08 May How to Apply for WBE Certification in Chicago
Are you a minority-owned or women-owned business looking to get certified in the Chicagoland area?
MBE + WBE certification can be an important tool to help you gain access to government contracts and resources.
In this blog post, we’ll discuss the ins and outs of getting your MBE/WBE certification in Chicago, from understanding the benefits of being certified, to applying for it, and maintaining certification over time. This is what you need to know to apply for MBE + WBE certification in Chicago.
Table of Contents
What is “WBE Certification” in Chicago?
WBE Certification is a type of certification available only to women-owned businesses that gets you access to certain government contracts and opportunities in Chicago.
Under the City of Chicago local ordinance, “WBE” stands for Women-Owned Business Enterprise (WBE). Women business owners are one group that have access to various set-aside programs and contracts. For example, most city contracts have a goal of 25% for MBEs and 5% for WBEs. WBE goals can advance a WBE firm’s footprint quickly and increase the company’s revenue.
In total, the City of Chicago has 6 certification programs for disadvantaged groups, which are:
- MBE- Minority-Owned Business Enterprise
- WBE- Women-Owned Business Enterprise
- VBE- Veteran-Owned Business Enterprise
- BEPD- Business Enterprise for People with Disabilities
- DBE- Disadvantaged Business Enterprise
- ACDBE- Airport Concessions Disadvantaged Business Enterprise
There are also certification programs with Cook County, the Illinois Department of Transportation, and the State of Illinois (the Business Enterprise Program).
Benefits of WBE Certification
Being a certified Women-Owned Business Enterprise (WBE) in Chicago has its advantages as the distinction opens up many doors for women-owned businesses to access resources and contracts that they may not have had access to before.
Here are the top 4 benefits of WBE Certification:
- Access to set-aside programs + government contracts
- Increased visibility + listed in the directory
- Ability to collaborate + partner with other businesses
- Opportunity to participate in Chicago’s Target Market Program, which allows exclusive bidding and 100% of contracts for certified MBE + WBE
With the benefits of certification outlined, it’s time to explore if you qualify for certification and what the application process looks like.
Who Qualifies for MBE + WBE Certification?
In order to qualify for WBE/MBE certification, a business must meet several criteria set forth by the City of Chicago.
These are the 6 main qualifying requirements for WBE/MBE certification:
- Must be 51% owned, controlled, and managed by a disadvantaged group.
- Must be a local business. The principal place of business must be in the following counties: Cook, DuPage, Kane, Lake, McHenry, or Will. Note that if you applying as a DBE/ACDBE, you can be located anywhere in Illinois.
- Must have below a certain revenue + business size. The 2024 Gross Receipts Limit is $48,681,024.12. This limit is averaged over 3 years for non-construction MBE/WBE/VBE firms. Construction firms are subject to SBA size standards averaged over 7 years.
- Must have below a certain Personal Net Worth. The 2024 Personal Net Worth Limit is $2,767,082.23. This applies to MBE/WBE/VBE construction companies. This number is evaluated annually by the City of Chicago.
- Must have specific business documentation.
- Sole Proprietorship: Owner must submit Assumed Name Certificate if operating in name other than theirs.
- General Partnership: Partnership Agreement required.
- Corporations: The company must be in Good Standing with the State of Illinois, and the following must be submitted: Articles of Incorporation, Certificate of Incorporation, Bylaws, Copes of all stock certificates (front/back), and Meeting Minutes.
- Limited Partnership: You must submit Assumed Name Certification or Certificate of Limited Partnership.
- Limited Liability Company (LLC): You must submit an Operating Agreement, Articles of Organization.
- The owner must have extensive knowledge in management and operations. They should also possess good credit history with no bankruptcies within the past five years.
How to Apply for WBE Certification
The certification process can seem a little overwhelming at first, so it is important to take it one step at a time.
In order to apply for WBE Certification, you must do the following:
After Your WBE Application is Submitted
The review process takes approximately 90 days from the time the City considers all documentation to be “submitted.” Note that this is not usually right after you submit your application. When the City is reviewing your application to make sure your documents are complete, they will interact with you through the online portal by asking you follow-up questions. Only when you are finished answering questions with your City certification officer will that time clock really start.
You may also need to provide references from customers or suppliers depending on what type of business you operate. You may also receive a site visit from the City (all construction suppliers and distributors receive site visits).
Once this review has been completed successfully, you will receive official notification regarding your status as a certified WBE or MBE organization.
