Civil Rights

To apply for certification as a Disadvantaged Business Enterprise (DBE), your firm must meet the following eligibility criteria:

Social and economic disadvantage

The socially and economically disadvantaged individual who owns the business (SEDO) must be a U.S. citizen or lawfully admitted permanent residents of the United States, and be a member of a socially and economically disadvantaged group:

• Women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans and Subcontinent Asian Americans are presumed disadvantaged.
• Those who are not a member of the groups listed above can apply as a non-presumed disadvantaged individual. However, they will need to demonstrate how experiences and circumstances have made them socially and economically disadvantaged.
• The SEDO's personal net worth must not exceed $2.047 million.

Ownership

Must be a for-profit small business in which SEDO(s) own at least 51 percent interest and:

• Ownership must extend beyond a formal arrangement
• SEDO's acquisition of ownership must be through investment as defined by 49 CFR 26.69 (c)
• If ownership investments are funded through a loan, SEDO(s) must have paid at least 15% of the loan amount, and
• Proof of contribution is documented.

Transfer of ownership from a non-disadvantaged individual is insufficient, unless it is performed as a gift from a party that has no further involvement in the company and is documented.

Independence

Only an independent business may qualify as a DBE:

• The firm must not regularly use employees, equipment, space and other resources with another firm, and if sharing of resources occurs, the firm must prove viability of the company without the use of shared resources.

Control

The SEDO(s) controls the overall management, operations and policies, and:

• The SEDO is the ultimate decision maker,
• Holds the highest officer position,
• Must have present control of firm’s board of directors, other governing body, or serve as general partner, with control over all partnership decisions (depending on structure),
• Controls day-to-day and long-term operations, and
• Retains technical competence and experience directly related to the type of work certification thatis being sought.

Business requirements

To be an eligible DBE, a firm must be an existing small business:

• Three-year average gross receipts cannot exceed $30.72 million, and
• Meets the Small Business Administration (SBA) size standards based on a five-year average of gross receipts for the specific NAICS codes that apply to the firm's work

Out-of-state firms

A firm located outside the state of Minnesota must obtain certification from the jurisdiction of original certification (JOC) before seeking certification in Minnesota. The JOC is the state in which the firm maintains its principle place of business at time of application. If you are DBE-certified in your JOC and would like to become certified in Minnesota, please provide:

• a cover letter that specifies interest in applying for interstate certification and identify all UCPs in which the DBE is certified including the JOC UCP,
• an electronic image of the UCP directory of the original UCP that shows certification,
• and a new Declaration of Eligibility.

Email this to MnDOT Office of Civil Rights.

Authority

• Code of Federal Regulations (CFR), Part 26, Subpart D, Certification Standards

To apply for certification as a Targeted Group Business, your firm must meet the following eligibility criteria:

Group membership

The individual applying for certification must be a U.S. citizen or lawfully admitted permanent resident of the U.S., and be an economically disadvantaged member of a qualifying group:

• Woman, racial minority, or person with a substantial physical disability
• Personal net worth not to exceed $1.32 million

Ownership

Must be an existing small business in which a qualifying individual owns at least 51 percent interest:

• Ownership must extend beyond a formal arrangement, and
• Proof of contribution is documented with purchase agreement, proof of purchase, and bill of sale.

Transfer of ownership or assets from non-qualifying individual within two years is insufficient.

Independence

Only an independent business may qualify as a TGB:

• The firm must not share employees, equipment, space and other resources with another firm

Control

The qualifying owner controls the overall management, operations and policies, and:

• Holds the highest officer position,
• Controls day-to-day and long-term operations, and
• Retains technical competence and experience directly related to the type of work certification is being sought.

Business requirements

Must be an existing small business, located within the state of Minnesota, and:

• Does not exceed the State of Minnesota Size Standards
• Three-year average gross receipts cannot exceed $23.98 million

Ineligible businesses

• Brokers, third-party lessors, and franchises are not eligible for TGB certification.

DBE firms seeking TGB certification

Minnesota-based DBE firms seeking TGB certification do not require formal application. DBE/TGB certification reciprocity may be requested by emailing Procurement.Equity@state.mn.us.

Authority

• Small Business Procurement Programs, Minnesota Rules, Chapter 1230

To apply for certification as a Veteran-Owned Small Business (Vet), your firm must meet the following eligibility criteria:

Ownership

Must be an existing small business in which a veteran or service-disabled veteran owns at least 51% interest:

• Ownership must extend beyond a formal arrangement, and
• Proof of contribution is documented with purchase agreement, proof of purchase, and bill of sale.

Transfer of ownership or assets from non-qualifying individual within two years is insufficient.

Status verification is required and can be obtained from the Minnesota Department of Veteran Affairs (MDVA).

Independence

Only an independent business may qualify as a Vet:

• The firm must not share employees, equipment, space and other resources with another firm.

Control

The qualifying owner controls the overall management, operations and policies, and:

• Holds the highest officer position,
• Controls day-to-day and long-term operations, and
• Retains technical competence and experience directly related to the type of work certification is being sought.

Business requirements

Must be an existing small business, located within the state of Minnesota, and:

• Meet State of Minnesota Size Standards
• Three-year average gross receipts cannot exceed $23.98 million

Ineligible businesses

Brokers, third-party lessors, and franchises are not eligible for Vet certification.

Authority

• Small Business Procurement Programs, Minnesota Rules, Chapter 1230
• Minnesota Statutes, Section 197.447