Documentation required for diverse business certification (Minority/Women/Veteran)?
As part of any company’s infrastructure, documentation is a vital component. When it comes to certification and quality assurance, it means there are plenty of requirements for different kinds of documents and information needed for one’s certification. Understanding and managing the documentation to validate business certification is vital to the application process.
So, let’s go over some vital documentation for diverse business certification programs.
Diverse Business Certification for Minority Enterprise
Minority Business Enterprise Certification (MBE) is a certification of the U.S. federal government that certifies whether a business is at least 51% owned, operated, and controlled by American citizens who are socially and economically disadvantaged.
A certified minority business enterprise can provide goods and services for government-funded projects and programs. In addition, the Internal Revenue Service will waive the $1,000 tax liens for debt incurred before receiving certification as a minority business enterprise. The MBE designation generally allows companies to compete more effectively for contracts with state and local governments and receive incentives from private sector organizations adopting diversity programs.
Eligibility for Minority-Owned Businesses
To qualify as a minority business enterprise,
- The company must be at least 51 percent owned, operated, and controlled by socially and economically disadvantaged individuals.
- Must be in a minority group: Black, Hispanic, American Indian, or Alaska Native.
- For sole proprietorships. A current copy of the owner’s identification card and a letter from the owner attesting to their disadvantaged status
- For businesses other than a sole proprietorship, a copy of documents verifying that the business
- has been operational for at least three years before being certified.
- maintained at least 50 employees for two years after certification.
- met all the performance standards in its most recent award year.
- The disadvantaged owners must be citizens or permanent residents of the US. There is no requirement that all owners be from the US.
Documents needed for Minority-Owned Diverse Businesses
- Proof of being a citizen or permanent resident of the United States (e.g., U.S. passport)
- A copy of your Company’s Employer Identification Number (EIN).
- Proof of being an individual of one or more minority groups (e.g., a certified copy of a birth certificate showing the applicant’s race).
- Official U.S. birth certificate or passport of the company’s owner(s) (e.g., official birth certificate for a natural-born U.S. citizen or certified copy of the U.S. passport).
- Proof of ownership and control of 51 percent or more of the company’s stock by individuals reflecting the requisite social and economic disadvantage (e.g., a notarized statement from each disadvantaged owner describing his share, number of shares held, etc.)
- Either a current copy of your State’s Minority Business Development Agency or Department certification report or online proof (e.g., credit card record, check record).
- Current bank statement for the last three months.
Before applying for a new certification, reviewing the application to ensure everything is there is a good idea. Following submission, you will receive two letters: documentation of receipt and documentation of consideration. The former proves that your request was processed and confirms that it has been reviewed.
Also Read: Tips For Minority Owned Business
Diverse Business Certification for Women Enterprise
A Business Certification of women-owned business enterprises (WBE) is a certification program implemented by the United States Government for industries that benefit from women’s employment. Such companies allow women to gain business experience and learn the skills necessary to create wealth.
The U.S. Government will waive some of the requirements for the HUB program (National Advisory Committee on Women’s Business Ownership). In particular, the federal government will accept WBE status instead of certification from the National Advisory Committee on Women’s Business Ownership (NAC) as long as the company has a positive net worth, minimizes debt, and is not owned or controlled by a husband or family member of the owner or key management. In addition, some states will also waive requirements for WBE status, up to $200,000 of capital investment.
Eligibility for Women-Owned Businesses
To qualify as a Woman-Owned Business Enterprise(WBE), a business must meet the following criteria:
- Must be at least 51 percent owned and operated by a woman.
- Must be a U.S. citizen or permanent resident.
- The woman who is the owner must be in charge of the management of the business, which means that she has the final say on how products and services are provided to customers and could participate in decision-making processes involving the business’s daily operations.
- The business should qualify as a small business per SBA standards.
Documents needed for Women-Owned Diverse Businesses
- Proof of legal entity (articles of incorporation, partnership agreement, and so on).
- Current bank statement for the last three months.
