Tallahassee Shifts Business Program to Neutral Model

The OEV is replacing its minority-focused program with a new small business model to comply with upcoming Florida state law.

Updated on Oct. 20, 2026 in Business — General

Isometric editorial illustration of modular blocks of varying sizes representing a shift in business classification policy.
The Tallahassee-Leon County Office of Economic Vitality is transitioning its business certification programs to a neutral, size-based model to comply with Florida law. AI Illustration. Upload story photo >

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The Tallahassee-Leon County Office of Economic Vitality is transitioning its Minority Women and Small Business Enterprise program to a race- and gender-neutral Small Business Enterprise program. This change follows Florida state law SB 1134, which prohibits local governments from funding or promoting DEI-related initiatives.

Why it matters

The transition ensures local programs adhere to new Florida mandates while establishing objective size-based eligibility requirements. These adjustments prevent potential legal challenges under the new law, which allows residents to sue local governments for violations.

Eligibility for the new Small Business Enterprise program requires firms to have 200 or fewer employees and a net worth of $5 million or less. The Intergovernmental Agency Board has set an aspirational participation goal of 15% for the new program.

The players

Tallahassee-Leon County Office of Economic Vitality

This agency oversees economic development and business support services for the City of Tallahassee and Leon County.

Intergovernmental Agency Board

This board provides policy oversight and governance for shared inter-local economic initiatives in the Tallahassee region.

The details

The Office of Economic Vitality is updating internal systems, staff roles, and contract compliance processes to shift from identity-based criteria to a model focused strictly on business size. Existing certified businesses will maintain their current status through the end of fiscal year 2027.

Timeline

  1. September 2026: The Intergovernmental Agency Board approved the new SBE policy.

  2. Fiscal Year 2027: Currently certified MWSBE businesses will maintain their status.

  3. January 1, 2027: Florida state law SB 1134 takes effect.

Market Landscape

This program transition reflects a broader shift among Florida municipalities as they restructure procurement frameworks in response to state-level directives. The move attempts to minimize legal exposure while maintaining standardized support metrics for local small businesses.

Local firms previously certified under the former system will see no immediate changes to their status through fiscal year 2027. Moving forward, business owners must meet the new size-based eligibility standards to participate in the program.

The takeaway

The transition creates a standardized path for small business support that relies on company size rather than ownership identity. Business owners should review the updated eligibility thresholds to ensure they remain qualified for future participation.

Further reading

For more information on regional economic policies, visit the Tallahassee Business — General section.

Source note: This article includes information reported by Tallahassee Democrat.

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Should local government contracts favor business size over minority status to determine eligibility for aid?