One of the big contracts went to Luis Liceaga, a Puerto Rican entrepreneur who runs Impact Dimensions, a Philadelphia company that makes convention swag. Liceaga and his subcontractors are making lanyards, baseball caps, and other products with the DNC Host Committee logo on them. He knows what these political conventions can do for a small business like his. Liceaga, a graduate of the Wharton School of Business, credits the Republican National Convention in 2000, which was also held in Philadelphia, for his company’s growth over the past decade or so.

Back then, he had an embroidery company and was hired as a subcontractor to stitch logos onto bags and other merchandise for the convention. He worked so well with the main contractor that they decided to become business partners. “If it weren’t for these conventions, my business wouldn’t be what it is today,” said Liceaga, who launched Impact Dimensions with his partner Norbert McGettigan in 2002.

While Republican leaders were busy nominating George W. Bush as the GOP presidential candidate in 2000, visitors to Philadelphia spent $5.5 million at local stores and about $6 million at bars and restaurants in the city. They spent another $25 million just on hotel rooms.

Giving contracts to ethnic minorities, women, and LGBT-owned businesses aligns with the values of the Democratic party, and is an especially high priority since these groups make up its voter base, says Reverend Leah Daughtry, CEO of the Democratic National Convention Committee. The committee has pledged to give at least 35 percent of its contracts to these groups. “When we talk about diversity and inclusion, it’s not just about voting, but about where we spend our dollars,” says Daughtry.

Historically, spending dollars on union labor was the hallmark of the Democratic National Convention Committee. After all, unions have been one of the Democratic Party’s biggest allies (and donors). But that alliance has sparked tensions in right-to-work states that have hosted the convention in recent years, like North Carolina. In these states, workers at unionized companies don’t have to join unions, weakening workers’ power to negotiate higher wages and job protections, and as a result making unions less prevalent. Local business owners in Charlotte criticized the DNC for expecting contractors to use union labor in a state where only 3 percent of workers are unionized. They told The Washington Free Beacon that they were unable to get contracts with the DNC because of this.

The DNC said both of their venues for this year's convention use unionized labor, though they were unable to say how many of their total contracts involve unionized workers. Philadelphia is generally a union-friendly city, though the former mayor was known for having a rocky relationship with local labor groups.*

Winning a big contract is great exposure for small businesses, says Liz Jenkins Santana, owner of Leap Starr, which specializes in corporate event production. The company, which has 30 employees, won the contract to put on PoliticalFest, the largest convention-related event open to the public. They had their bid ready as soon as the committee started accepting proposals, says Jenkins Santana, who is Native-American, African American, and Caucasian. (She declined to say how much the contract was worth.) LeapStarr staff are currently designing the layout and exhibits for the six-day festival, which will highlight American political history and presidential campaigns. It’s the largest contract Leap Starr has secured for a one-time event.