Are you a minority business owner? If yes, consider becoming certified as a minority owned business. Government agencies and corporations are willing to conduct business and buy from minority owned companies, so being certified will make your business more appealing. The reason why corporations are willing to do business with minority owned businesses is that they realize that US minorities have great purchasing power.
It’s no surprise that minority business owners may have a difficult time obtaining access to working capital to grow and expand their business. Fortunately, firstamericanmerchant.com, a reputable business loan provider and high risk payment processor, offers exceptional business funding opportunities to minority owned businesses. If you’re a minority owned business, turn to First American Merchant to get the necessary business funding for your company. FAM is an award-winning alternative online lender that boasts an A+ rating with the BBB.
How to Get Officially Certified as a Minority Owned Business?
Below you can find the main options you can choose to officially certify your business as minority owned.
- The National Minority Supplier Development Council (NMSDC)
The National Minority Supplier Development Council matches certified minority owned businesses with members of their network who are in need of buying products, services, and solutions.
To qualify for the certification process and to be considered a Minority Business Enterprise (MBE), minimum 51% of the business must be owned by a US citizen who is Asian, African American, Hispanic, or Native American. In case, the business is a publicly owned one, the individual must own at least 51% of the stock.
- Department of Transportation (DOT)
The Department of Transportation (DOT) requires that minimum 10% of their budget is designated for contracts awarded to minority owned businesses. Departments that get funding from the DOT, including state agencies, must develop Disadvantaged Business Enterprise (DBE) programs. Each DBE is required to create annual goals that include establishing contracts and specific subcontract goals.
To be recognized as a DBE, individuals must go through their state department of transportation. Each agency offers a DBE Site.
- State and Local Agency Certification
The majority of state and local agencies have minority owned business programs. It’s required that 51% of the company is owned by a member of a minority group. Individuals should check with their state to find out what programs are available to them.
Take the time to research all the available options and choose the right one that best suits your business needs. Get certified as a minority owned business and take advantage of all the benefits associated with it.