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Posted February 22, 2008

 

Minority Business Development--State MBE Certification Programs

 

Among minority business enterprise (MBE) development strategies, perhaps the most well known, are programs designed to encourage minority-owned business growth through facilitated participation in government procurement.

MBE procurement assistance programs often include services such as technical training on government contracting and the bidding process, as well as notification of current bidding opportunities. Providing more direct assistance, some states have “set aside” programs where a certain percentage of government contracting is designated for minority firms. These set asides are expressed as goals that government agencies try to meet, and are not treated as enforceable quotas.

States with set aside programs certify minority-owned businesses as such to ensure that participation in the program is limited to the group it was designed to assist.  The application process for certification often involves submitting a detailed report on the firm along with supporting documents to the certification authority.  The authority may also visit the business site to verify information provided in the application.  The certification process can take as little as 10 days in some states, and up to 90 days in others. 

In addition to state-level programs, there are federal programs that also provide direct procurement assistance to minority owned-businesses.  The U.S. Small Business Administration’s 8a and SDB programs, as well as the Department of Transportation’s disadvantaged business enterprise (DBE) development program, all  involve set asides and certification for federally-funded government procurement.

At least 27 states have state-level MBE development programs involving certification for participation in state government procurement independent of existing federal DBE development programs in both funding and administration.  The following chart contains a list of states with these programs, information on their administrative structure, and links to their respective websites.



State MBE Certification Programs


STATE


ADMINISTERING AGENCY/
PROGRAM


CERTIFICATION AUTHORITY

Alabama Department of Economic and Community Affairs Office of Minority Business Enterprise
California Department of General Services

State-level MBE program found unconstitutional in 1998.

Disabled Veteran Business Enterprise (DVBE) and Small Business Enterprise programs still effective.
Office of Small Business Certification and Resources
Connecticut Department of Administrative Services Supplier Diversity Program
Delaware Department of Administrative Services Office of Minority and Women Business Enterprise
Florida Department of Service Management Office of Supplier Diversity
Illinois Department of Central Management Services Business Enterprise Program
Indiana Department of Administration Minority Business Development Program
Iowa Department of Inspections and Appeals Targeted Small Business Certification Program
Kansas Department of Commerce Disadvantaged Business Enterprise Program
Maryland Department of Transportation Office of Minority Business Enterprise Program
Massachusetts Department of Business and Technology State Office of Minority and Women Business Assistance
Minnesota Department of Administration Materials Management Division, Targeted Group/Economically Disadvantaged Small Business Program
Mississippi Mississippi Development Authority, Minority and Small Business Development Division Minority Business Certification Program
Missouri Office of Administration Office of Supplier and Workforce Diversity
New Jersey    Minority and Woman-Owned Business Enterprise Program
New York Empire State Development Division of Minority and Women-owned Business Development
North Carolina Department of Administration Office for Historically Underutilized Businesses
Ohio Department of Administrative Services, Equal Opportunity Division Minority Business Enterprise Unit
Oregon Oregon Department of Consumer and Business Services Office of Minority, Women and Emerging Small Business
Pennsylvania Department of General Services Bureau of Minority and Women Business Opportunities
Rhode Island Department of Administration Rhode Island Minority Business Enterprise Compliance Office
South Carolina Governor’s Office of Small and Minority Business Assistance Governor’s Office of Small and Minority Business Assistance
Texas Texas Building and Procurement Commission Historically Underutilized Business Program
Virginia Department of Minority Business Enterprise, Services Division Department of Minority Business Enterprise, Services Division
Washington Office of Minority and Women’s Business Enterprise Office of Minority and Women’s Business Enterprises
West Virginia West Virginia Development Office Small Business Development Center
Wisconsin Department of Commerce, Bureau of Minority Business Development
Department of Administration, Division of State Agency Services, Minority Business Enterprise
Department of Commerce, Bureau of Minority Business Development

Other Resources:

U.S. Department of Transportation - Office of Small and Disadvantaged Business Utilization web site

U.S. Small Business Administration (SBA) - Small Disadvantaged Business (SDB) program web site

“Minority-Owned Business Development” - NCSL LegisBrief, June, 2004 - NCSL Publications


For more information or for errors or omissions in this chart please contact:

Ian Pulsipher
NCSL Fiscal Affairs
econ-info@ncsl.org
303-364-7700 ext. 1649

 

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