Your Hand on Guide on MBE Certification

MBE Certification: What is it?

A Minority Business Enterprise (MBE) is a designation that is given to businesses that are majority-owned by members of the minority community or other economically disadvantaged segments of the American population. Business owners who are Asian, Hispanic, LGBT, American Indian, Black, or Veteran-owned are eligible for this certification. MBE Certification Program was created to ensure that small companies with significant economic difficulties are given equal access to all state contracts, opportunities, and benefits, regardless of race, color, religion, national origin, disability, age, or ancestry.

How important is it to be certified?

To increase their overarching spending on MBEs, big corporations have implemented supplier diversity programs. Federal Government contracts can only be awarded to businesses that have met a certain level of MBE Certification spending. These symbiotic relationships often lead to tax breaks and incentives from both state and federal governments for companies that source Minority-Owned Businesses or suppliers. Businesses that purchase certified MBEs are eligible to participate in numerous tax incentives on both a federal and state level. In order to participate in supplier diversity programs, many organizations require businesses to receive certification from a third party or government agency. In order to be eligible for these benefits, you must be vetted and certified by a third party.

How else does certification benefit you?

Certification provides many advantages beyond the access to corporations and diverse businesses mentioned above, such as:

  • The opportunity to network
  • Exposure for your company
  • Opportunities for training and education
  • Certified MBE Certification mentorship in your field from more experienced MBEs

Eligibility Criteria for MBE Certification

For a city, county, or state to administer a local MBE program, or participate in the National Minority Supplier Development Council (NMSDC) or a national MBE program, you must meet the following requirements:

  •  A company operating in the United States for profit;
  •  The firm is 51% owned, operated, capitalized, and controlled by a member(s) of a presumed group that manages daily operations with specific technical expertise (experience) relating to the firm's primary business expertise.
  •  The majority of MBE Certification programs administered by cities and counties accept legal residents (green cards), however, the NMSDC requires United States citizenship (with no exceptions).

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