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How to Get Certified As a Minority-Owned Business

Laura Bradley

Written by  Laura Bradley

Jackie Zimmermann Farrar

Edited by  Jackie Zimmermann Farrar

Updated
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Minority-owned business certifications are a gateway to small-business loans, government contracts, mentorship programs, networking opportunities and more. Here we highlight seven programs that offer different opportunities to different demographics — and tell you what you need to qualify.

Do you qualify as a minority-owned business?

According to the National Minority Supplier Development Council (NMSDC), a minority business enterprise (MBE) is a for-profit business that is at least 51% owned, operated and controlled by members of a recognized minority group. 

In this case, recognized minority groups refer to professionals who are:

  • Asian-Indian
  • Asian-Pacific
  • Black
  • Hispanic
  • Native American

These owners must be U.S. citizens, and the NMSDC requires that their authority over the business’s short- and long-term strategy and operations be “real, substantial and continuing.”

Alternate certifications exist for women- and LGBTQ+-owned businesses, as both these populations have historically faced limited access to business opportunities as well. Eligibility requirements vary across all certifications.

Here’s why you should get a minority-owned business certification

The benefits may vary by program, but minority-owned business certification offers business owners of color wider access to opportunities. Programs for women-owned and LGBTQ-owned businesses offer similar benefits. Those opportunities may include:

  • Government contracts: Federal agencies set aside billions in contracts annually for certified MBEs, Women Business Enterprises (WBEs) and Disadvantaged Business Enterprises (DBEs). Firms certified through government programs like SBA 8(a) and the Historically Underutilized Business Zone (HUBZone), for example, can receive sole-source contracts up to $4.5M ($7M for manufacturing).
  • Minority business loans: Certified status can strengthen loan applications and provide access to exclusive funding opportunities. There are a wide variety of minority business loans, as well as loans and grants for women-owned businesses, so do your research before deciding which is best for you. 
  • Grants: MBE certification can qualify your firm for minority business grants through corporate, state and federal programs like the U.S. Department of Commerce’s Minority Business Development Agency (MBDA). 
  • Supplier diversity programs: Fortune 500 companies actively seek certified MBE vendors, and some opportunities even require MBE or WBE certification. Certified NMSDC businesses also appear in (and can use) a database that connects certified businesses to corporate members.
  • Resources: In addition to providing contract opportunities, most certification programs also provide access to business development resources like entrepreneurship classes, coaching and networking with like-minded entrepreneurs.

Minority-owned business certification options

ProgramQualification CriteriaCostBest For
National Minority Supplier Development Council (NMSDC)
  • 51% of the business is minority-owned
  • Minority owner(s) serve as President or CEO
  • Minority owner(s) are active in daily management
  • Minority owner(s) are U.S. citizens
$270 to $1,700 depending on business sizeFor-profit businesses looking to network with NMSDC corporate members and capital firms
SBA 8(a) Business Development Program
  • No past participation in the 8(a) program 
  • 51% of the business is owned and controlled by U.S. citizens who are socially and economically disadvantaged 
  • Personal net worth of $850k or less, adjusted gross income of $400k or less and assets totaling $6.5M or less
  • Owners demonstrate good character
  • Business has operated for at least two years 
FreeSmall, economically disadvantaged businesses seeking federal contracts
Disadvantaged Business Enterprise program with the U.S. Department of Transportation
  • Must be an independent business
  • Must be at least 51% owned and controlled by socially and economically disadvantaged individuals
  • Adhere to the requirements of Section 3 of the Small Business Act, the Small Business Administration regulations implementing that Act and the Infrastructure Investment and Jobs Act’s (IIJA) DBE size limit
  • Firm owners’ personal net worth cannot exceed $2.047M
Typically free, but may vary by stateTransportation industry businesses seeking federal contracts
NGLCC certification
  • Must be at least 51% LGBTQ- owned, operated, managed and controlled
  • LGBTQ owners must be U.S. citizens or lawful permanent residents
  • Must exercise independence from any non-LGBTQ business enterprise
  • Must be headquartered in the U.S.
  • Must have been formed as a legal entity in the U.S.
$899 for certification, $499 for recertification; fees waived for applicants who demonstrate valid, current membership with their local affiliate chamber of commerceLGBTQ-owned businesses 
WOSB certification
  • Must be a small business according to SBA size standards
  • Must be at least 51% owned and controlled by women 
  • Women owners must be U.S. citizens
  • Women must manage day-to-day operations and make long-term decisions
FreeWomen-owned businesses looking to compete for government contracts
WBENC certification
  • Must be at least 51% owned, controlled, operated and managed by a woman or women
  • Women owners must have “unrestricted control of the business, a demonstrated management of day-to-day operations and a proportionate investment of capital or expertise”
$350 to $1,250 application fee, depending on annual gross revenueWomen-owned businesses seeking mentorship, networking and other business opportunities with WBENC corporate and government partners
Minority-owned business certification with state and local governmentsVaries by programVaries by state or municipality and programSmall, local, minority and women-owned businesses, particularly those competing in industries not covered by WOSB or DBE certification

