SPRINGFIELD, IL – Illinois State Senator Mattie Hunter (D–Chicago) passed legislation through the Senate today creating the Small Business Contract Act, which will award ten percent of State contracts to small businesses.

"Small businesses are the backbone of our economy and we need to support them every way possible," Hunter said. "This measure will guarantee that small businesses are not overlooked when it comes to awarding State contracts."

House Bill 3186 also mandates that State agencies must provide an annual compliance plan outlining goals to contract with small businesses for each fiscal year. Agencies must also include an annual report on the utilization of the contracts with small businesses and a self-evaluation of efforts to meet their goals.

The measure is in addition to the Small Business Set-Aside (SBSA) program already in the Illinois Procurement Code, which states that all contracts under $50,000 should be awarded to small businesses. Contracts are awarded depending on limitations defined in the Procurement Code, such as that wholesale and construction businesses cannot exceed $10 million in annual sales, retail businesses cannot exceed $6 million in annual sales, and manufacturing businesses cannot employ more than 250 people. House Bill 3186 keeps those same limitations.

"House Bill 3186 will ensure that we are using local, tax-paying businesses to rebuild and grow our economy," Hunter said. "Small businesses take pride in their product and we thank them for continuing to build their products and provide their services to the people of Illinois."

House Bill 3186 passed both chambers and currently awaits Governor Quinn’s signature.