Andrew Cuomo Unveils Proposal to Expand Opportunities for City MWBEs
Plan sets historic 35% NYC MWBE contracting goal and a goal of having 35% of NYC pension fund assets managed by MWBE firms
Governor Andrew M. Cuomo, candidate for Mayor of New York City, today announced a bold proposal to significantly expand opportunities for Minority- and Women-Owned Business Enterprises (MWBEs) across the five boroughs. The plan sets a new citywide M/WBE participation goal of 35% for eligible contracts and aims for 35% of NYC Public Pension Fund assets to be managed by MWBE asset managers.
Details of the proposal include:
Raises the Bar for MWBE Participation Goals
Cuomo’s proposal outlines a roadmap to strengthen our city MWBE program and financing tools that will ensure that New York City truly achieves a 30% participation rate while raising that goal to 35% by 2030.
Increase Transparency Within City MWBE System
Cuomo will overhaul MWBE reporting to establish a standardized, transparent accounting system that clearly reflects actual MWBE utilization. Conflicting reports between the Mayor’s Office and the Comptroller have obscured the City’s true MWBE performance. Increased transparency will also shine a light on disparities within the program—particularly the chronic underrepresentation of Black- and Hispanic-owned businesses in City contracting.
Make Pension Funds a Partner in Advancing MWBE Goals
As Mayor, Andrew Cuomo will direct his appointees on New York City Pension Fund boards to achieve a goal of having 35% of pension fund assets managed by MWBE asset managers, reforming a sector that historically has had low MWBE participation.
Streamline and Simplify the City’s MWBE Program to Increase Participation
Cuomo will institute several procedural changes and expand funding to strengthen the City’s program including:
- Institute a universal application across all “Fast Track” certification partners to streamline the certification process with a 45-day turnaround time.
- Expansion of the SBS mobile unit (“Mobie”) to create pop-up resource centers in key commercial corridors across all five boroughs.
- Improvements to the NAICS (North American Industry Classification System) identification process, helping firms accurately reflect their business categories to utilize existing capacity and grow market share.
- Provide quarterly previews of major RFPs, including virtual sessions by firm size and industry to ensure MWBEs have ample time to prepare and compete.
Expand and Strengthen Financing Programs to Meet City Utilization Goals
Cuomo’s plan will expand the New York City Minority Business Enterprise Guaranty Facility to increase the capacity to provide MWBEs with low interest rate loans. The City will double its commitment to the Facility from $25 million to $50 million.
Assist MWBE Firms in Expanding their Businesses Outside of Government Contracting
The Mayor’s Office of MWBE will work hand-in-hand with NYCEDC to launch business incubator programs that will help start Black and Hispanic owned businesses and continue to support these firms as they grow.
There are roughly 20,000 Black- and Hispanic-owned businesses across the five boroughs, but far too few of them ever grow from small businesses into medium-sized or large businesses. With a focused economic development strategy for Black- and Hispanic-owned businesses, it would help build wealth in communities of color, produce more good jobs for New Yorkers of color, and create a new class of investors in the next generation of Black and Hispanic entrepreneurs.
As Governor of New York, Andrew Cuomo built one of the nation’s most aggressive MWBE programs. In 2014, Governor Cuomo set a 30% MWBE utilization goal in State contracting opportunities. By FY2020-21, the utilization rate for Minority and Women-Owned Business Enterprises (MWBEs) participating in State contracts increased to 30.51% - exceeding the 30% goal for the first time. To achieve this, the Cuomo administration expanded and streamlined MWBE certification programs, launched a statewide certification campaign, and ensured MWBEs were leaders in massive state infrastructure projects including the redevelopment of LaGuardia and JFK airports.
Photos from Event Here
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