National Minority Supplier Development Council (NMSDC)

The National Minority Supplier Development Council (NMSDC) is a membership organization with 23 regional chapters for minority-owned small businesses. It provides minority business enterprise (MBE) certification for businesses that are at least 51% owned and controlled by recognized minorities.

An MBE certification offers advantages like contract opportunities, networking access to a community of 17,000+ participating organizations, business-development conferences, access to capital and specialized business education and development.

  • Complete the prequalification form.
  • Collect the required documentation, including: 
    ○ Proof of citizenship and eligible minority ethnicity for at least 51% of owners
    ○ Resumes for all qualified minority owners
    ○ Proof of your business’s Federal Tax ID (EIN)
    ○ Business formation documents
    ○ Proof of initial capital investment in the business
    ○ Business licenses
    ○ Tax filings for two most recent tax years
    ○ Current invoices with proof of payment 
  • Complete your application.
  • Electronically sign application and submit payment.
  • Schedule and complete an interview.
  • NMSDC aims to provide final decisions within 45 days of application submission.

SBA 8(a) Business Development Program

This nine-year program helps socially and economically disadvantaged small business owners grow their government-contract capacity. Benefits of participation include one-on-one business development assistance, mentorship opportunities, free training through the SBA’s Empower to Grow program and more. 

What is the HUBZone Program?

Along with the 8(a) business development program, the SBA also offers resources for entrepreneurs in historically underutilized business zones. Each year, at least 3% of government contracts are reserved for businesses in HUBZones. To qualify, 35% of your employees and your business headquarters must be in a designated zone.

Disadvantaged Business Enterprise program with the U.S. Department of Transportation

The Disadvantaged Business Enterprise (DBE) program offered by the U.S. Department of Transportation (DOT) offers minority-owned businesses opportunities to compete for federal transportation contracts. By law, at least 10% of DOT funds for highway and transit projects must be spent with DBEs.

  • If you are not already certified as a DBE, fill out a Uniform Certification Application.
  • In addition to completing a questionnaire, you must provide documentation including but not limited to:
    ○ Resumes for all owners, officers and key personnel of the applicant firm
    ○ Personal net worth statement for each socially and economically disadvantaged owner
    ○ Three most recent personal federal tax returns for all relevant business owners
    ○ Business’s federal tax returns for three most recent tax years
    ○ Bank authorization and signatory cards
  • You’ll need to submit your application with your state authority, located on the chart of DBE State Certifying Agencies.
  • Your state’s transportation agency will follow up with further instructions.

NGLCC certification

The National LGBT Chamber of Commerce (NGLCC) offers the LGBTBE certification, which provides the opportunity to compete for contracts with NGLCC’s corporate and government partners, business exposure in NGLCC’s online searchable database and eligibility for specialized mentorship programs, leadership training and scholarship opportunities.

  • Apply on the NGLCC website and submit a non-refundable processing fee.
  • Provide required documentation, which varies based on business structure. For more information, consult the NGLCC’s Supporting Documents Checklist.
  • NGLCC staff member prepares your application for review.
  • NGLCC schedules a virtual visit with the majority business owner to corroborate your application and learn more about your business.
  • Final decisions are made during Certification Committee meetings, held monthly.
  • Applications typically take 60 to 90 days to process in total.