- Proof of ownership in the name of the woman and WBE [e.g., notarized letter from the business owner (or designee), a photocopy of the latest tax return, corporate minutes].
- Official U.S. birth certificate or passport of the company’s owner(s) (e.g., official birth certificate for a natural-born U.S. citizen or certified copy of the U.S. passport). If you are a permanent resident, you must product the green card for verification.
- Proof that the woman is the owner or key decision maker [e.g., a notarized letter from the business owner (or designee), a photocopy of the latest tax return, corporate minutes].
Also Read: How Getting a Certification Can Help Women Owned Small Business Grow?
Diverse Business Certification for Veteran Business Enterprise
Business Certified for Veterans are businesses primarily owned, managed, and controlled by members of the Armed Services (ARMY, MARINE CORPS, NAVY, and AIR FORCE) or a veteran such as retired members of the Armed Forces.
Businesses with veteran owners are eligible for participation in the SBA 8(a) Business Development Program, designed to assist small businesses owned by service-disabled veterans and other socially and economically disadvantaged individuals in competing for government contracts. The program offers technical assistance, pre-qualified supplier lists, goal-oriented business counseling, and marketing and management training. In addition, there is a requirement that “at least 51 percent of the employees performing work must be veterans”.
Eligibility for Veteran-Owned Businesses
To qualify as a Veteran Business Enterprise, a business must meet the following criteria.
- Be owned by or in partnership with owners who are retired members of the Armed Services.
- The company must be at least 51 percent owned by an individual who served on active duty, including members of reserve components, and who was separated under other than dishonorable conditions during any part of continuous military service after September 11, 2001.
- The owner must be a U.S. citizen or permanent resident.
- The company can be a sole proprietorship, a general partnership, or a limited liability company (LLC). However, it must register and elect SBA as its representative to receive assistance from the 8(a) program and to establish the goal of contracting with the government.
- The owner must have complete control over the company.
- The owner works full-time in the business.
Documents needed for Veteran-Owned Diverse Businesses
- Certified copy of military discharge papers [DD214].
- Proof of legal entity (articles of incorporation, partnership agreement, and so on).
- Current bank statement for the last three months.
- Proof of ownership in the name of the owner and the business [e.g., a notarized letter from the business owner (or designee), a photocopy of the latest tax return, corporate minutes].
- Official U.S. birth certificate or passport of the company owner(s) (e.g., official birth certificate for a natural-born U.S. citizen or certified copy of the U.S. passport).
- Proof that the owner is a U.S. citizen or eligible non-citizen (e.g., a notarized letter from the business owner (or designee), a photocopy of the latest tax return, corporate minutes].
- Veteran/Military ID.
Also Read: All you need to know about getting veteran-owned business certification
How to Get Certified?
- You must contact a Business Certification Specialist at the U.S. Small Business Administration (SBA) by calling 1-800-827-5722 or visiting the SBA website.
- Complete a certification form, including an SBA application packet, and pay the fee online at the SBA website or visit an SBA Certified Local Agent.
- In addition to documentation, the SBA application packet should include the following:
- Proof that the owner(s) are US citizens or eligible non-citizens (e.g., a notarized letter from the business owner or designee, a photocopy of the latest tax return, corporate minutes).
- Submit all required papers to an SBA Certified Local Agent. The agent will assist you in submitting your application to the SBA over mail and phone.
- After certification has been issued and verified by U.S. Small Business Administration, you will receive a Certificate of Eligibility for any of the benefits mentioned above.
With the United States government investing billions of dollars in social and economic development, the time is now to become certified. The certification process is simple, but just like applying for a job. The diverse business certification process will allow you and your business to increase growth opportunities. It also gives your business access to government contracts and programs. Furthermore, it will also allow you access to national and international markets, which can minimize competition and place your business on top.
58Joralemon is an easy-to-use, all-inclusive solution for businesses seeking to verify their eligibility as minority-owned, women-owned, or veteran-owned businesses. Our platform simplifies the process by capturing and submitting the information and documentation to certify your business.
Get a copy of our small business guide to know more about certifications for your business.
