How To Register As A Minority-Owned Business

With an MBE certification, businesses can access minority small business grants, business loans, and minority depository institutions.

Read our article to learn about ten great organizations that want to help you fund your small business. Other funding resources include minority business loans, and we even have a roundup of loans you can get with an MBE certification even if you have bad credit!

The most unique resources you will gain access to are minority depository institutions. These institutions exist solely to help business owners in underserved communities who rarely have other funding opportunities.

When you receive your MBE certification, you automatically gain access to a network of other minority-owned businesses in your area and across the country! You can find peers in your industry and have the ability to engage in business opportunities, form partnering relationships, or even joint ventures for mutual success.

There are multiple organizations you can choose to become certified; most boast their own catalog of courses and conference events. We’ll discuss these organizations more in depth below.

NMSDC was founded in 1972 and is the longest-operating business growth engine for the largest group of systematically excluded communities of color.

This council boasts 23 Regional Affiliates across the country, 1,500+ corporate members, and 15,000+ minority-owned businesses in their network. They also offer levels of services available to MBE-certified businesses.

Requirements for your business to be considered for certification:

• Register with your Regional Affiliate
• For profit
• Located in the US or its territories
• 51% minority-owned

The SBA offers opportunities for minority-owned businesses through the 8(a) Business Development Program. This 9-year program helps businesses owned by socially and economically disadvantaged individuals compete in the American economy.

The 8(a) Business Development Program offers its participants one-on-one business development assistance for all nine years of the program, the ability to receive federal surplus property, and eligibility for exclusive sole-source and competitive set-aside contracts.

Requirements for participating:

• Not have previously participated in the 8(a) program
• Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged
• Have a personal net worth of $850,000 or less, adjusted gross income of $400,000 thousand or less, and assets totaling $6.5 million or less
• Demonstrate the potential for success, such as having been in business for two years

State and local governments should also have departments dedicated to helping MBE and women-owned business enterprises (WBE) become certified. Visit official websites for your state/county/city to learn more about the requirements and benefits they can offer with certification.

“MBE (Minority Business Enterprise) certified” means your business received official certification as a minority business. This is something that minority-owned businesses can register for to gain access to both financial and professional opportunities. There are multiple organizations nationwide that offer certification.

You can become a certified minority-owned business by applying through organizations like the National Minority Supplier Development Council (NMSDC), the Small Business Administration (SBA) 8(a) Business Development Program, or local/state government agencies.

MBE certification is important because it provides your minority-owned business with exclusive funding options, a network of other MBE business owners, and contracts/business opportunities you will not have access to without certification.

The SBA considers a minority to be a U.S. citizen that is socially and economically disadvantaged. Small businesses owned by Alaska Native corporations, Community Development Corporations, Indian tribes, and Native Hawaiian organizations are also part of this category.

Benefits of being an MBE-certified business include access to unique funding options, a network of like-minded business owners, exclusive contracts and business opportunities, and professional development conferences/events. It also legitimizes your business and claims of minority ownership to customers and clients.

The cost of an MBE certification depends on what program you are applying through. NMSDC currently requires a $2,000 non-refundable processing fee for its certification applicants.

There are a lot of documents required for an MBE certification, but the most important are a valid picture ID, proof of ethnicity for owner(s), federal tax returns, current financial statements, Employee Identification Number (EIN), and other relevant business documentation. Check where you are applying to learn more.