Disadvantaged Business Enterprise (DBE)

What the DBE Process Looks Like

The Disadvantaged Business Enterprise (DBE) certification process begins with ensuring that your business meets the eligibility requirements: at least 51% ownership and control by socially and economically disadvantaged individuals, such as minorities or women. You’ll need to submit documentation that includes your business’s financial statements, proof of ownership, and information on management and control. Applications are typically handled through the state’s Unified Certification Program (UCP), where your business will undergo a thorough review to confirm its eligibility. Depending on the state, the process may include interviews, site visits, and additional documentation requests. Once certified, you’ll be listed in the official DBE directory and eligible to bid on contracts funded by federal transportation projects. Certification is valid for a set period and must be renewed regularly.

Why It’s a Must for Your Company

DBE certification is crucial for businesses looking to participate in federally funded transportation projects, as it opens the door to exclusive contracts set aside for DBEs. This certification not only provides access to lucrative government contracts but also increases your business’s visibility by listing it in government-approved directories, making it easier for prime contractors to find and partner with you. DBE certification enhances your company’s credibility, signaling that you meet federal diversity and equity standards. Beyond contract opportunities, DBE certification connects you to a network of support, including business development programs, financial resources, and networking events, all of which can help grow your business and position you as a key player in the competitive world of government contracting.

Requirements

1. Ownership: The business must be at least 51% owned by individuals who are both socially and economically disadvantaged. Groups presumed to be disadvantaged include:

   • Black Americans

   • Hispanic Americans

   • Native Americans

   • Asian-Pacific Americans

   • Subcontinent Asian Americans

   • Women

   • Others found to be disadvantaged by the Small Business Administration (SBA) See Who is socially disadvantaged?

   Individuals not belonging to these groups may also qualify if they can demonstrate social and economic disadvantage.

    

2. Control: The disadvantaged owner(s) must control the management and daily business operations. They must have the power to direct or cause the direction of the firm’s management and policies.

3. Business Size: The firm must be a small business as defined by SBA standards. As of March 1, 2025, the business’s average annual gross receipts over the previous three fiscal years must not exceed $31.84 million.  Personal Net Worth: Each disadvantaged owner’s personal net worth must be less than $1.32 million, excluding ownership interest in the applicant firm and equity in their primary residence. 

4. Independence: The business must be independent, meaning its viability does not depend on its relationship with another firm.

What you will need:

• Unified Certification Program (UCP): Each state has a UCP  for DBE certification. 

• Documentation:

  • Application form

  • Personal Net Worth Statement for each disadvantaged owner

  • Business tax returns for the past three years

  • Personal tax returns for each disadvantaged owner

  • Business formation documents (e.g., Articles of Incorporation)

  • Resumes of all owners

  • Proof of citizenship or legal residency

  • Licenses, permits, and other relevant documents 

• On-Site Visit: The certifying agency will conduct an on-site review of your business to verify information provided in the application. Department of Transportation

• Certification Decision: The agency will notify you of its decision. If approved, your firm will be listed in the state’s UCP directory.