How to Register as a Minority-Owned Business

Getting certified as a minority-owned business can help you access important resources, funding, business opportunities and procurement contracts. If you’re a small business owner or entrepreneur who is part of a minority group, a Minority Business Enterprise certification (MBE certification) can make it easier to work with government agencies, join supplier programs, and grow your business.

Here’s a simple guide to how eligibility and certification work, and how it can help your business.

How to Register as a Minority-Owned Business

The certification process for minority-owned businesses varies by program, but typically it follows these general steps:

1. Collect the needed documents. This includes U.S. citizenship or permanent resident documentation, business licenses, tax forms, and proof of ownership.
2. Apply. Use the organization’s website or portal. Some may charge a fee.
3. Review process. You may need to do an interview or allow a site visit.
4. Get certified. If approved, your business will be listed as a certified minority business enterprise (MBE).

To register as a minority-owned business, you’ll need to apply through a recognized certification program. These programs grant official certification for minority-owned businesses and each has its own certification process. The most common options for certification include:

• National Minority Supplier Development Council (NMSDC)
• Small Business Administration (SBA) 8(a) Program
• Department of Transportation (DOT) Disadvantaged Business Enterprise (DBE)
• State or local government programs

If your business is also owned by a woman, you might qualify for a program that supports both minority- and women-owned businesses.

Certification Requirements

Requirements for minority-owned business certifications depend upon the program. The certification process can typically take 60–90 days from application to review to approval. Here’s a breakdown:

NMSDC Certification

The NMSDC and its affiliates often grant MBE certifications through its process, in addition to Minority Controlled Company (MCC), Minority Public Company (MPC) and Investment Fund Company (IFC) certifications. The requirements are rigorous and include:

• Business must be at least 51% owned and controlled by U.S. citizens who are African-American, Hispanic, Native American, Asian-Indian, Asian-Pacific, or Pacific Islander
• Proof of citizenship and eligible minority ethnicity for at least 51% of the ownership
• Resume for each qualified minority owner, comprising at least 51% of the ownership
• Must be a for-profit business in the U.S. or its territories
• Business formation documents and Federal Tax ID (EIN)
• Last two years of tax filings and any relevant business licenses
• Must be independently owned and not a branch of a larger, non-minority company

SBA 8(a) Program

This nine-year program helps socially and economically disadvantaged small businesses gain access to federal contract opportunities. The SBA 8(a) application itself is extensive, with further details on the SBA website.

• Business must be at least 51% owned and run by socially and financially disadvantaged U.S. citizens
• Must qualify as a small business under SBA rules
• Owners must meet limits on income, assets, and personal net worth
• The business usually needs to have been active for two years
• A social disadvantage narrative must also be included with your submission

DBE/State Government and Local Programs:

A DBE certification allows businesses to participate in U.S. Department of Transportation (USDOT) funded projects.

• Business must be 51% owned and run by someone in a recognized disadvantaged or minority group.
• Must be a for-profit small business.
• Owner(s) must be U.S. citizens or permanent residents.
• May require site visits, tax return documents, and proof of ownership.

The certification process for each program can vary, so it’s important to check their specific rules. Some certifications require a meeting or site visit, compliance review and/or board approvals.

Benefits of Certification

Getting certified can lead to:

• Government contracts. Many federal government and state agencies reserve contracts for certified businesses.
• Supplier diversity programs. Big companies look to work with MBEs.
• Funding options. Certification can help you qualify for special grants for minority business owners.
• Networking and mentorship. Organizations like the NMSDC offer events, training, and support.
• Business development resources. Certified businesses may get help with marketing, planning, and operations.

Does a minority-owned business certification cost money?

Some programs charge a fee. For example, NMSDC charges based on business size. But many state and local certifications are free.

Even if there is a fee, certification can pay off by helping you access more contracting opportunities and funding.

Getting certified: Tips and advice from the experts

Get organized and don’t hesitate to ask for help.

“I became certified in 2014, back when there was no electronic portal. I spent weeks compiling all the necessary paperwork and had to deliver it to the agency physically. Months later, I received a letter saying documents were missing — even though they had been submitted. It was a challenging experience, but it taught me a great deal about documentation, persistence and how to structure my business effectively… Get organized and don’t hesitate to ask for help. Keep all your key business documents (licenses, proof of ownership, tax records) in one place. Reach out to your local MWBE office and take advantage of the webinars, guidance and technical assistance available to you.”

— Amore Philip

Apples & Oranges Public Relations

Plan on dedicating time to this initiative.

“It takes a fair amount of work and effort to put the package together. Each year the certification needs to be renewed so there is an ongoing time commitment. After the first year, the process is focused on changes in the business. We market the fact that we are certified… and that has resulted in new business opportunities, especially from women looking to engage a strategic communications firm or from companies that are dedicated to supporting women- and minority-owned businesses. The WBENC also offers many educational and networking opportunities including speakers from the procurement departments of large corporations looking to do business with women-owned businesses and minorities.”

— Moira Conlon

Financial Profiles