Minority Certifications
Federal, state, and local governments offer billions of dollars in contracting opportunities, and many are required, by law, to award a percentage of contracts to small businesses.
Certifying your business can help you successfully compete for government contracts.
Your small business may be able to become certified as a:
–Small Business based upon SBA size standards
–Minority Business Enterprise (MBE)
–Women Business Enterprise (WBE)
–Women-Owned Small business (WOSB)
–Veteran-Owned Small business (VOSB)
–Service-Disabled Veteran-Owned Small business (SDVOSB)
–Disadvantage Business Enterprise (DBE)
–City/County
–Lesbian, Gay, Bi-sexual, Transgender Business Enterprise (LGBTBE)
There are 5 primary outlets:
1. Federal
2. State: State Governments and DOTs
3. Local: City or County Governments
4. Corporate: National and Regional Councils
5. Consultants/Specialty Company: Assistance Centers
Types of Certification & Criteria
Minority Business Enterprise (MBE):
A minority-owned business is defined as being owned, capitalized, operated and controlled by a minority or group of minorities. For the purposes of *NMSDC’s program, a minority group member is an individual who is at least 25% of Asian, African American, Hispanic or Native American descent. Minority eligibility is established via a combination of screenings, interviews and site visits.
- Asian Pacific:Origin in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam the US Trust Territory and Pacific Island, the Northern Marinas Islands, Laos Kampuchea (Cambodia), Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, or the Federated States of Micronesia.
- Asian Indian:Origins in India, Pakistan and Bangladesh
- African American: Who are of African descent
- Hispanic:Citizens of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America and the Caribbean Basin only. Citizens with origin in Spain or Portugal are NOT eligible
- Native American:American Indianan, Eskimos, Aleuts and Native Hawaiians
Criteria for MBE Certification:
- United States citizenship
- Minority businesses must be at least 51% minority-owned operated and controlled. Ownership, in the case of a publicly-owned business, means that at least 51% of the stock is owned by one or more minority group members.
- Must be a for profit enterprise and physically located in the U. S. or its trust territories.
- Management and daily operations must be exercised by the minority ownership member(s).
Women Business Enterprise(WBE):
A woman-owned business is defined as being owned, capitalized, operated and controlled by a woman or group of women. The business must be a “for-profit” business which physically resides in the United States or one of its territories.
Criteria:
- Fifty-one percent (51%) established ownership by a woman or a group of women
- Woman owner must be a U.S. citizenship or legal resident
- Evidence or proof of 51% majority (active) control and effective management, daily operations of the business as evidence by the governing documents such as by-laws, hire-fire authority, signature and other decision-making roles
- Ownership of women must establish their expertise in area they are seeking certification
- Woman owner must serve as President or CEO (if both positions exist).
Women Owned Small Business(WOSB):
The WOSB is a federal program that authorizes contracting officers to specifically limiting, or setting aside, certain requirements for competition solely amongst women-owned small businesses (WOSBs).
Criteria:
- A small business; and
- 51% owned and controlled by one or more women
- The ownership cannot be subject to conditions.
- United States citizenship
- Provide a service/product that is NAICS eligible (WOSB/92)
- Register in System for Award Management (SAM)
- DUNS number (Dun & Bradstreet)
Disadvantaged Business Enterprise(DBE):
The Department of Transportation *Disadvantaged Business Enterprise (DBE) program is designed to address:
- Ongoing discrimination
- The continuing effects of past discrimination in federally-assisted highway, transit, airport, and highway safety financial assistance transportation contracting markets nationwide.
*Goal and objective of the DBE program: is to level the playing field by providing small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded transportation contracts.
Socially Disadvantaged:
Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities.
Economically Disadvantaged:
"Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities.“ ~SBA
Criteria:
- 51% owned by a socially and economically disadvantaged individual(s)
- The business must be a for-profit enterprise
- Physically resides in the United States or one of its territories
- Disadvantaged- You may be eligible if you are a member of a group of persons considered as disadvantaged.
- Business Size Determination- A firm (including its affiliates) must be a small business as defined by SBA standards.
- Annual gross receipts must not exceed $23.98 million in the previous three fiscal years ($56.42 million for airport concessionaires in general with some exceptions)
- Personal Net Worth- Only disadvantaged persons having a personal net worth of less than $1.32 million can be considered as a potential qualified DBE
- Independence- The business must not be tied to another firm in such a way as to compromise its independence and control.
- Day to day control and direct management decision making roles
- United States citizenship or Permanent resident
SERVICED DISABLED/VETERAN OWNED SMALL BUSINESS (SD/VOSB):
The Department of Veterans Affairs (VA) has special authority for Service- Disabled Veteran-Owned Small Business and Veteran-Owned Small Business (SDVOSB and VOSB) set-asides and sole source contracts.
The SDVOSB program provides contracting preferences for small businesses that are owned and controlled by service-disabled veterans. The program is intended to help participating federal agencies achieve the government-wide goals.
Criteria:
- The Veteran owner(s) have direct, unconditional ownership of at least 51 percent of the company.
- Have full decision making authority
- Manages the company on both its policy and day-to-day operations
- Holds the highest officer position
- Should be the highest compensated employee
- Has the managerial experience of the extent and complexity needed to manage the company
Local/Counties:
Local and County Office of Contract Compliance (OCC) effectively serves as a liaison, linking Small, Minority, Female and Disadvantaged Businesses with related business opportunities and encourages equal opportunity for all businesses and individuals.
Equal Business Opportunity Program is to mitigate the effects of past and present discrimination against women and minority businesses.
Criteria:
- The owner have direct, unconditional ownership of at least 51 percent of the company.
- Have full decision making authority
- The owner manages the company on a day to day basis.
- United States citizenship
Lesbian, Gay, Bi-sexual, Transgender Business Enterprise (LGBTBE)
Small businesses that are majority owned, managed, operated, and controlled by LGBTQ individuals. The business owners show that they are a diverse organization that is considered ‘disadvantaged’ by the U.S. government. The certification helps LGBTQ business owners get access to exclusive contracts.
Criteria:
- Verify your LGBTQ status
- United States citizenship
- The owner have direct, unconditional ownership of at least 51 percent of the company.
- Have full decision making authority
- The owner manages the company on a day to day basis.