WOSB certification

The federal government aims to allot 5% of its contracting dollars to Women-Owned Small Businesses (WOSBs) certified by the U.S. Small Business Administration. Some contracts are even more limited, available only to economically disadvantaged women-owned small businesses (EDWOSBs). SBA certification gives WOSBs and EDWOSBs access to federal contracts only available to a limited number of businesses. The certification doesn’t provide the same benefits in the private sector. 

  • Register and log into MySBA Certifications. 
  • Select a Qualified Owner to handle all initiating and closing processes in the application, including:
    ○ Claiming your business
    ○ Selecting the program(s) you’re applying for
    ○ Assigning and inviting a delegate
    ○ Reviewing, signing and submitting the application
  • Your delegate will cover core processes including:
    ○ Providing information about your business including ownership, professional licenses and more
    ○ Filling out program-specific questionnaires
    ○ Uploading documentation
  • Provide the required documentation within 60 days of submitting your application.

The SBA provides an application preview so you can begin planning any time.

WBENC certification

The Women’s Business Enterprise National Council (WBENC) offers a certification process that leads to benefits and opportunities for women-owned businesses in public and private sectors. This program certifies businesses that are at least 51% woman-owned and provides networking opportunities, eligibility for national awards and the opportunity to pursue business with corporations, government entities and other WBENC-Certified WBEs.

  • Confirm your eligibility.
  • Gather the required documentation, including but not limited to:
    ○ Professional licenses
    ○ Resumes for all owners, board of directors and key managers
    ○ Evidence of gender for female owner(s) such as U.S. passport, birth certificate, driver’s license or state identification card
    ○ Profit and loss statements and balance sheets that align with the most recent tax return submitted
    ○ Loan agreements
  • Apply online.
  • Await application review and schedule a site visit.
  • Final determination takes approximately 90 days.

Minority-owned business certification with state and local governments

Many states and local governments offer programs for minority business certification that carry unique benefits. Typically, these programs offer exposure, training, financial assistance and an increased probability of landing government contracts.

City programs can offer different benefits from broader state programs. For example, New York City’s program provides a listing in a directory promoting certified businesses, networking event invitations and educational opportunities tailored to your business, while the New York state program helps women and minority-owned businesses secure state contracts more efficiently.

When looking for local programs, your state office for minority and women business enterprises is a good place to start. Major cities like New York City, Los Angeles, Chicago, Denver and Austin, Texas, all have their own programs as well.

How to decide what certification to get

When comparing certifications, consider the following:

  • Eligibility requirements: You can narrow down your options by identifying which certificate programs you’re eligible for. You may need to meet multiple criteria for some programs. For example, some certifications are only available to small businesses or economically disadvantaged businesses that are also women or minority-owned.
  • Your business goals: Depending on your business needs and your industry, you may be looking to compete for government contracts, network with corporations, receive education or training or just stand out when marketing your business. Decide what’s most important to you before choosing a certification.
  • Your business location: If you’re a small, locally owned business, you might get more benefits from a state or local certification. If you have multiple locations across the U.S., a national certification may benefit you more, but you may also want to pursue a local certification in the city where your business is headquartered. 
  • Your budget: Some programs are free, while others cost hundreds of dollars. Be sure to weigh the cost and the benefits of each program before applying. 
  • Ease of application process: Some certification processes involve a lot of paperwork and require a site visit. Approval times also vary between 30 and 90 days. You should determine how much time and effort you’re willing to put in to get certified and whether the benefits are worth it. 

In some cases, it may be beneficial to apply to multiple certification programs as long as you can qualify and will receive unique benefits from each program. 

Frequently asked questions

An MBE provides several business advantages such as networking opportunities, training, specialized loans and the ability to bid on government contracts. (Government contracts can be highly competitive, and some require an MBE in order to bid.) All of these benefits can support business growth, depending on your firm’s needs.

An MBE refers to a business that is at least 51% owned, operated and steered by a recognized ethnic or racial minority, and a WBE is controlled at least 51% by women. Meanwhile, DBE is a federally administered designation that indicates firms where owners are both socially and economically disadvantaged based on race, gender, environment and personal net worth.

The vetting process varies from certification to certification, but most applications generally take 60 to 90 days to process from the time of submission.

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