Since 1983, a statutory provision has required the United States Department of Transportation to ensure that 10% of government funds authorized for highway and transit financial assistance programs be extended to Disadvantage Business Enterprise. The goal of the program was to ensure firms have equal opportunity to work on federally funded government contracts.
A Disadvantage Business Enterprise (DBE) is a small business owned by a woman or minority group member, as certified by the Department of Transportation. In order to receive DBE certification, your firm must meet a number of requirements, submit an application and financial statements, allow for an on-site visit, and submit to other requests from the certifying body.
This means that a certain number of government contracts must be awarded to DBE firms. Process servers who are eligible for receiving minority status might not be aware of this opportunity. Should your firm obtain minority status, you will become eligible for government contract work that you would not otherwise be able to get. If you are eligible, this can be a great opportunity to expand your business, market to a new client base, and grow your business.
In order to asses whether your company is eligible for DBE status, or for a state-level minority program, review the criteria below.
Disadvantage Business Enterprise (Federal)
Granted by the United States Department of Transportation, being certified as a Disadvantage Business Enterprise (DBE) will make your process serving firm eligible for government contracts that must be fulfilled by minority contractors.
According to the United States Department of Transportation website, the goals of the DBE program are:
To ensure that small disadvantaged business enterprises (DBE) can compete fairly for federally funded transportation-related projects.
To ensure that only eligible firms participate as DBEs.
To assist DBE firms in competing outside the DBE Program.
In order to apply for DBE certification, your firm must meet a number of criteria, submit to an on-site evaluation of your business, fill out a personal financial state
Criteria
In order to meet the criteria for DBE certification, your firm must meet requirements in:
Social and Economic Disadvantage
Personal Net Worth
Business Size Standard
Ownership
Independence
Management and Control
Proper Licensure and Credentials
Social and Economic Disadvantage
For this program, according to information on DBE, minority groups include women, African Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Americans, and other minorities found to be, “disadvantaged by the regulations or any individual found to be socially and economically disadvantaged on a case-by-case basis.”
Personal Net Worth
Having a personal net worth of less than $1,320,000 would be a potential qualification for DBE. This excludes equity in the individual owner’s personal residence.
Business Size Standards
In order to be eligible, your firm must meet the definitions outlined by the Small Business Administration, including no annual gross receipts over $22,410,000 in the previous three fiscal years.
Ownership
The business must be a for-profit small business, and the person who qualifies as socially and economically disadvantaged must own at least 51% interest and control daily management and business operations.
Independence
Your firm cannot be affiliated with another firm in such a way that forfeits independence and control of facilities, equipment, financial support, personnel, etc.
Management and Control
Much like ownership, the disadvantaged owner must own management, be the policymaker, and the day-to-day operations manager of the firm when it comes to running the business.
Proper Licensure and Credentials
If your state requires process servers to be licensed or registered, you must abide by those standards in order to apply for DBE status.
The California Department of Transportation has put together the below flowchart to help applicants understand the DBE certification process:
If you are interested in applying for Disadvantage Business Enterprise certification, visit the United States Department of Transportation DBE Program.
State Equivalent Programs
In addition to Federal DBE status, 27 states have similar programs. To understand opportunities within your state, click on the associated website in the below table.