Maintaining Your WBE Certification
Maintaining your WBE certification requires staying up-to-date with all the requirements and any changes or updates that may come along. To remain certified, you must also submit an annual “No Change Affidavit.”
If there are any changes to the organization, business name, or ownership, you must notify the City within 10 business days of the change in order to maintain any city certifications.
Top 10 Reasons WBE Applications are Denied
Here are the top 10 reasons why WBE and MBE applications are denied:
- Unsubstantiated or questionable ownership/control.
- Unclear description of critical functions and who is responsible.
- The company cannot substantiate where and/or how start-up funds/expansion capital was initiated.
- Outside secondary employment takes the majority of the MBE/WBE’s time each day.
- The company is not located in one of the six county regions.
- The point of contact did not respond to requests for information in a timely manner.
- Inconsistencies with the Applicant’s firm name among various documents.
- Problems with contracts: missing, incomplete, not signed & executed by qualifying owners, or have no corresponding proof of payments.
- Required documents are not attached or no explanation is given as to why the documents are not available.
- Three/Seven years of tax returns were not submitted (signed) as required.
Working with a Government Relations Firm
If you are looking for additional counsel, working with a government relations firm can be beneficial for any business looking to obtain and maintain its WBE or MBE certification in Illinois.
Elking Consulting creates a tailor-made strategy specifically for you. We keep you in the loop on alterations to laws and regulations that could affect your business, help you make sense of the intricate bureaucracy associated with WBE/MBE certification, fight for your company’s interests from an informed position, and provide invaluable insights into industry trends which could be advantageous to your operations or bottom line.
We also scour for potential opportunities, prepare certification documents for your applications, and guide clients on government reporting and compliance. Having access to experienced professionals who specialize in dealing with governmental entities gives minority-owned and women-owned businesses an edge when competing against larger corporations for contracts or grants from state agencies.
The expertise provided by a qualified government relations firm is invaluable when it comes time to negotiate terms or submit proposals for funding and contract opportunities available through the various City of Chicago programs.
Conclusion
Having WBE or MBE certification with the City of Chicago will open up many opportunities for your business. Ultimately, getting certified will lead to greater business growth and increased revenue.
Feel free schedule a quick call with me, and check out our private Facebook Group dedicated to businesses seeking government contract opportunities in Illinois. Wishing you success on your certification journey!
FAQ's
The Department of Procurement Services. You can check their website for upcoming events, certification opportunities, trainings, and other useful resources.
The following groups qualify for City of Chicago certification:
- African American
- Hispanic
- Asian
- Asian-Indian
- Women
- Veterans
- Persons with Disabilities
- Other individuals who can provide social and economic disadvantages
Choose which certification program is best for you:
- MBE- Minority-Owned Business Enterprise
- WBE- Women-Owned Business Enterprise
- VBE- Veteran-Owned Business Enterprise
- BEPD- Business Enterprise for People with Disabilities
- DBE- Disadvantaged Business Enterprise
- ACDBE- Airport Concessions Disadvantaged Business Enterprise
The application review process takes approximately 90 days from the time the City considers all documentation to be “complete.” It generally takes a business 1-3 months to prepare all documentation.
$250 Application Fee + any consultant costs to prepare your business application documents
For women entrepreneurs, becoming a certified women’s business enterprise offers many benefits and business opportunities. It provides access to exclusive contracting opportunities, networking and business development resources.
Additionally, it increases credibility with customers and suppliers as well as opens up new markets for growth. You can immediately gain greater visibility within the government sector. This can be especially important for small business owners.
Finally, certification also gives WBE firms preferential treatment in a competitive business environment when bidding on public contracts which can result in increased profits over time.
MBEs and WBEs are businesses owned by individuals from an ethnic minority or gender group, respectively, with the former requiring at least 51% ownership by a member of an identified minority and the latter needing to be majority-owned by one or more women. Both MBE and WBE refer to firms that are owned by people from a distinct demographic or gender. MBEs must be at least 51% owned by one or more individuals who are part of an identified ethnic minority while WBEs must be at least 51% owned by one or more women.
The Target Market Program provides exclusive bidding for a certified minority business enterprise and women business enterprise. This program allows the certified businesses to take 100% of the contract awards because there are no subcontractor goals associated with the project.
“Veteran” means a person who has service in the United States armed forces and was discharged or separated under honorable conditions. A DD214 or DD214 are required as supporting evidence. A number of contracts are set aside for VBE.
