Understanding the Illinois Small Business Set Aside Program

Illinois’ Small Business Set-Aside Program (SBSP) exists to help small businesses in Illinois build their credibility and achieve higher revenues. Operated by the Chief Procurement Office, the program awards millions of dollars to small businesses in the supply and service industries each year.

The state of Illinois has identified 120 procurement categories that have been set aside for small businesses registered with the SBSP. In addition to these, all awards by the state of less than $50,000 have been set aside for qualified small businesses. According to the State of Illinois website, the program awarded nearly $65 million to Illinois small businesses last year.

In order to qualify for the SBSP, businesses must operate within the state of Illinois and meet certain gross sales requirements. These numbers are as follows:

Service and retail businesses must have annual gross sales of less than $6 million;

Wholesale businesses and construction firms must have annual gross sales of less than $10 million;

Manufacturing firms must have annual gross sales of less than $10 million and less than 250 employees.

Businesses wishing to apply for the SBSP can sign up through the program’s website. Companies should receive a notice of qualification within five to 10 business days, and once received, qualification is valid for three years. If a business’ annual revenue grows beyond the limits of the SBSP, they are expected to notify program administrators as soon as possible. Those who do not may be listed as ineligible from receiving state contracts for up to five years and charged with a Class A misdemeanor.

If you have questions about the SBSP or any other element of Illinois business law, it is important that you receive professional help. Contact a qualified Illinois business attorney experienced in small business matters for help today. We will be happy to answer any questions you may have.

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Please note: These blogs have been created over a period of time and laws and information can change. For the most current information on a topic you are interested in please seek proper legal counsel.

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