Erie County Executive Mark Poloncarz signed the Small Business Enterprise Utilization Act into law Thursday, a move officials say will give local small businesses a better shot at winning county contracts they've historically struggled to land. The law gives Erie County-based small businesses preference on contracts worth less than $35,000, giving thousands of local firms a new foothold in a procurement process long dominated by larger players.
A Law Years in the Making From a Local Lawmaker
The measure was first proposed by Erie County Legislator Taisha St. Jean Tard, who represents the county's 2nd District, according to Buffalo Toronto Public Media. As of two weeks ago, the passed act still needed either Poloncarz's signature or a legislative supermajority to take effect, the outlet reported at the time. With Poloncarz's signature now in place, the law formally encourages greater small business participation in county contracting, according to the seed reporting from Niagara Frontier Publications.
Under the law, eligible small businesses located in Erie County may bid on and procure county contracts valued from $20,000 to $35,000, per that same reporting. News 4 Buffalo had earlier described the policy in similar terms, reporting that qualifying businesses would receive preference in public works contracts up to $35,000 and in purchases of supplies and equipment up to $20,000, according to News 4 Buffalo.
Who Qualifies as a Small Business Under the New Law
To qualify, a business must have its principal place of business physically located in Erie County, perform a commercially useful function, and not be affiliated with a franchise. The law caps eligibility at businesses employing from zero to 49 workers, including sole proprietorships, with gross annual revenue of not more than $5 million. News 4 Buffalo separately described qualifying businesses as having fewer than 50 employees.
Erie County has approximately 21,000 small businesses with 49 employees or fewer, and county leaders have said that businesses of that size are represented infrequently in the county's procurements of goods, commodities and professional services. BTPM separately reported that county leaders estimate more than 20,000 qualifying businesses exist countywide — figures that point to the same broad population of local firms the law is designed to reach, even if the precise count varies between accounts.
Officials Frame the Law as a Boost for the Local Economy
Poloncarz said the law expands opportunities for local small businesses and that county contract funds will return to the community through payroll and spending. He added that there are some small businesses who could use a little assistance when it comes to obtaining contracts from Erie County, and that they should have a chance to participate in the process, per the same account. He also said adjusting the bidding process opens the door to more small business involvement, benefiting the county overall, and he thanked St. Jean Tard for her work supporting local small businesses.
St. Jean Tard said the local law enables Erie County to spend its funds in a way that supports local small businesses and keeps more money circulating in the local economy. That spending, she said, contributes to local employment and the tax base.
How Erie County's Thresholds Compare Statewide
New York's competitive sealed-bidding thresholds for local governments statewide sit at $20,000 for purchase contracts and $35,000 for public works contracts, according to testimony from the New York State Association of Counties. Erie County's new preference law operates within the existing statewide thresholds rather than changing them, giving local small businesses a competitive edge inside the current dollar limits.
