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Chicago City Council extends MWBE set-aside program
Published on 12/07/2020

The Chicago City Council has its set-aside program for minority- and woman-owned businesses (MWBEs) through September of 2021. The timeframe for this extension was set in order to ensure that the disparity study currently being conducted for the City will be released before making possible larger changes to the set-aside program. The study is currently due in early Spring of 2021.

Changes that have been discussed, pending the results of the disparity study and its potential usage as legal framework for the changes, include: raising the utilization goals to 30 percent for MBEs (from 26 percent) and 10 percent for WBEs (from 6 percent); and raising caps on gross income and personal net worth for eligibility for the program (the caps are currently set at gross receipts of $33 million over the prior three years and a personal net worth of $2.4 million, and could potentially be raised to $100 million and $10 million, respectively). 

The set-aside program would include procedures under which businesses would be required to make good-faith efforts to reach the figures of 30 percent and 10 percent, respectively, for MBE and WBE participation, and to demonstrate such efforts should they fall short.

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