Money for a small business program aimed at helping local companies secure contracts with the city goes before the Fort Worth City Council on Tuesday.
The program, if approved, gives certain preferences to entities with a certification from the national Small Business Administration, or SBA, as part of an effort designed to mitigate the impact of removing specific economic incentives for minority- and women-owned businesses.
Heading up the efforts to set up the Fort Worth Small Business Economic Development Program will be the major chambers of commerce.
The council will vote on spending $270,000 each with the Fort Worth Hispanic Chamber of Commerce and the Fort Worth Metropolitan Black Chamber of Commerce and $185,000 with the Fort Worth Chamber of Commerce to provide services to small businesses to help them gain access to city contracts.
Michelle Green-Ford, president of the Black chamber, told council members on Aug. 5 that losing the city’s DEI efforts for local businesses was a difficult process for all.
“But I want you to know I am energized by the connections we have with the other chambers, working with the Fort Worth chamber and the Fort Worth Hispanic chamber together and the city leaders,” Green-Ford said. “I am confident that we can move forward with a plan that will move the city forward and develop all of our small businesses.”
The new program comes after the council voted 7-4 to suspend diversity, equity and inclusion-related initiatives in an effort to comply with requirements of President Donald Trump’s administration and protect millions of dollars the city receives in federal grants.
After that Aug. 5 vote, council members voted 10-1 to create the small business development program. Deborah Peoples, who represents District 5, was the dissenting vote.
The city had previously provided $178,504 in financial support for the Hispanic Chamber of Commerce and the Metropolitan Black Chamber of Commerce each to provide business development assistance, construction assistance and outreach programs to minority- and women-owned businesses.
Because of the expansion of their work to more small businesses, the funding for those contracts have been increased, according to a city presentation on the plan.
The contract with the Fort Worth Chamber of Commerce is new and will focus on developing relationships between prime contractor and subcontractors on joint-ventures and on mentor/protege opportunities. The chamber will also conduct related quarterly small business expo events and industry forums.
The city’s new plan to connect small businesses to government contracts is two-tier.
When a small business bids for city projects costing less than $100,000, they will receive a 5% bid preference, Assistant City Manager Dana Burghdoff told the council on Aug. 5. For projects over $100,000, the city will start with a 30% small business utilization goal, among other initiatives.
The SBA sets standards for the maximum size that a business and its affiliates can be to qualify as a small business. Most manufacturing companies with 500 employees or fewer, and most nonmanufacturing businesses with average annual receipts less than $7.5 million, qualify as a small business, according to the U.S. Small Business Administration.
Ericka Garza, president of the Hispanic chamber, said at the Aug. 5 meeting that her chamber will work with the city to match qualified small businesses with contracting opportunities.
“We remain focused on adapting to the current laws while continuing to support the small businesses which are the heart of our community,” she said. “The structure and clarity of the city’s proposed program gives us a more defined framework which enables us to move more intentionally, be more data driven and strategic in our efforts.”
Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
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