Mayor Lori Lightfoot Announces Plan To 'Level The Playing Field' For City Contractors Owned By Women, Minorities

CHICAGO (CBS) -- Mayor Lori Lightfoot on Wednesday announced a new initiative to help "level the playing field" for minority- and women-owned businesses that hold city contracts, give them better access to the capital they need, and speed up payments from the city.

"The change we need and the change we want doesn't just happen. We must be intentional to make it happen," Lightfoot said Wednesday afternoon. "At its core, what we're announcing today will help level the playing field for both current and future businesses that do business with the city of Chicago, and in so doing better support our communities and better serve our residents and businesses who rely upon city services every single day."

The mayor's plan includes the creation of a $25 million "Vendor Impact Fund," which would give qualified firms owned by women, minorities, veterans, or people with disabilities better access to affordable financing.

The fund would help businesses obtain Paycheck Protection Program loans and Small Business Administration loans.

The program would be funded with $10 million in financing from the nonprofit Community Reinvestment Fund, $14.3 million from Goldman Sachs, and $1.2 million from the city of Chicago.

Eligible businesses can apply at www.ChicagoImpactFund.com.

In addition, Lightfoot announced the creation of a Prompt Payment Working Group designed to speed up payments from the city to contractors for the services and supplies they provide.

Lightfoot said as far back in 2005, when she was Interim First Deputy of the Chicago Department of Procurement Services, she heard many complaints about slow payments from the city to its vendors.

"Unfortunately, that reputation and reality is still with us today – almost 15, 16 years later – and I aim to end that problem," she said.

The working group, comprised of representatives of multiple city departments, will be tasked with reviewing existing city contracting policies in an effort to reduce inefficiencies that slow down payment times.

The mayor's office said initial efforts already have identified "bottlenecks in tow areas" that are being addressed to allow for more frequent payment distributions.

The working group will be tasked with presenting the mayor with recommendations on how to speed up payments to vendors by June 30.

Lightfoot also issued an executive order requiring contractors that do business with the city to submit quarterly reports on their efforts to work with minority- and women-owned businesses to meet the city's set aside goals. Reports must include a comparison of projected usage of those firms with actual usage, including a recovery plan if they fall short of their goals.

In addition, vendors with city contracts must submit annual reports detailing how much they have spent on goods and services from companies owned by women and minorities.

"This transparency requirement will give us for the first time a glimpse into who we are doing business with, and whether they share our values around building an equitable and inclusive economy. In sum, we want companies to go beyond statements and put their money where their mouth is," Lightfoot said.