A New Rule Change Could Mean a Multibillion-Dollar Windfall for New York City’s LGBTQ Businesses

It’s been a good week for equality. Just hours after taking the oath of office Wednesday, President Biden issued an executive order bolstering Title VII of the Civil Rights Act of 1964 to require that the federal government does not discriminate on the basis of sexual orientation or gender identity. 

And, at the local level, New York City’s Department of Small Business Services announced Tuesday that it would recognize LGBTQ business owners as minorities, a decision that will grant them a competitive advantage when bidding for contracts with the city, which will spend up to $17 billion on contractors this year. 

At least 30 percent of that giant pot will go to women- and minority-owned businesses in 2021, according to a pledge made by Mayor Bill DeBlasio in 2016. That appears to be an attainable goal: In fiscal year 2020, 28 percent of the city’s procurement budget went to such businesses. 

Qualified businesses–those with at least 51 percent LGBTQ ownership–must certify with the National LGBT Chamber of Commerce (NGLCC) in order to bid for a contract.

“Equity of access and inclusion are at the core of the work we do at SBS,” says Jonnel Doris, commissioner of the NYC Department of Small Business Services in a press release announcing the decision. “A diverse vendor pool makes a stronger New York City, and we are excited to maximize the inclusion of LGBTQ certified firms into the city’s certification process.”

New York City joins a growing list of American cities–including Los Angeles, Baltimore, St. Louis, Chicago, Orlando, and Nashville–that recognize NGLCC-certified businesses as minority-owned when awarding contracts. 

The historic decision is a long time in the making. “I’ve been here in my role, leading public policy, almost six years, says Jonathan Lovitz, senior vice president of the NGLCC. “And in that time, we went from just three cities and states that recognized LGBTQ people as part of the minority business community in the public sector, to now over 25 cities and states, with a lot more on the way in 2021.”

Lovitz says that the rise in support from state and local governments is due in large part to the strength and power of LGBTQ entrepreneurs, citing the $1.7 trillion their businesses contribute to the U.S. economy. 

Access to city contracts isn’t the only advantage being unlocked for LGBTQ business owners in New York City. The city’s Small Business Services department has for years offered training and educational programs on everything from writing a business proposal to seeking funding. An entire subset of those programs is focused on women and minority owners, and now those programs can also be specialized for LGBTQ entrepreneurs. Plus, Lovitz says, more than a third of the Fortune 500 make it a priority to work with minority-owned businesses.