I talk with many people each week who tell me they would like to obtain a minority business certification. One of the first things that I say in my conversations is always to ask them “what is your target market?” Many firms reply either “all” or that they don’t really know. Applying for, and complying with certifications that a firm does not use can be time consuming. Therefore, I have put together a list of the various types of minority business certifications, and how and when each should be used.

Certification - 8(a) Certification

Issuer - US Small Business Administration (SBA)

The 8(a) Certification is the “crown jewel” of business certifications.  The average 8(a) firm has over $6MM per year in federal revenue.  The 8(a) Certification also has the most stringent requirements of all certifications and is the only minority owned business certification recognized by the federal government for the award of federal contracts.

Certification - MBE Certification, Unified Certification, HUB, Edge, SWAM, etc.

Issuer - State and Local Governments

Percentage of state and local government contracts is earmarked for firms with these certifications.  Additional price preferences are often given in competitive bid situations.      

Certification - Disadvantaged Business Enterprise Supportive Services (DBE/DD)

Issuer - U.S. Department of Transportation

This certification is generally used to provide construction firms with preferential treatment in the award of state highway contracts that are being built with federal grants.

Certification - NMBDC Certification

Issuer - National Minority Business Development Council (NMBDC)

1,750 Corporate Members including America’s top publicly-owned, privately-owned and foreign-owned companies.

Certification - Airport Disadvantaged Business Enterprise Program (ACDBE)

Issuer - Federal Aviation Administration

383 Primary Commercial Service Airports are covered by this program. Approximately $2.5B leases and awards to disadvantaged firms typically covering Airport Concessions, Services and Rental Car Services.

If you are wondering how each of these business certifications could be an advantage to help expand your business through federal contracting, a good first step would be to contact a consulting firm that specializes in federal and state certifications. Companies like ez8a have the experience and expertise to quickly evaluate your firm's potential in contracting through federal and state minority certifications.