Lightfoot announces initiatives to help small, minority and women-owned businesses

Three different programs have been developed to increase capital access, boost payment speed, and increase transparency around the diverse vendors Chicago does business with.

The Prompt Payment Working Group will ensure that City vendors are compensated for their services in a timely and effective manner.

The Vendor Impact Fund is a program that aims to address long-standing systemic inequities by providing eligible businesses with more affordable financing options. 

"All of these measures build on the many actions we have taken to help our local small and mid-sized businesses, especially those who have traditionally been left out and behind," Chicago Mayor Lori Lightfoot said in a press release. 

The $25 million fund would make Paycheck Protection Program and SBA 7(a) loans available to eligible applicants. The Prompt Payment Working Group was established to ensure that City vendors are paid promptly and efficiently.

Vendors and contractors that meet the criteria should apply at www.ChicagoImpactFund.com. The application period is now free. PPP applications must be submitted by the federal deadline of March 31.

The Working Group on Prompt Payment will look at the possibility of upfront or other alternative payment solutions.

Executive order issues reporting requirements for company spending and diverse program initiatives

An executive order issued Wednesday requires more detailed reporting on spending with local accredited companies and company diversity programs. 

"For too long, minority-owned businesses ... have been taken for granted," said 17th Ward Alderman David Moore, according to a news release. "The initiatives being announced today provide a level playing field and show how important these partners are to this City.”

Lightfoot will receive the working group's recommendations no later than June 30.

The mayor's executive order, the Vendor Impact Fund, and the Prompt Payment Initiative, according to Emilia DiMenco, President and Chief Executive Officer of the Women's Business Development Center, are "major steps that will move us forward."