State
Department
Office
Website
Alabama
Department of Economic and Community Affairs
Office of Minority Business Enterprise
http://adeca.alabama.gov/Divisions/ced/cdp/Pages/ombe.aspx
California
Department of General Services
Office of Small Business Certification and Resources
http://www.dgs.ca.gov/pd/Programs/OSDS/GetCertified.aspx
Connecticut
Department of Administrative Services
Supplier Diversity Program
http://das.ct.gov/cr1.aspx?page=34
Delaware
Department of Administrative Services
Office of Minority and Women Business Enterprise
http://gss.omb.delaware.gov/omwbe/
Florida
Department of Service Management
Office of Supplier Diversity
http://www.dms.myflorida.com/other_programs/office_of_supplier_diversity_osd
Illinois
Department of Transportation
Business Enterprise Program
http://www2.illinois.gov/cms/business/sell2/bep/Pages/default.aspx
Illinois
Department of Transportation
Business Enterprise Program
http://www2.illinois.gov/cms/business/sell2/bep/Pages/default.aspx
Indiana
Department of Administration
Minority Business Development Program
http://www.in.gov/idoa/2352.htm
Iowa
Department of Inspections and Appeals
Targeted Small Business Certification Program
https://dia.iowa.gov/tsb
Kansas
Department of Commerce
Women's and Minority Business Development
http://ks-kdoc.civicplus.com/index.aspx?NID=231
Maryland
Department of Transportation
Office of Minority Business Enterprise Program
http://www.mdot.maryland.gov/Office%20of%20Minority%20Business%20Enterprise/HomePage.html
Massachusetts
Department of Business and Technology
State Office of Minority and Women Business Assistance
http://www.mbda.gov/node/1429
Minnesota
Department of Administration Materials Management Division
Targeted Group/Economically Disadvantaged Small Business Program
http://www.mmd.admin.state.mn.us/mn02001.htm
Mississippi
Mississippi Development Authority
Minority and Small Business Development Division
http://www.mississippi.org/minority-business/
Missouri
Office of Administration
Office of Supplier and Workforce Diversity
http://oeo.mo.gov/
New York
Empire State Development
Division of Minority and Women-owned Business Development
http://www.esd.ny.gov/mwbe.html
North Carolina
Department of Administration
Office for Historically Underutilized Businesses
http://www.doa.state.nc.us/hub/default.aspx
Ohio
Department of Administrative Services, Equal Opportunity Division
Minority Business Enterprise Unit
http://www.development.ohio.gov/Minority/minoritysmallbusinesscert.htm
Oregon
Oregon Department of Consumer and Business Services
Office of Minority, Women and Emerging Small Business
http://www.oregon4biz.com/Grow-Your-Business/Business-services/Minority-Owned-Business-Certification/
Pennsylvania
Department of General Services
Bureau of Minority and Women Business Opportunities
http://www.portal.state.pa.us/portal/server.pt/community/bureau_of_minority_and_women_business_opportunities/1358
Rhode Island
Department of Administration
Rhode Island Minority Business Enterprise Compliance Office
http://www.mbe.ri.gov/
South Carolina
Governor’s Office of Small and Minority Business Assistance
Office of Small and Minority Business Assistance
http://www.govoepp.state.sc.us/osmba/
Texas
Texas Building and Procurement Commission
Historically Underutilized Business Program
http://www.window.state.tx.us/procurement/prog/hub/
Virginia
Virginia Department of Minority Business Enterprise
Virginia Department of Minority Business Enterprise
http://www.dmbe.virginia.gov/
Washington
Office of Minority and Women’s Business Enterprise
Office of Minority and Women’s Business Enterprise
http://omwbe.wa.gov/certification/
West Virginia
West Virginia Development Office
Small Business Development Center
http://wvsbdc.wvcommerce.org/default.aspx
Wisconsin
Wisconsin Economic Development Corporation
Minority Business Enterprise Certification (MBE)
http://www.dot.wisconsin.gov/business/mbe/application.htm
Process Servers Who Have Obtained Minority Status
Torri’s Legal Services, based in Washington D.C. and serving throughout Virginia and Washington, is DBE, MBE, and SWaM certified. In addition to the Federal certification, Torri is classified as a Minority Business Enterprise (MBE) in Maryland and a Small, Women-owned, and Minority-owned Business (SWaM) in Virginia. This has made her firm eligible for government contracts that must be granted to minority contractors.
In a recent post about her newly-granted certification, she had this to say:
In order to be certified as a minority business, we had to provide extensive documentation about our company and our owner. After completing the application process, a person from the state office visited us to verify that we are run by a minority. It was about a 6-10 month process.
Torri Schaffer, Torri's Legal Services
Schaffer has pointed out that minority status makes her firm eligible for government contracts she would not be able to receive othewise, and notes that this has been an opportunity to expand her business and market to new clients.
Additional Programs
There are additional programs that offer minority status to woman-owned companies, veteran-owned companies, and other minority contractors. For more information, visit your state's website.</p.