The SBA provides free one-on-one counseling through a network of partners to assist in preparing application packages for certification in the 8(a) program. Contact your local district office for more information.
Perks: The 8(a) program offers specialized business training, counseling, and marketing assistance in addition to giving participants access to reduced competition and sole source contracts. Some 2008 training programs that were offered to 8(a) participants included 'Contract Law and the Legal Aspects of Owning an 8(a) firm'; 'Developing a Winning Cost Proposal'; 'Strategic Marketing'; and 'Government Contract Negotiations'.
Cost of certification: Free
Dig Deeper: 8(a) Program
How to Become a Certified Minority-Owned Business: State and Local Programs (MBE)
Many states and cities also have minority-owned business programs, which are often referred to as Minority Business Enterprise (MBE) programs. Maryland, for instance, has a legally mandated program that requires 25 percent of all government contracts to be filled by minority-owned businesses.
'It really is a gateway for Maryland businesses to access state and local contracting opportunities,' Special Secretary Jenkins says. About $1.65 billion in government contracts have been awarded through the Maryland MBE program, and Jenkins says that the state is poised to meet its ambitious 25 percent goal next year.
Even though only 15 states have formal targets in place for awarding contracts to minority-owned businesses, nearly all of them have some type of goal. 'It really is in the state's best interest to use all of our small businesses, including our minority- and woman-owned firms,' Jenkins says.
Who is eligible: For most programs, at least 51 percent of a business needs to be owned by a member of a minority group in order to qualify for certification.
How to apply: Contact your state or local program for instructions.
Perks: Many states offer programs in addition to favorable contract circumstances for minority-owned businesses. Maryland, for instance, hosts a traveling training conference in six different regions for minority-owned businesses.
Cost of certification: Varies
Dig Deeper: Rethinking Minority Business
How to Become a Certified Minority-Owned Business: Department of Transportation's Disadvantaged Business Enterprise Program
Since 1998, the Department of Transportation (DOT) has required that at least 10 percent of money spent on contracts for certain projects go to minority-owned businesses. Departments that receive DOT funding, such as state transportation agencies, need to develop Disadvantaged Business Enterprise (DBE) programs in order to assure that they are complying with this requirement.
Who is eligible: Small businesses that are at least 51 percent owned by a socially and economically disadvantaged individual, defined as someone who is a member of a minority group, a woman, or, in some cases, has a disability. Regardless of social disadvantage, a person with a net worth of more than $750,000 cannot qualify for a DBE program. The disadvantaged person must also be in control of their business and able to direct the management of the firm.
How to apply: Contact your state or local transportation entity for an application. Expect to provide documentary evidence of your company's size, independence, and ownership and control. There is often an on-site visit as part of the application process. If your state has more than one DBE program, you only need to apply for one certification that will be honored by all of that state's programs.
Perks: Some state Minority Business Enterprise programs accept DBE certification.
Cost of certification: Free
Dig Deeper: How to Become a Certified Woman-Owned Business
How to Become a Certified Minority-Owned Business: Additional Resources
The Minority Business Development Agency's website
Government resources for minority-owned businesses
The National Minority Supplier Development Council's website
The SBA 8(a) program website
The Department of Transportation's DBE website
