Minority-Owned Small Business
The federal certification for minority-owned small businesses is a program that recognizes small businesses owned and controlled by members of certain minority groups. These groups can include but are not limited to, African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans.
The certification process usually involves a review of the business's ownership, management, and financial status, and it can vary depending on the certifying agency and the program. Businesses that are certified can then be listed in a directory of certified minority-owned businesses, which government agencies and corporations use to identify potential suppliers.
The Federal government aims to award at least 5% of all prime contracts to small businesses owned by socially and economically disadvantaged individuals. However, only about 1.6% of federal contracts currently go to minority-owned small businesses.
That is why if you are a minority-owned business wishing to be a government contractor, this is a certification you must take advantage of.
As a minority small business owner, there are many advantages that come with the territory. Here are the opportunities you will enjoy as a certified minority-owned small business:
- Increased accessibility to contracting opportunities with the government and private sector
- Eligibility for set-aside contracts and other special programs
- Ability to form joint ventures and teaming arrangements with other certified businesses
- Access to financial assistance and other resources
- Priority access to supplier diversity programs from corporations
- Increased networking opportunities
- Ability to use the certification as a marketing tool to attract customers
To be eligible for Minority Owned Small Business Certification, a business must meet certain criteria, including:
- The business must be a for-profit enterprise
- The business must be small as defined by the Small Business Administration (SBA) or other applicable agency or organization
- The business must be at least 51% owned and controlled by one or more members of a recognized minority group
- The minority group member(s) must also actively participate in the management and daily operations of the business.
It's important to note that, in order to be certified, a business must submit an application and provide documentation that proves the eligibility of the business. The certification process can vary depending on the certifying agency and the program, but it usually involves a review of the business's ownership, management, and financial status.
Businesses that are certified as minority-owned are also eligible for grants specifically offered for the following subdivisions:
- Black-owned businesses
- Hispanic-owned businesses
- Asian-owned businesses
Some grants and funding from federal agencies are sometimes targeted to only one of these subdivisions. Although they are not as major as those granted for generally for all minority-owned businesses, these are also opportunities you would not want to miss out.
If you business falls under one of these categories, having a minority-owned business certification almost instantly qualify you.
Get Certified With the Help of Our Government Sales Team
Overall, the certification process is an important step for minority-owned small businesses looking to access government and corporate contracts, providing them a competitive edge and increased visibility in the marketplace. Furthermore, it's a way to support the Federal government's goal of increasing the percentage of contracts awarded to minority-owned small businesses.
Our government sales team can assist you in obtaining a minority-owned small business certification. We understand the process can be complex and time-consuming, so we offer our expertise to guide you through the application process and ensure that all the necessary documentation and requirements are met.
Our team will work closely with you to review your business's ownership, management, and financial status, and ensure that all the necessary criteria are met for certification. We will also help you gather and prepare all the necessary documentation, such as proof of ownership, financial statements, and other required materials.