Resources

 

Introduction

Programs for disadvantaged businesses were created during the late 1960s and early 1970s because individuals continued to be excluded from business opportunities based on their race or gender. Later, these programs were expanded to include other groups that experienced similar bias. Disadvantaged programs promote greater opportunity for members of disadvantaged groups to participate in the supplying of goods or services to governments and large organizations. Certification of disadvantaged enterprises provides proof of owners’ disadvantaged status, offers access to opportunities that support their success, and acts as a mechanism for governments and organizations tracking their utilization of and dollars spent with these firms – a particular benefit to organizations that do business with the federal government as it provides evidence of their support of these firms.

Technical assistance programs exist to support the overall wellbeing of these enterprises. They include avenues to highlight the enterprises through procurement databases and networking conferences which provide opportunities to sell products and services to larger organizations. Certifications can support marketing efforts and possibly help “seal the deal” when pursuing procurement opportunities.

Included in this manual are listings of different government and private entities that provide certifications and have programs to support disadvantaged businesses. Additionally, procurement and networking opportunities are included so that readers understand when and where possible connections can be made for successful bidding.

First, businesses generally must meet the following criteria to be considered disadvantaged enterprises:

• Business must be at least 51% owned by one or more people in the disadvantaged group
• 51% owner(s) must be a U.S. citizen or legal permanent resident
• Specified owner(s) has day to day involvement and control in operations of the firm
• Individual net worth less than $750,000 (excluding business and primary home equities)
• Must be considered small size business within their industry

Following are the most common certifications for disadvantaged businesses. Included is their definition and program background (federal or state).

Minority Business Enterprise (MBE) - typically captures the commonly presumed disadvantaged businesses at least 51% owned and controlled by ethnic minorities – African American, Hispanic American, Asian American, and Native American. Initial program established in 1971 as part of White House Executive Order 11625 to support full participation of these individuals in the country’s free enterprise system where they were historically discriminated.

Women Business Enterprise (WBE) – firm must be at least 51% owned and controlled by one or more women. Initial program established in 1979 as part of White House Executive Order 12138 to support the participation of women in federal contracting opportunities.

Veteran Owned Small Business (VOSB) – firm must be at least 51% owned and controlled by a person who served in active military, naval, or air service, and who was discharged or released under conditionsother than dishonorable. Support programs established in 1999 as the Veterans Entrepreneurship and Small Business Act in recognition of the negative impact of numerous military deployments for these individuals.

Service Disabled Veteran Owned Small Business (SDVOSB) – firm must be at least 51% owned and controlled by a U.S. military veteran who was disabled in the line of duty in the active military, naval, or air service. Support programs established in 1999 as the Veterans Entrepreneurship and Small Business Act as well as part of the Veterans Benefits Act of 2003.

Disadvantaged Business Enterprise (DBE) – U.S. Department of Transportation designation established in 1980 for firms at least 51% owned and controlled by one or more socially and economically disadvantaged individuals to ensure that these firms have an equitable opportunity to participate in DOT's direct and DOT funded procurement and Federal financial assistance programs.

Small Disadvantaged Business (SDB) – SBA designation for support in overcoming the effects of discrimination towards socially and economically disadvantaged business owners. According to The Small Business Act, [presumed] socially disadvantaged is defined as individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. If not presumed, socially-disadvantaged status must be proven with a preponderance of evidence that the owner has been subjected to substantial, chronic prejudicial treatment. Economically, disadvantaged is defined as those who are socially disadvantaged, whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged. Designation was established in 1978 through Public Law 95-507 amending the Small Business Act and Small Business Investment Act of 1958 to make federal procurement contracting more accessible to all small businesses.

Historically Underutilized Business (HUB) – designation for minority, woman, and disabled business owners, and non-profit workshops for the blind and severely disabled doing business with the state of North Carolina. Initially supported in 1990 by NC Executive Order 77 for businesses owned by these individuals and later in 1999 by NC Executive Order 150 which created the “HUB” designation to better reflect the intent of this statewide program.

HUBZone - SBA program established in 1997 that encourages economic development in historically underutilized business zones as defined by qualified (as defined by the IRS) census tracts, qualified non- metropolitan county with a median household income or with an employment rate of not less than 140 percent of the statewide average based on US Dept of Labor recent data, or lands within boundaries of federally recognized Indian reservations. Program provides access to more Federal contracting opportunities when small businesses are located in these zones. Additionally at least 35% of employees must reside in the zones for a small business to be eligible for this designation.

Contact each certifying entity for specific eligibility requirements and applications.

