The Illinois Business Enterprise Program awards state contracts to minority-owed businesses.

The program is open to businesses “owned and controlled” by persons in one of the following classes:

• Members of a minority group (MBE),
• Females (FBE),
• Veterans (VBE), and
• Persons with disabilities.

In order to qualify, the enterprise must be certified by the state. They can also be certified by another qualified agency.

Each year, the Program awards millions of dollars in business contracts to Illinois-based companies. These contracts are to provide goods and services to the state.

Who offers the Illinois Business Enterprise program?

The program is offered by:

• The State of Illinois,
• The Illinois Toll Highway Authority,
• The City of Chicago,
• The County of Cook, and
• Other state agencies.

Some private businesses offer similar contracts through their own programs. One example is the Illinois Utilities Business Diversity Council. This council is supported by ComEd, Peoples Gas, and other Illinois-based utility companies.

How do I certify my business in a defined class?

A business seeking certification must submit an application. It must include the required information about the business and its owners. The application must show the business meets the “owned and controlled” test.

The application should be submitted to the Illinois Department of Central Management Services (CMS). You can download the application form from their website.

Other agencies qualified to certify are listed below:

• Chicago Minority Business Development Council
• Women’s Business Development Center
• Illinois Unified Certification Program
• City of Chicago
• Chicago Transportation Authority (CTA)
• METRA 
• PACE
• Cook County
• Airport Concessions Disadvantaged Business Enterprise(ACDBE) or Disadvantage Business Enterprise (DBE)

Where can I find out more about MBE certification?

Contact the CMS at 1-800-356-9206 or any of the certifying agencies for help.

Local community colleges also host seminars and workshops on this program.

You can also pay a private attorney to help with the application. However you probably don’t need this. There are a lot of agencies that can help for free.

How should our MBE company be set up?

You can set up your business as any of the following types:

• Sole proprietorship,
• Partnership,
• Corporation,
• Nonprofit organization, or
• Limited liability company (LLC).

For more information, see our other articles: 

• Starting your own small business
• Creating a nonprofit organization

Remember that the enterprise must be “owned and controlled” by one or more members of the designated class.

What does it mean to be "owned and controlled?"

This includes owners with disabilities. It also includes owners who are part of a minority, female, or veterans. They must own 51% or more of the company. That means 51% or more of the capital stock or LLC membership units and voting control of the entity. At least one of these qualifying owners must also control the company’s management and daily business affairs.

Here is an example. A husband and wife have a business. In order to qualify as a female-owned business, the wife must own 51% or more of the company. She must be able to outvote her husband and control the business.

Applications can still be denied. This is true even if the applicant proves that it is owned by one of the classes above. This usually happens when the applicant cannot show that a member of one of those groups controls the business.

Government auditors can stop by the business unannounced. They can revoke your certification if they find that qualified members do not own and control the company. You could also face criminal charges if the auditors discover a lie on your application. Therefore, you should take the application seriously.

What records should we maintain? 

You should keep all records showing that the qualified owners own 51% or more of the company. They should also hold the most senior position among its officers and directors.

Here is an example.The applicant is a corporation certified as a female-owned enterprise.The articles of incorporation and annual report provided to the Secretary of State should list the woman as the corporation’s president and agent.

The minutes of board meetings should show that the female member presided at meetings. The corporation should authorize the female member to sign checks on the company’s bank account.

On a day-to-day basis, there are further steps to take. The female business owner should sign contracts and other important documents as the president. If the company is at trade shows, the minority leader should show she attended. Having her present at bid openings and important meetings with the customer is also recommended.

A nice office or desk location, and a sign on the desk identifying the person's title also helps. It shows that the female business owner is in control of the business affairs.

If the company works as a contractor on a construction project, the minority owner should visit the site..

The group that the company bases its application on should act as the top person in the company. They should also preserve appropriate records. This is so they can prove it in case questions are raised.