Targeted Business Enterprise Programs

The Targeted Business Enterprise (TBE) programs work to ensure Small, Minority & Women Business Enterprises, maximize their opportunity to compete for City contracting and procurement opportunities.

The City of Madison has adopted an affirmative action plan and requires similar efforts from vendors, contractors and other firms with which it does business. The City has determined that it is not in the public interest to purchase goods and services from vendors and contractors unless they demonstrate that they have taken affirmative action to ensure equal employment and subcontracting opportunities.
It is the official policy of the City of Madison that as an overall goal, ten percent (10%) of the City’s Public Works funds be expended with certified Small Business Enterprises (SBE).

This policy is designed to stimulate economic growth, promote the establishment of new businesses and provide employment opportunities. In addition, when the City expends funds provided to it by federal agencies, the City requires that contractors comply with applicable federal regulations governing the participation of:

  • Minority Business Enterprises (MBE)
  • Women Business Enterprises (WBE)
  • Disadvantaged Business Enterprises (DBE)

Furthermore, it is the City’s policy that all businesses, including those owned by minorities and women, be afforded the maximum feasible opportunity to do business with the City.


  • Small Business Enterprise (SBE) - an independently owned and controlled business with annual gross receipts of $4 million or less when averaged over the past three years. In addition, a personal net worth maximum of $1.32 million dollars was introduced into the program.
  • Minority Business Enterprise (MBE) - an independent business 51% or more owned and controlled by racial/ethnic affirmative action group members.
  • Woman Business Enterprise (WBE) - an independent business 51% or more owned and controlled by women.
  • Disadvantaged Business Enterprise (DBE) - an independent business 51% or more owned and controlled by socially and economically disadvantaged individuals. Size restrictions as regulated by the U.S. Small Business Administration in 13 CFR apply.
  • Section 3 Business Concern - A Section 3 Business Concern must meet one of the following criteria in the last 6 months: at least 51% owned and controlled by low income or very low income persons; or over 75% of labor hours performed for the business over the prior 3 month period are performed by Section 3 Workers; or at least 51% owned and controlled by current residents of public housing or Section 8 assisted housing.

The bid document will specify which targeted business (MBE, WBE, DBE and/or SBE) is being targeted for a specific contract. In general, the targeted business type is determined by the source of funding. Public Works contracts estimated to cost $100,000 or more that are funded solely with City dollars will have an SBE goal attached. Projects with federal monies will have a MBE, WBE and/or DBE goal attached.


  • Please note that all businesses listed as Minority, Women or Disadvantaged Businesses can be used in both the Dane County and the City of Madison Targeted Business Enterprise Programs.
  • Businesses listed as Small Business Enterprises can be used only on City of Madison projects.
  • Businesses classified as Emerging Small Business Enterprises can be used only on Dane County projects.

Affirmative Action team members administer our Targeted Business Enterprise Programs, including:

  • Small Business Enterprise (SBE) Program for Public Works projects, and Non-Public Works City financed projects,
  • Minority Business Enterprise (MBE) Program for HUD funded projects,
  • Women Business Enterprise (WBE) Program for HUD funded projects,
  • Disadvantaged Business Enterprise (DBE) Program for USDOT, FTA, EPA, and HUD funded projects.
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