 

Government Certifications

Federal

SBA 8(a) Business Development Program
Eligible 51%+ Owner: Minorities, Women, Socially-Disadvantaged
https://www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program

SBA Small Disadvantaged Business (SDB)
Eligible 51%+ Owner: Minorities, Socially-Disadvantaged
https://www.sba.gov/federal-contracting/contracting-assistance-programs/small-disadvantaged-business

SBA HUBZone Program

Eligibility: Located in Historically Underutilized zone (HUBZone1), owned and controlled by U.S. Citizens, employ at least 35% of employees as residents from HUBZone https://eweb1.sba.gov/hubzone/internet/index.cfm

U.S. Department of Transportation Disadvantaged Business Enterprise (DBE)

(Federal certification for all U.S. Department of Transportation funded state DOT’s) Eligible: 51% + Owner: Minorities, Women, Socially- and Economically-Disadvantaged https://connect.ncdot.gov/business/SmallBusiness/Online-Cert-App-Portal/Pages/default.aspx

Veteran Owned Small Business (VOSB)
Eligible: 51%+ owner: military veteran
https://www.va.gov/careers-employment/veteran-owned-business-support/
Begin process with “Vets First Verification” site: https://www.vetbiz.va.gov/vip/

Service Disabled Veteran Owned Small Business (SDVOSB)
Eligible: 51%+ owner: service- disabled military veteran
https://www.va.gov/careers-employment/veteran-owned-business-support/
Begin process with “Vets First Verification” site: https://www.vetbiz.va.gov/vip/

Woman-Owned Small Business (WOSB)
Eligible: 51%+ owner: female
https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal- contracting-program

Economically-Disadvantaged Woman-Owned Small Business (ED WOSB)
Eligible: 51%+ owner: female + economically-disadvantaged
https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal- contracting-program

HUBZone
Check this website for HUBZone status: https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5

Federal Procurement Opportunities

• System for Award Management (SAM) - Must be registered here to do business with the United States government https://sam.gov/content/home
• Doing Business with the Department of Defense https://business.defense.gov/
• Department of Energy https://www.energy.gov/osdbu/doing-business-doe
• Federal Business Opportunities (Fed Biz Opps) is now called Contract Opportunities https://sam.gov/content/opportunities

State

NC DOT Disadvantaged Business Enterprise (DBE) (Federal certification for all federally funded state DOT agencies including airports, rail and local area transit systems)
Eligible 51% + Owner: Minorities, Women, Socially-Disadvantaged
North Carolina Department of Transportation https://connect.ncdot.gov/business/SmallBusiness/Online-Cert-App-Portal/Pages/default.aspx

NC DOT Small Business Enterprise (SBE)
Eligible: Business must earn less than 1.5 million annual income
https://connect.ncdot.gov/business/SmallBusiness/Pages/default.aspx

NC DOT Small Professional Services Firm (SPSF)
Eligible: Business must earn less than 1.5 million annual income + perform professional services (engineering, architectural, IT, consulting services, etc)
https://connect.ncdot.gov/business/SmallBusiness/Pages/default.aspx

Statewide Uniform Certification (SWUC)
Eligible 51%+ Owner: Minorities, Women, Disabled, Socially & Economically Disadvantaged
State of North Carolina Historically Underutilized Business (HUB)
Office for Historically Underutilized Businesses
https://ncadmin.nc.gov/businesses/historically-underutilized-businesses-hub/hub-certification/swuc-certification

North Carolina Small Business Enterprise (NC SBE)
Eligible: Business must earn less than 1.5 million annual income
State of North Carolina Historically Underutilized Business (HUB)
Office for Historically Underutilized Businesses
https://ncadmin.nc.gov/businesses/historically-underutilized-businesses-hub/hub-certification/ncsbe-certification

State Procurement Opportunities

• North Carolina Interactive Purchasing System (IPS) https://www.ips.state.nc.us/IPS/Default.aspx
• Register in Vendor Link to receive electronic notification of solicitation notices NC Purchase & Contract Vidsion https://ncadmin.nc.gov/about-doa/divisions/purchase-contract

 

City & County

Government entities have MWBE programs to correct their discriminatory practices from the past. Although very few have actual MWBE programs, most North Carolina cities and counties have MWBE goals for their projects. When considering who to certify with, consider choosing those entities where you plan to conduct business. It is best to contact relevant city/municipality and county purchasing departments for minority, woman, and/or small business enterprise opportunities. North Carolina cities and counties with MWBE programs are listed below.

