Minority Business Enterprise (MBE) Certification

The business must be at least 51% independently owned and controlled by one or more socially and economically disadvantaged individuals. This ownership must be real and substantial.

The owner must also be a U.S. citizen or lawfully admitted permanent resident.

At least 51% of the business must be owned by individuals who belong to an eligible group:

• African Americans
• American Indians and Native Americans
• Hispanic Americans
• Asian Americans
• Women
• Individuals with a physical or mental disability

Persons who own and control their business, but are not members of one of the above groups, also may be eligible for MBE certification if they establish their social and economic disadvantage.

The owners must have an overall understanding of, and managerial and technical competence and experience directly related to, the type of business in which the firm is seeking certification.

Firms are certified in specific areas of work, defined by the North American Industry Classification System (NAICS Codes).

Owners with 51% or more of the business must have a personal net worth of no more than $2,192,035 (2026 Size Guidelines). This limit doesn’t count the business's value or the equity in their main home.

Learn how to calculate your personal net worth

All MBE-certified businesses must qualify as small, based on the standards set by the U.S. Small Business Administration (SBA). These size standards are determined by industry based on NAICS Codes.

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To meet the overall minority business procurement goals, State agencies set goals on those contracts that have subcontracting opportunities; thus, not every contract will have an MBE participation goal. Some of the factors that State agencies take into consideration when setting minority participation goals include, but are not limited to, the type of work involved; potential subcontracting items; location of the project; locations of MBE firms that are currently certified; and availability of MBE firms.

If a certified MBE meets or exceeds the U.S. SBA size standards specified in 13 CFR Part 121, that MBE is no longer eligible to participate in a procurement as a certified MBE but is still eligible for credit towards an MBE goal under a contract entered into when the firm was eligible and certified. Ineligibility of an MBE to participate in the MBE program may not be the sole cause of the termination of the MBE contractual relationship for the remainder of the term of the contract.

If, during the next three years, the firm again becomes qualified under the U.S. SBA size standards, the firm may resume participation as a certified MBE through the recertification process.

If, after three years of nonparticipation, the MBE continues to meet or exceed the U.S. SBA size standards, the MBE is considered to have graduated and will no longer be certified.

Yes. The prime contractor must first attempt to meet the MBE participation goal established on the contract by seeking out and utilizing certified MBE firms. Once work begins, the prime contractor is responsible for all project activities including those of its subcontractors.

Regular monitoring assures that contractual items are performed in accordance with specifications, including MBE participation. Monthly reports, such as payroll, cost and time estimation and progress reports, must be submitted by the prime contractor.

Certified firms are reviewed annually to determine whether the ownership and control of the certified firm has changed. Contract compliance monitoring procedures also facilitate the identification of "front" or "pass through" firms.