Locally Based Enterprise (LBE) Certification Program
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The Locally-Based Enterprise (LBE) Certification Program works to ensure that firms, regardless of the gender or ethnicity of the owner, doing business in economically deprived areas of the City or employing economically disadvantaged persons, receive no less than 10% of subcontracting opportunities on construction and construction-related contracts directly awarded by the City to contractors.
Certified businesses obtain greater access to, and information about, contracting opportunities through classes, networking events, and targeted solicitations. They receive technical assistance to better compete for contracts and benefit from inclusion in the City's ONLINE DIRECTORY OF CERTIFIED BUSINESSES. The directory promotes LBE businesses to purchasers.
To be eligible for LBE Certification, a business must be:
- A Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Company or Corporation. Not-for-Profits are ineligible.
- Authorized to do business in New York State.
- Performing at least 25% of its work in an economically depressed area in New York City, or employ a workforce of which at least 25% are economically disadvantaged persons.
- Earning annual gross receipts of less than $2 million for all construction and construction -related work within the last three years. If the business has been in operation for less than three years, average gross receipts for all years in which taxes were filed must be less than $2 million.
- Selling products or services for a period of at least one year prior to the date of application.
Note: If a business is LBE certified with the NYC Department of Small Business Services' partner organization, New York City School Construction Authority, the business may be eligible to submit a Fast Track Application. Businesses that have previously applied for LBE Certification or are currently under review with the City of New York are not eligible for a Fast Track Application. Before beginning this application, businesses should contact the organization with which they are certified with to find out whether they qualify for a Fast Track Application.
Free
Free
Up to 3 Years
Gather the documents you will need to complete the process. Click "more info" for a list of the required documents, or download the checklist as a PDF.
- Resumes for everyone who has ownership interest in the business.
- Bank letters including account numbers, a list of those authorized to sign on the account, and any limitations to a signer's authority.
- A financial statement detailing the most recent fiscal year, including a balance sheet or profit-and-loss statement, and describing all cash flows.
- The business' federal, state, and city signed tax returns for the most recent tax three years, including all schedules.
- Personal federal, state, and city tax returns of each owner for the prior three years, including all schedules. All W-2 forms must total to the amount listed on Line 7 of the IRS form 1040, including spouse's W-2s.
- Proof of U.S. citizenship or permanent resident alien status for each owner.
- Licenses and permits which the business holds.
- Lease agreements or proof of ownership for all business locations, which must be valid for at least six months after the date of application.
- Three or more agreements from the past two years, showing business activity, displaying the company's name and address, and reflecting services provided by the company to a client.
- Registration documents for any vehicle used for business purposes.
- Proof of three or more sources of investment or capitalization in the business, from the past two years.
- Business start details demonstrating how the business was initially capitalized.
- Accountant's verification of your statement of gross receipts.
The following documents may also be required, based on the structure of your business:
- Sole Proprietorships and General Partnerships operating under a trade or doing-business-as name (DBA) must file a Business Certificate for Sole Proprietorships and General Partnerships with the clerk of the county in which the business is conducted.
- Partnerships must provide a partnership agreement, and a business certificate as filed with county clerk.
- Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs) must provide a partnership agreement and a state filing receipt, including any amended receipts.
- Limited Liability Companies (LLCs) must provide an LLC Organizational Agreement and LLC Articles of Organization, a state filing receipt, including any amended receipts, and any membership certificates, front and back, as well as the next un-issued certificate.
- Corporations must provide Articles of Incorporation, corporate bylaws, a state filing receipt, including any amended receipts, and stock certificates, front and back, as well as the next un-issued certificate.
- Businesses operating under a trade name or doing-business-as name (DBA) must provide a Certificate of Assumed Name, as filed with the County Clerk. Learn more here.
Applicants must provide details of their recent gross receipts. Please fill out this document and have it ready when you apply: Gross Receipts (PDF).
Fill out the following two forms if you are applying for this certification based on the economic or social disadvantage of your employees: LBE Disadvantaged Status (PDF) and LBE Employees (PDF).
Businesses must be a registered vendor with the City of New York. To register, you must create an account on the Payee Information Portal.
Businesses are required to register with PASSPort. To register, you must create an account on the PASSPort portal.
Businesses must have an Employer Identification Number (EIN). Sole Proprietors that do not have an EIN may use a Social Security Number (SSN). Learn more about employer identification numbers here.
Free certification workshops are available if you need any help with this process. Check the Business Courses page for details.
Use SBS Connect to track the status of your application. Sign in to your account and view your application from the My Records page.
NYC Small Business Services will notify you of its final determination.
If your business' application is denied, you have a right to appeal the decision. The Instructions for the appeal process will be included in the denial notification from NYC Small Business Services.
LBE certification is valid for up to three years from the date on the confirmation letter.
In order to maintain your business' LBE status during the certification period, you are required to submit an affirmation form each year to confirm that there have been no material change in ownership, operation, or control of the business. The affirmation form will be mailed out every year prior to the anniversary date of the business' certification. Annual affirmations can also be submitted via SBS Connect.
Requests to change your authorized representative should be emailed to the SBS Certification Unit at mwbe@sbs.nyc.gov. Please provide your business contact details, and use the subject line: "Change to Authorized Representative".
Gather electronic copies of your supporting documents.
To submit a standard or Fast Track application, click on the Apply Online button.
If you do not have electronic copies of your supporting documents, you may mail them to SBS within 30 days of submitting an online application.
Use SBS Connect to renew a certification online. You will need to submit an abbreviated version of the certification application.
If you have any questions regarding renewal, please email the SBS Certification Unit at MWBE@sbs.nyc.gov. Please include your full name, contact details and certification status along with your inquiry.
NYC Department of Small Business Services (SBS)
Division of Economic and Financial Opportunity
1 Liberty Plaza, 11th Floor
New York
NY
10006
LBE Certification Program
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