Small local businesses and non-profits will soon get a boost when it comes to doing business with the County. Two new pilot programs designed to overcome barriers were launched on Tuesday.
The programs are part of the County’s overarching goal to direct 25% of its $2.2 billion annual contract spending toward small businesses, a move that would potentially keep about $550 million per year in the region.
The County went to non-profits, small businesses, economic development and business support advocates for feedback on how to attract more small businesses. The pilot programs address some of the more common obstacles.
The County is partnering with Founders First Community Development Corporation (Founders First CDC) to help small businesses with bonding and/or insurance requirements, and bookkeeping assistance.
The Bonding and Underwriting Insurance for Local Development (BUILD) program will offer direct support and financial resources to small businesses and non-profits that typically can’t afford those requirements.
The Compliance, Operations and Readiness Education (CORE) program aims to prevent labor violations and promote fair business practices by providing expert-led administrative and bookkeeping assistance.
Both the BUILD and CORE pilot programs expect to support more than 100 small businesses and nonprofits over the next year.
The programs are designed to offer hands-on support so local entrepreneurs can grow their businesses, create jobs and compete for new opportunities.
To attract more small businesses, the County Board of Supervisors voted on Aug. 26 to make sweeping policy changes to its purchasing and contracting system. The changes:
- Raised the small local business preference from 5% to 15%, meaning a proposed bid price will be evaluated as if it were up to 15% cheaper, helping them better compete with larger companies
- Expanded the use of simpler methods, such as Requests for Qualifications (RFQ) instead of Requests for Proposals. RFQs typically take about half the time to complete, speeding up the process
- Formally recognized disadvantaged business enterprises
- Expanded the definition of small businesses from those with state certifications to include:
NONPROFITS
- Veteran-owned and disabled veteran-owned businesses;
- Businesses with other small business certificates
- Businesses that are not yet State certified but meet the state certification definition;
- A new business category was also added called Social Equity Enterprises (SEEs). These organizations try to advance equity by addressing economic, social and environmental disparities.
The Board’s policy changes will go into effect on Sept. 25.
For more information about applying for the CORE and BUILD programs, visit the County’s Economic Development and Government Affairs website.
For general information on how to do business with the County, visit Purchasing and Contracting.
Reprinted courtesy San Diego County Office of Communications.
