SBE Certification

What is SBE Certification?

Small Business Enterprise (SBE) Certification is a denotation that is given to businesses that are majority-owned by businesses that make < $750K annually and < 100 employees. The annual volume and number of employees may vary by industry. The SBE Program was created in an attempt to make all state contracts, opportunities, and benefits available to small businesses without discrimination based on race, color, religion, national origin, disability, age, or ancestry.

Do you really need to be certified?

Large corporations have rolled out supplier diversity programs to help streamline their use of diverse suppliers and increase their overarching SBE spend. The United States Federal Government has requirements for businesses to maintain a certain level of SBE spend before they may be considered for any government contracts. Companies that source small business suppliers often see the benefits of these symbiotic relationships come in the form of both state and federal tax breaks and incentives. There are numerous programs on both a federal level and state level that offer tax incentives for business that procure certified SBEs. However, many organizations require third-party or governmental certification for businesses to be considered eligible for supplier-diversity programs. Therefore, a third-party certification and vetting are necessary for you to take advantage of these benefits.

What other benefits are there to certification?

In addition to the access to corporations and diverse businesses mentioned above, other benefits to certification include:

  • Networking opportunities

  • Exposure for your business

  • Education and training opportunities

  • Mentorship from more seasoned certified SBEs in your field

Minimum Requirements

-Business is at least 51% owned and controlled

– Owner must be a U.S. Citizen or legal resident

Note: SBE requirements vary by state and industry, so you should check for additional information.

Additional Resources