The eligible owner(s) controls 100% of the firm. An “eligible owner” is an individual who meets the requirements of items (2) and (3) below.
Gross sales receipts of the firm do not exceed $7,500,000 averaged over a five-year period.
The eligible owner’s personal net worth does not exceed $1.32 million.
The eligible owner(s) is actively involved in the day-to-day management and control of the firm, as well as the delivery of its products and services.
The firm is a bona fide existing business that performs work for the purpose of making a profit. A newly formed firm may be certified. Not-for-profit organizations are not eligible to be certified as SBEs.
The firm is independent as indicated by the absence of control or influence of a non-SBE firm. The firm does not share personnel, facilities, equipment, financial or other resources with a non-SBE firm. The firm is not “affiliated” with a non-SBE firm as defined by Small Business Administration Regulations, 13 CFR part 121.
The firm seeking SBE certification must cooperate fully with the Department’s requests for information relevant to the certification process. Failure or refusal to provide such information may result in denial or removal of certification.
Be a small business as established by the Small Business Administration (SBA). The firm’s annual gross receipts averaged over three years cannot exceed $28.48 million. Actual thresholds depend on the specific type of work the firm performs (See Application Forms for specifics).
Firms must be at least 51% owned and controlled by socially and economically disadvantaged individuals. Most minority classes and all women are considered socially disadvantaged. Owner’s whose personal net worth is less than $1.32 million (not including your primary residence and business) are considered economically disadvantaged. If the owner has the ability to accumulate wealth you may not meet the standard.
Owners must demonstrate they “control” the firm. That is have the final decision making authority, hold the highest position in the company, and have the knowledge, education, and /or experience in the specific type of work the firm performs. If the owner(s) have outside employment, you may not meet the standard for control. For more information please read the brochure.
Firms must be independent – i.e., the viability of the firm is not dependent on another firm. An independent firm cannot share personnel, equipment, or facilities.