Leroy Belona thought certifying his Providence construction company through the state’s Minority Business Enterprise program would open the door to more opportunities.
But in the decade since he started B & D Veteran’s Corp., he hasn’t seen many benefits. The process to submit bids for city or state contracts is riddled with red tape, and as a one-man operation – he only hires workers if he has a big job – Belona must wade through complex insurance and bonding paperwork himself.
Usually, he decides it’s not worth it to even try. And when he does?
“It gets a little hectic,” Belona said. “And then, I might still get denied the contract.”
Well aware of the shortcomings of the MBE program, including routinely failing to meet the minimum 10% participation rate mandated by law, the state has started to make changes. Now, the city of Providence is looking to follow suit.
As part of its $10 million racial reparations program, the city set aside money to improve its own women- and minority-owned business contracting program. Specifically, the budget includes $300,000 to hire a consultant to study and make recommendations on disparities between the number of minority-owned businesses in the city and the actual city dollars awarded to these businesses. Another $245,000 would pay for a recruitment and technical support program to help more eligible women- and minority-owned businesses get certified, with the goal of adding another 100 to the list by the end of the year.
Lack of awareness and difficulty completing the certification paperwork is a main reason the city has not met its 20% minority- and women-owned business participation goal in most years, according to Keith Stokes, the city’s former business and development director. Case in point: There are currently 110 certified Providence women- and minority-owned businesses, which Stokes called a “significantly low number” for a city where nearly half of the residents identify as people of color.
With a limited list of certified businesses, and most of them concentrated in certain industries such as construction, it’s nearly impossible for the city to meet its annual participation requirement, Stokes explained. Indeed, the city only hit 20% once in the last seven fiscal years – in 2020. Many years, less than 4% of contract and purchase dollars awarded went to minority- and women-owned businesses, although in fiscal 2022 (the most recent available) it jumped to 15%, according to data shared by the city.
Low minority-business participation was no surprise to Lisa Ranglin, CEO and president of the Rhode Island Black Business Association. While she welcomed the city’s efforts to make it easier for Black businesses to get certified, she thought the disparity study was a waste of time.
“We have studied and analyzed all of these challenges for decades,” she said. “I don’t care how much you have studied the thing – if you don’t have Black or brown businesses able to participate, you’re always going to have the same problem.”
Indeed, the state released its own MBE study in 2021, which spanned contracts and purchases awarded to minority- and women-owned businesses across all cities and towns, including in Providence.
Dwayne Keys, a member of the Providence panel that helped develop the racial reparations spending plan, initially shared Ranglin’s skepticism about the need for another study.
“If it’s the same study we’ve already had, I am going to be extremely disappointed and very frustrated with the waste of dollars,” Keys said.
But Keys was somewhat convinced after Stokes pitched the Providence Municipal Reparations Commission on the need for updated data that includes the pandemic; the state study reflected contracts awarded from fiscal 2014-2017.
Stokes also said it was important to have city-specific data (the state study does not break out Providence businesses) to back up any recommended changes to the program.
Although Stokes was the driving force behind funding for the study and the certification program, he stepped down from his job when the new mayor took office. Meanwhile, the city has closed its bids but not hired a consultant for each of the solicitations related to its women- and minority-owned business enterprise program.
With Stokes gone and no replacement named, Ranglin worried that any efforts to understand or improve access to and participation from minority businesses could fall by the wayside.
Mayor Brett Smiley and members of his administration were not available to comment.
Meanwhile, Belona was eyeing an upcoming city project to demolish and redevelop the former Urban League of Rhode Island building. The plans are still in the preliminary phases, and the initial solicitation will be to hire a consultant to gather community feedback.
But Belona hoped that by the time the city was looking to award contracts for demolition and construction work, there might also be more support for minority-owned businesses.
“I would definitely welcome some help with the paperwork,” he said.
