SMALL BUSINESS ENTERPRISE

Charleston, S.C., City Code ch. 2, art. XI, div. 8

in effect

Charleston, S.C., City Code § 2-344 Establishment of the office of small business development.

Sec. 2-344. - Establishment of the office of small business development. (a) Establishment. There is hereby established the office of small business development (also referred to as "SBD") that shall be a division of the division of economic development and neighborhood services. The small business development program is intended to be a race and gender-neutral program. (b) Duties and responsibilities of director. The SBD director shall be responsible for administering the minority business development plan as adopted by city council, from time to time, to increase participation of disadvantaged and women business enterprises. The director shall also establish programs, subject to the approval of the mayor, to assist potential entrepreneurs and existing small business owners through the following: (1) Assisting potential entrepreneurs to identify and evaluate resources related to the startup of his or her small business; (2) Aiding existing small business owners in the capacity of business growth and expansion; (3) Providing access to potential economic and financial opportunities through the use of business databases; (4) Providing guidance and counsel to assist businesses become more efficient by improving management skills and operational effectiveness; (5) Conducting and co-sponsoring workshops on topics related to starting and operating a small business in South Carolina; (6) Administer a small business certification program per section 2-346. (c) Duties of the office. (1) Financial assistance. The office shall provide financial planning and technical assistance to businesses by evaluating and analyzing financial records. The office shall also assist in the preparation of business loan proposals. (2) Loan programs. The director is hereby authorized, subject to review and approval of the mayor, to create, administer, and manage loan programs. All loan programs shall have strict guidelines, lending limits, and require a governing board review for approval. The governing board shall be appointed by the mayor and shall consist of seven (7) members as follows: one (1) member from the enterprise community board, the enterprise community coordinator of the department of housing and community development, one (1) accountant, one (1) member from the business community, and three (3) members who possess lending experience. (Ord. No. 1999-07, § 1, 1-26-99; Ord. No. 2014-10, §§ 1, 2, 1-30-14; Ord. No. 2025-021, § 1, 2-25-25; Ord. No. 2025-189, § 2, 12-16-25)

Charleston, S.C., City Code § 2-345 Definitions.

Sec. 2-345. - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Commercially useful function shall mean a function performed by a business enterprise when it is responsible for supplying goods or for execution of a distinct element of the work of a contract and carrying out its responsibilities by actually performing, managing, and supervising the work involved. To determine whether an SBE is performing a commercially useful function, the amount of work subcontracted, industry practices, and other relevant factors shall be evaluated. Conduit shall mean a small business enterprise (SBE) that knowingly agrees to pass the scope of work, for which it is listed for participation and is scheduled to perform or supply on the contract, to a non-SBE firm. Eligible owner shall mean an individual that must be involved in the daily management and operations of the business concerned and is: (1) An individual who owns at least fifty-one (51) percent of the equity of a business enterprise, or (2) An individual who owns at least fifty-one (51) percent of all classes of voting stock of a corporation, or (3) An individual who owns at least fifty-one (51) percent of a partnership interest. Good faith effort is action taken by a vendor to meet the contract requirements set forth in the good faith effort policy. Small business enterprise (SBE) shall mean a business enterprise that is verified by the SBD, or his or her designee, as meeting all of the requirements for certification under the SBE program. These requirements shall include, but are not limited to, the financial ability, skill levels, experience levels, and access to necessary staff, facilities, and equipment needed to complete or fulfill a particular contract, subcontract, or procurement. SBE certification shall mean completion, by a business enterprise, of the application process and subsequent approval by the SBD for participation of the business enterprise in the SBE program. Additionally, certification through the South Carolina Department of Transportation will be accepted by the SBE program. (Ord. No. 2025-189, § 2, 12-16-25)

Charleston, S.C., City Code § 2-346 Program eligibility and certification.

Sec. 2-346. - Program eligibility and certification. The SBD shall determine the certification of applicant business enterprises as SBEs in order to implement the purposes of this program based on the following requirements: (1) Gross sales receipts do not exceed seven million five hundred thousand dollars ($7,500,000.00) annually as averaged over the preceding three-year period. (2) The eligible owner is actively involved in the day-to-day management and control of the business enterprise and the delivery of its products and services, (3) The enterprise has been actively in operation, providing goods and/or services, for at least the preceding twelve-month period. (4) The enterprise has a current business license and is current on all county taxes and fees. (Ord. No. 2025-189, § 2, 12-16-25)

Charleston, S.C., City Code § 2-347 Business graduation from SBE program.

Sec. 2-347. - Business graduation from SBE program. Certification of a business enterprise as an SBE will be re-evaluated every two (2) years through the application renewal process. An SBE that desires to maintain its certification will be required to renew their application every two (2) years. An SBE who does not renew their application will be ineligible to participate in the SBE program until renewal is complete. Once the gross annual receipts of a business enterprise exceed seven million five hundred thousand dollars ($7,500,000.00), as averaged over the previous three-year period, then that business enterprise will no longer be eligible to participate in the City of Charleston SBE program. An SBE shall supply two (2) years' annual business income tax returns or other information required by the city to verify gross annual receipts. This information will be kept strictly confidential. (Ord. No. 2025-189, § 2, 12-16-25)

Charleston, S.C., City Code § 2-348 Good faith effort policy.

Sec. 2-348. - Good faith effort policy. In all contract procurements for services and construction, the good faith effort policy will be required of all prime contractors submitting a bid. The good faith effort policy requires prime contractors to make a documented effort to provide contract opportunities to small business enterprises. The prime contractor is required to make documented contacts to certified firms for contracting opportunities as set forth in solicitations. Noncompliance with the policy, or failure to document compliance with the policy, will result in a bid or proposal being deemed nonresponsive. (Ord. No. 2025-189, § 2, 12-16-25)

Charleston, S.C., City Code § 2-349 Forming of conduit arrangement with a small business enterprise for the purpose of securing contracts and procurements.

Sec. 2-349. - Forming of conduit arrangement with a small business enterprise for the purpose of securing contracts and procurements. Where an SBE serves as a conduit, the SBE has not performed a commercially useful function. This arrangement does not meet the commercially useful function requirement, and therefore the SBE's participation does not count toward the SBE goal. Commercially useful function is measured for purposes of determining securing contracts and procurements, not for determination of certification eligibility. (Ord. No. 2025-189, § 2, 12-16-25)

Source: City of Charleston, South Carolina, Code of Ordinances and Zoning Ordinance (Municode Library, library.municode.com)URL: https://library.municode.com/sc/charleston/codes/code_of_ordinances?nodeId=CICO_CH2AD_ARTXIDEBUFIRECO_DIV8SMBUENFetched: 11/7/2026