City Programs

City of Asheville (No longer offering MWBE certification - accepts NC HUB Certification)
https://www.ashevillenc.gov/services/minority-business-services/

City of Charlotte
Eligible 51% + Owner: Minorities, Women
Charlotte Business Inclusion https://charlottenc.gov/GS/procurement/cbi/Pages/default.aspx

City of Durham Small Disadvantaged Business Enterprise
Eligible 51% + Owner: African-American, Women
Equal Business Opportunity Program (EBOP) and Small Local Business Enterprise Program (SLBEP) https://durhamnc.gov/4091/Contract-Compliance-Division

City of Greensboro Minority & Women’s Business Enterprise
Eligible 51% + Owner: African-American, Hispanic, Native American, Women
https://www.greensboro-nc.gov/business/minority-and-women-s-business-enterprise

City of Greenville Minority and Women Business Enterprise Program
Eligible 51% + Owner: African-American, Hispanic, Portuguese, Asian/Pacific Islander, Native American, Women; also accepts certification from NC DOT, NC HUB, and other established MWBE certifications
https://www.greenvillenc.gov/government/financial-services/mwbe-program

City of Raleigh Minority and Women Business Enterprise Program
Eligible 51% + Owner: Minorities, Women
https://raleighnc.gov/services/doing-business/minority-and-women-owned-business-enterprise-mwbe

City of Wilmington Minority and Women Business Enterprise Program
(Does not offer MWBE certification – accepts SBA 8(a), NC HUB, NC DOT, & New Hanover County Certifications)

City of Wilson Minority and Women Business Enterprise Program
Eligible 51%+ Owner: Minorities, Women
https://www.wilsonnc.org/residents/all-departments/financial-services/purchasing/historically-underutilized- businesses-program-hub

City of Winston-Salem Minority and Women Business Enterprise Program Eligible
51% + Owner: Minorities, Women https://www.cityofws.org/414/Minority-Womens-Business

County Programs

Catawba County Minority and Women Business Enterprise Program (No longer offering MWBE certification - accepts NC HUB Certification)
https://www.catawbacountync.gov/county-services/purchasing/minority-business/

Guilford County Minority and Women Business Enterprise Program
Eligible 51% + Owner: African-American, Hispanic, Asian Pacific, Asian Indian, Native American, Women
https://www.guilfordcountync.gov/our-county/purchasing/mwbe-program

Mecklenburg County Minority, Women, and Small Business Enterprise
Eligible 51% + Owner: Minorities, Women, Small Business Business & Diversity Inclusion (BDI) https://www.mecknc.gov/oed/BDI/Pages/default.aspx

New Hanover County Minority/Disadvantaged Business Enterprise Program
Eligible 51% + Owner: Minorities, Women, Disadvantaged
https://finance.nhcgov.com/purchasing-solicitation/minority-women-business-enterprise-program/

Additional Resources

• Minority Business Development Agency (MBDA) https://www.mbda.gov/
• North Carolina Cities and Towns Listing https://www.sog.unc.edu/resources/microsites/knapp-library/cities-north-carolina
• North Carolina Counties Listing https://www.sog.unc.edu/resources/microsites/knapp-library/counties-north-carolina
• North Carolina Military Business Center (NCMBC) https://www.ncmbc.us/
• North Carolina Minority/Women Business Enterprise Coordinators Network http://mwbenetwork.org/
• Small Business Administration (SBA) https://www.sba.gov/
• Small Business & Technology Development Center (SBTDC) https://sbtdc.org/
• US General Services Administration (GSA) https://www.gsa.gov/

 

Private/Corporate Certifications

Certifications commonly accepted by corporations are listed below.

Minority-owned certification

Carolinas-Virginia Minority Supplier Development Council (CVMSDC) https://cvmsdc.org/
US Pan Asian American Chamber of Commerce (USPAACC) https://uspaacc.com/

Woman-owned certification

Women’s Business Enterprise National Council (WBENC) https://www.wbenc.org/
National Women’s Business Owners Corporation (NWBOC) https://www.nwboc.org/

 

Additional Resources

• American DBE Magazine https://americandbe.com/
• Black Enterprise – Small Business https://www.blackenterprise.com/entrepreneurship/
• Latin American Chamber of Commerce https://laccusa.com/
• MBE Magazine https://mbemag.com/
• National Association of Minority Contractors https://namcnational.org/
• National Association of Women Business Owners https://www.nawbo.org/
• National Minority Supplier Development Council (NMSDC) https://nmsdc.org/
• Native American Business Association https://www.nativeamericanbusinessassociation.org/
• National Institute of Minority Economic Development https://theinstitutenc.org/
• United Minority Contractors of North Carolina (UMCNC) https://umcnc.org/
• United States Hispanic Chamber of Commerce https://www.ushcc.com/