Locally Based Enterprise (LBE) Certification Program

The Locally-Based Enterprise (LBE) Certification Program helps businesses in poor areas of the city. It also helps businesses that hire economically disadvantaged people. These businesses get at least 10 percent of subcontracting opportunities on City construction jobs.

Certified businesses get:

• More chances to get contracts
• Chances to go to classes and network with others
• Help to compete for contracts
• A spot in the City's online directory of certified businesses, which promotes LBE businesses to buyers

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 cannot apply.
• Allowed to do business in New York State.
• Doing at least 25 percent of its work in an economically depressed area in New York City or hiring a workforce of which at least 25 percent are economically disadvantaged people.
• Making less than $2 million a year from all construction and related work in the last three years. If the business has been open for less than three years, the average earnings for all years in which taxes were filed must be less than $2 million.
• Selling products or services for at least one year before applying.

If a business is LBE certified with the NYC Department of Small Business Services' partner, New York City School Construction Authority, it may be eligible for a Fast Track Application. Businesses that have applied for LBE Certification before or are under review with the City of New York cannot apply for a Fast Track Application. Before starting this application, businesses should contact the organization with which they are certified to see if they qualify for a Fast Track Application.

• Gather the required documents:

  • Resumes for all business owners

  • Bank letters with account details and signers

  • A financial statement for the last year

  • Tax returns for the last three years

  • Personal tax returns of each owner for the last three years

  • Proof of citizenship or resident status for each owner

  • Licenses and permits held by the business

  • Lease agreements or proof of ownership for all business locations

  • Three or more agreements from the past two years

  • Registration documents for any business vehicles

  • Proof of three or more sources of investment in the business

  • Business start details showing initial funding

  • Accountant’s verification of gross receipts

  • Additional documents may be needed based on your business type:

    • Sole proprietorships and general partnerships using a trade name must file a Business Certificate with the county clerk.
    • Partnerships must provide a partnership agreement and a business certificate.
    • Limited partnerships (LPs) and limited liability partnerships (LLPs) must provide a partnership agreement and a state filing receipt.
    • Limited liability companies (LLCs) must provide an LLC Organizational Agreement, LLC Articles of Organization and a state filing receipt.
    • Corporations must provide Articles of Incorporation, corporate bylaws and a state filing receipt.
    • Businesses using a trade name must provide a Certificate of Assumed Name.

• Provide details of recent gross receipts by filling out the appropriate document

• Fill out additional forms if needed
  If applying based on economic or social disadvantage, fill out the appropriate forms.

• Register as a vendor with the City of New York
  Create an account on the Payee Information Portal.

• Register with PASSPort
  Create an account on the PASSPort portal.

• Have an Employer Identification Number (EIN)
  Sole proprietors without an EIN may use a Social Security number (SSN).

• Attend free certification workshops
  If you need help, check the Business Courses page for details.

• Track your application: Use SBS Connect to check your application status. Sign in to your account and view your application on the My Records page.

• Notification: NYC Small Business Services will tell you their final decision.

• Appeal process: If they deny your application, you can appeal. The denial notice will tell you how to appeal.

• Locally Based Enterprise (LBE) certification validity: LBE certification is valid for up to three years from the date on the confirmation letter.

• Annual affirmation form: To maintain your business’ LBE status during certification, you must submit an affirmation form each year to confirm there have been no major changes in ownership, operation or control of the business. The affirmation form is mailed out yearly ahead of the anniversary of the business’ certification. You can also submit annual affirmations via SBS Connect.

• Change of authorized representative: To change your authorized representative, email to the Small Business Services (SBS) Certification Unit at mwbe@sbs.nyc.gov. Please provide your business contact details and use the subject line “Change to Authorized Representative.”