Women’s Business Enterprise Loan Program
Ohio Department of Development
Ohio Senate Bill 105 - Require political subdivision recognize state MBE certification is effective as of June 1, 2022.
Governor Mike DeWine signed into law Senate Bill 105, legislation introduced by state Senators Vernon Sykes (D-Akron) and Kirk Schuring (R-Canton) to require political subdivisions to recognize state certifications of minority business enterprises (MBEs), women-owned business enterprises (WBEs) and veteran-friendly business enterprises (VBEs). This legislation will make it easier for minority-owned businesses to access more opportunities, make doing business more efficient and boost the overall business climate in Ohio. I’m grateful for the support this legislation has received throughout the process, and I’m incredibly pleased that it will now become law.”
Senate Bill 105 allows MBEs to rely on their state MBE certification to be eligible to participate in local MBE programs. It would also allow MBEs to use their certification from the Department of Development for local government certifications throughout the state. This greatly simplifies the local MBE certification process, saving time, paperwork and fees for minority-owned businesses. It also allows MBEs to apply more easily for contracts around the state.
The thrust of the bill: Requires political subdivisions to accept the state’s certification of a Minority Business Enterprise, Women-owned Business Enterprise, or Veteran-friendly Business Enterprise as proof of certain eligibility criteria for comparable local programs and initiatives.
The bill allows a person who has been certified as a Minority Business Enterprise (MBE), a Women-Owned Business Enterprise (WBE), or a Veteran-Friendly Business Enterprise (VBE) by the Department of Development (DEV) to present that state certification to a political subdivision as evidence that the person qualifies for programs the political subdivision has to:
- Increase involvement for these enterprises in business opportunities, and
- Set aside a certain amount of public contracts to award to MBEs, WBEs, or VBEs.
The bill requires political subdivisions with comparable MBE, WBE, and VBE programs to accept a state certification as evidence that the applicant meets the relative criteria indicated on the state certification, and that the applicant meets ownership and control requirements under the Revised Code. The bill does not preclude subdivisions from having additional requirements that must be met to qualify for MBE, WBE, or VBE business initiatives and does not require political subdivisions to certify state-certified MBEs, WBEs, or VBEs under any comparable program
S.B. 105 requires political subdivisions to allow MBEs and WBEs to complete for contracts previously reserved for EDGE businesses only. It does not. S.B. 105 merely requires political subdivisions to accept a state MBE, WBE, or VBE certification as evidence of a business’s eligibility to participate in comparable local programs and special initiatives. The qualifications for EDGE businesses are distinct from MBE, WBE, or VBE businesses. For example, EDGE businesses must demonstrate both social and economic disadvantage to qualify for certification, whereas, the WBE certification requires no comparable proof of economic disadvantage. S.B. 105 preserves the ability of the state and its political subdivisions to have distinct eligibility requirements for comparable programs and to differentiate between EDGE, MBE, WBE, and VBE businesses.”