Classifications and Definitions
- *Minority-owned Business Enterprise (MBE) Certification – Must be certified by the National Minority Supplier Development Council (NMSDC)
MBE - is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. "Minority group members" are United States citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members.
A minority group member is an individual who is a U.S. citizen with at least 1/4 or 25% minimum (documentation to support claim of 25% required from applicant) of the following:
Asian-Indian - A U.S. citizen whose origins are from India, Pakistan and Bangladesh.
Asian-Pacific- A U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.
Black- A U.S. citizen having origins in any of the Black racial groups of Africa.
Hispanic- A U.S. citizen 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. Brazilians shall be listed under Hispanic designation for review and certification purposes.
Native American- A person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental United States and proof can be provided through a Native American Blood Degree Certificate (i.e., tribal registry letter, tribal roll register number).
- *Woman-owned Business Enterprise (WBE) Certification - Must be certified by the Women’s Business Enterprise National Council (WBENC) or National Women Business Owners Corporation (NWBOC).
WBE -is a for profit enterprise, regardless of size that is at least 51% owned by one of more women or in the case of publicly owned businesses, at least 51% of the stock of which is owned by one or more women. The owner must be involved in the day-to-day activities.
- Small Business Association Classifications
Small Business (SB) - a business concern that is organized for profit; has a place of business in the U.S.; operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; is independently owned and operated; and is not dominant in its field on a national basis. The business may be a sole proprietorship, partnership, corporation, or any other legal form.
8(a) Program (8a) – business development program aimed at assisting small businesses with business development needs.
Small Disadvantaged Business (SDB) - SBA certifies SDBs to make them eligible for special bidding benefits. SDBs are at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.
Woman-owned Small Business (WOSB)- A small business that is at least 51 percent owned by a woman or women who also control and operate it.
Veteran-owned Small Business (VOSB)– A small business concern that is at least 51 percent owned by an individual or individuals who has a physical or mental impairment which substantially limits one or more of such persons major life activities. Individual(s) must be involved in the day-to-day management of the business
Service-disabled Veteran-owned Small Business(SDVOSB) - A small business concern that is at least 51 percent owned by an individual or individuals who has a physical or mental impairment which substantially limits one or more of such persons major life activities. The physical or mental impairment must have been sustained during active service in one of the United States armed services. Individual(s) must be involved in the day-to-day management of the business.
Historically Underutilized Business Zone (HUBZone) – A small business concern that appears on the List of Qualified HUB Zone Small Business Concerns maintained by the Small Business Administration
Historically Black College and Universities and other Minority Institutions (HBCU/MI)- educational institutions that existed prior to 1964 with the primary purpose of educating African American, Hispanic and American Indian students.
*MBE/WBE certifications do not have a size standard/requirement