were the Women’s Business Council Southwest and the DFW Business Council — formerly known as the DFW Minority Supplier Development Council.
The organizations hosting the certification programs were both removed after city staff said their inclusion in the economic development corporation’s small business program put them at risk of losing federal funding following anti-DEI federal directives.
What organizations were involved in the original Arlington Business Certification program?
- The Small Business Administration
- North Central Texas Regional Certification Agency
- DFW Minority Supplier Development Council, now the DFW Business Council
- Women’s Business Council Southwest
Just over a month after being removed from the program, the two organizations were reinstated with different certifications.
Margo Posey, the CEO and president of DFW Business Council, said that the organization has undergone multiple rebrandings since its creation in 1973 and that it has always kept its certification process open to all business owners, regardless of ethnicity.
When the program reopens admission, the certifications that the Arlington EDC will reimburse businesses from the DFW Business Council and Women’s Business Council Southwest will issue Small Business Enterprise certifications.
Originally, businesses could obtain the Minority-Owned Business Enterprise certification from the DFW Business Council and the Women’s Business Enterprise certification from the Women’s Business Council Southwest, whose headquarters were located in Arlington between 2000 and 2017.
These certifications have an impact on a business’s visibility in the contract market. Some federal contracts are only offered to businesses that are a part of the Women-Owned Small Business Federal Contract Program.
The federal government aims to “allocate at least 5% of all federal contracting dollars to women-owned small businesses each year,” according to the Small Business Administration website.
To enter that program, businesses must either get their certification through the SBA or an approved third-party. The Women’s Business Council Southwest is an affiliate of the Women’s Business Enterprise National Council, which is one of four third-party organizations that are approved by the SBA.
The Women’s Business Council Southwest did not respond to requests for comment.
Posey said that the primary certification that businesses went through the DFW Business Council for was the Minority-Owned Business Enterprise certification.
“That certification is the certification of choice for corporate America,” Posey said. “There are over 500 corporations that request (National Minority Supplier Development Council) certification if you want to do business with them as an ethnic minority and be counted.”
Burnett said the Arlington EDC will relaunch the program “once these updates are in place,” but did not specify when the program’s enrollment was closed and the program was removed from the organization’s website.
Chris Moss is a reporting fellow for the Arlington Report. Contact him at chris.moss@fortworthreport.org.
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