A new bill passed by Erie County Legislators will provide precedence to local small businesses on certain contracts and purchases.
The Erie County Small Business Enterprise Utilization Act would prioritize contracts with small companies from Erie County for purchases up to $20,000 or public works contracts up to $35,000.
Lauren Jenkins, executive director at the Women’s Business Center and a small business owner, says it will help more local businesses get a foot in the door.
“One contract can be absolutely transformational. It can mean hiring another employee, investing in equipment, increasing capacity, or creating the track record that opens the door to an even larger opportunity. And that's why this legislation truly matters.”
County Legislator Lindsay Lorigo says the bill is a positive change, but there are other practices that should be maintained along the way.
“There's other things we need to be doing to get small businesses more contracts, like paying our bills on time. When you have somebody signing up for $20,000 with the county for — I don't know, T-shirts or whatever it is — and they don't get paid. But they have to pay their employees, they have to pay for those materials (out of pocket).”
State laws require that purchases of more than $20,000 or public works contracts more than $35,000 go to the lowest responsible bidder. The small business act only applies to businesses based in Erie County with fewer than 50 employees. Franchises cannot qualify or if they have more than $5 million in annual revenue.
The small business act is an important first step toward improving the county’s utilization of local companies, County Legislator Taisha St. Jean Tard said.
“We want to get people into the door and get comfortable, and as they get comfortable with the process, I hope they go after the bigger bids, like the $100,000. But this is really getting our brand-new, small businesses in Erie County opportunity to sit at the table to get these contracts, to understand the process.”
The bill still requires sign-off from County Executive Mark Poloncarz, though it could also be passed with a supermajority from legislators. Upon approval, St. Jean Tard estimates it would take an additional month to go into effect.
