DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Briefing and possible action on Small Business Economic Development Advocacy (SBEDA) Significant Business Presence Criteria.
SUMMARY:
The City's SBEDA program incentivizes small, minority-, and women-owned business enterprises (S/M/WBEs) on City contracts with the primary goal of remedying racial disparities outlined in the 2015 disparity study. Economic Development Department (EDD) solicited input from the San Antonio small business community and stakeholders regarding the current SBEDA eligibility criteria that allows businesses not headquartered in the San Antonio Metropolitan Statistical Area (SAMSA) to be eligible for the incentives. Based on survey results and community feedback, staff recommends amending the SBEDA Ordinance to limit the benefits to businesses headquartered in the San Antonio metro area and those currently meeting the criteria for significant business presence.
BACKGROUND INFORMATION:
To qualify for incentives under the SBEDA ordinance, businesses must be certified by the South Central Texas Regional Certification Agency (SCTRCA) and be headquartered or have significant business presence in the San Antonio metro area. Currently, businesses not headquartered in the SAMSA can demonstrate significant business presence if they maintain a branch location for one year and at least twenty percent of total employees are based in that branch location.
The original intent of including the significant business presence eligibility criteria in the SBEDA program was to increase local economic activity and provide mentorship opportunities to local firms by offering SBEDA incentives and benefits to small, minority women businesses outside of the San Antonio Metropolitan Statistical Area to establishing a local branch. At the request of the business stakeholders and community members and due to current economic conditions, ...
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