Minority Owned Business Certification" width="595" height="400" />Starting a business as a person of color is a major feat. But your journey isn’t over yet — the next step is keeping your doors open long term. Doing this requires continuous capital, networking, and growing your marketing efforts.
Minority Owned Business Certification" width="595" height="400" />
The good news: You don’t have to do this all on your own. Programs exist specifically for minority business owners that can propel their companies forward. If you’re not already a certified minority-owned business, you’re missing out on opportunities for growth.
Minority-owned business certification, also known as Minority Business Enterprise (MBE) certification, is the official recognition that a company is owned by a particular minority group or individual, including:
To qualify, the person has to be a US citizen or resident. Some minority business owners seek certification to:
Certificate programs are available in every state. Local governments run most of these programs, but some private organizations also offer MBE certifications.
These programs aim to help minority business owners grow their businesses through education, mentoring, financing, and other resources. After certification, you can receive these benefits through a local or national organization.
For example, Mid-States MSDC offers coaching, networking events, business opportunity fairs, and executive training to certified minority businesses throughout America.
State or local programs, like the New York and New Jersey Minority Supplier Development Council, offer MBE certification and access to events, procurement fairs, and seminars.
Here’s a list of other national organizations:
Minority-owned business certification is an official designation given to a business owned by people who are racial or ethnic minorities.
One benefit is that certified companies get a leg up in the competition for government contracts and other business opportunities.
For example, government and corporate companies set aside a percentage of their budgets each year to go toward minority-owned businesses. Philadelphia awards 35% of city contracts to minority, women, and disabled-owned businesses.
In 2020, Wisconsin gave 5.4% of state agency contracts to minority-owned businesses.
Becoming a certified minority business owner qualifies you for federal and state contracts and other corporate opportunities.
Organizations look for certified minority businesses to build a diverse supply chain, increase partnerships, and foster economic growth. Plus, some governments reward companies that hire minority businesses.
For example, in Georgia, companies that subcontract to certified minority business owners receive a tax break of 10% for up to $100k in payments to the subcontractor.
As a certified minority-owned business, you also get access to:
Note that there are various programs available to certified minority businesses, which will determine what benefits you’ll have access to.
To qualify for a minority-owned business certificate, you must meet the following requirements (depending on where you get certification from):
The certificate lasts for one year, so you must renew annually using recertification applications.
Where you apply for a minority-owned business certificate will determine the process. For example, here’s how the process looks if you apply for a certificate through the NMSDC:
To complete the NMSDC application, you must include documents, such as:
Each program has its own application requirements, so do your own due diligence when applying.
The cost of applying for a minority-owned business certificate varies based on the local certifying office. For example, if you apply through the Georgia Minority Supplier Development Council, then the initial application fee is $600, then $350 to reapply.
There are also programs that’ll reimburse you for the minority-owned business certificate fee. For example, the National Minority Supplier Development Council has a Certification Reimbursement Initiative with several partners, including:
You can apply with one of these organizations to get a reimbursement for the certification fee. However, you must apply for certification through their organization. For instance, JPMorgan Chase offers a first-come-first-served application process for eligible MBEs that have had their applications approved through them.
You must also meet certain requirements to qualify for certification and reimbursement from JPMorgan Chase, like:
If you’re eligible, you can apply for the certificate and request reimbursement at once. You’ll receive an email confirming receipt and that it’s under review.
After review, one of the following will occur:
Other organizations on the list have different criteria — for example, Lowe’s requires that you have revenue under $3m and prefer retail businesses (although not required). Plus, it’ll reimburse two years of your certification fees.
Check with each company to see which you qualify for and have higher odds of getting approved.
