Business Classifications
Minority-Owned Business Enterprise (MBE)
A business that:
- is a sole proprietorship, partnership, joint venture or corporation which is at least 51% owned, controlled and operated by one or more persons who are African-American, Latino or Asian-American; and
- whose management and daily operations are controlled by one or more of the African-Americans, Latinos or Asian-Americans who own it.
Women-Owned Business Enterprise (WBE)
A business that:
- is a sole proprietorship, partnership, joint venture or corporation which is at least 51% owned, controlled and operated by a woman or women; and
- whose management and daily operations are controlled by one or more of the women.
Disadvantaged Business Enterprise (DBE)
A DBE is a small, for-profit business concern:
- that is at least 51 percent owned by one or more individuals who are socially and economically disadvantaged, or in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and
(Note: Owners must be able to establish at least 51% ownership through real and substantial investment of capital.) - whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it;
(Note: Owners must possess the power and expertise to control the daily operations and management of the firm); and - meets all certification criteria under 49 CFR Part 26.
(Note: Socially disadvantaged individuals are people the federal government has concluded, based on historical and anecdotal evidence, may be subject to racial or ethnic prejudice or cultural bias within American society because of their identity as members of a group, without regard to their individual qualities.Groups presumed by the federal government to be socially disadvantaged include women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans and Asian-Indian.
To qualify as a DBE, owners must be able to document that their adjusted personal net worth does not exceed $750,000, after excluding the individual's ownership interest in the firm and the equity value of the individual's primary residence.
The disadvantaged owner must be a U.S. citizen or lawfully admitted permanent resident of the United States.
The firm must meet U.S. DOT gross receipt averaged over a three-year period of no more than $17.42 million, as it may be adjusted by the Secretary of Transportation from time to time.)
Small Disadvantaged Business (SDB)
A business that is:
- owned by a U.S. citizen; and
- is 51% owned and controlled by one or more socially and economically disadvantaged individuals.
