How to get certified as a minority-owned business

Small business ownership among minority entrepreneurs has grown tremendously in the past decade, now comprising 21% of U.S. businesses, over $1.5 trillion in annual sales, and over 4.5 million jobs. But even as the number of minority-owned businesses trends upward, owners continue to face obstacles like difficulty finding mentors and funding opportunities.

Fortunately, the United States offers both national and state certifications for minority-owned businesses to help you overcome these challenges. Here’s how to get certified as a minority-owned business both nationally and in your state.

What counts as a minority-owned business?

A minority business enterprise (MBE) is a for-profit United States business that is 51% or more owned or managed by a person or people who are at least one quarter South Asian, East or Southeast Asian, Black, Hispanic, indigenous American, or Pacific Islander. For publicly traded businesses, at least 51% of the stock must be owned by one or more such people.

This is the definition used by the National Minority Supplier Development Council (NMSDC), a nonprofit advocacy organization dedicated to improving socioeconomic equality and growth for business owners of color. If you meet the above criterion, you can certify your business as an MBE with the NMSDC online. 

In addition to registering with the NMSDC, you can access federal contracts for minority-owned businesses by registering with the Small Business Administration’s 8(a) Business Development Program, and local procurement contracts by registering with your state or local government.

5 benefits of getting certified as a minority-owned business

Getting certified as a minority-owned business can open more paths to business growth. Here are a few of the ways this certification can help your business grow.

1. Win government contracts for minority-owned businesses

The United States government awarded 28.4% of federal procurement contracts to small businesses in 2023, with 12.1% of those going to MBEs. Many state governments commit to higher percentages—for example, New York, Illinois, and California set aside 30%, 20%, and 15% of public contracts for minority-owned businesses, respectively.

You can improve your ability to win government contracts by registering with the SBA’s 8(a) Business Development Program.

2. Qualify for financial programs and assistance

In addition to government contracts, many private organizations offer grants, loans and financial assistance to minority-owned businesses. Corporations may also provide diversity initiatives when selecting vendors. Being a certified MBE will qualify you for these opportunities, which may allow you to access new revenue streams and establish partnerships with larger companies.

3. Differentiate your brand

Today, customers and corporations factor diversity and equity into their purchasing and contracting decisions. For these potential customers, being an official minority-owned business can give you a competitive edge—especially in crowded markets or industries with historically low participation from people of color.

4. Network and partner with minority-owned vendors

Getting approval from organizations like the NMSDC and SBA connects you to networks of minority-owned businesses and corporations, opening the door to partnerships, mentorship programs, and conferences. This means direct contact with potential vendors, government agencies, and other professionals who can help expand your business reach.

5. Access business workshops and training programs

Just as state governments and nonprofit organizations provide procurement contracts to MBEs, some—like the NMSDC and SCORE, for example—offer mentorship programs, workshops, and technical training to minority entrepreneurs. Community-specific organizations such as The Black Upstart or the Latina Entrepreneur Academy provide even more specialized training. 

While these programs often don’t require an MBE certification, earning that certification will give you access to the NMSDC’s resource directories, as well as more exclusive opportunities. 

What’s the process of getting certified as a minority-owned business?

Here, we’ll show you the three different ways you should get certified as a minority-owned business—through the NMSDC, the SBA, and your local government(s). 

Getting certified through the National Minority Supplier Development Council

The NMSDC offers opportunities to network, collaborate, learn, and win contracts with other minority business owners. Their application review is fairly rigorous, and decisions can take up 90 days. 

To get your MBE certification with the NMSDC, follow the steps below.

1. Gather the required documentation, such as business formation documents, corporate bylaws, proof of EIN, and proof of citizenship and ethnicity. The documentation required varies based on your business entity—click here to see the complete list.
2. Register with the NMSDC’s website and fill out the online application. (As of 2025, you’re no longer required to register with your regional NMSDC office.) The NMSDC offers pre-certification workshops and videos to help you prepare for certification.
3. Pay the application fee online via credit card. Fees vary by location and entity type, and are non-refundable. If this application fee is an obstacle, your business may qualify for reimbursement.
4. The NMSDC’s certification team will assess your application and contact you if they have any questions or need additional documents. They’ll also contact your customer references and assess your business via a virtual interview, physical site visit, or both.
5. The certification team will recommend a decision to the board of directors based on all of the above, then the NMSDC will notify you with the board’s final decision. 

Getting certified through the SBA 8(a) Business Development Program

By registering with the SBA’s 8(a) program, you’ll receive additional support when trying to secure federal contracts, loans, business mentors, and business training. You can get a preliminary assessment of whether you’ll qualify and benefit by filling out the questionnaire on MySBA Certifications. You must meet the following criteria to qualify:

• This is your first time registering with the 8(a) program
• You’ve been in business for at least two years
• Your personal net worth is less than $850,000
• Your adjusted gross income is less than $400,000
• Your assets total less than $6.5 million

To get your MBE certification with the SBA, follow these steps:

1. Register with the SBA.
2. Identify your NAICS code(s), based on your business size.
3. Register your business in the U.S. government’s System for Award Management (SAM).
4. Fill out the online 8(a) application. You’ll need most of the same documents as you used for the NMSDC application.

Your application may take up to 90 days to process. If you’re approved, you’ll have up to nine years to benefit from the 8(a) program from the approval date. You can maintain your 8(a) MBE certification by staying within the requirements of minority-ownership and business activity.

Getting certified through your state or city

Locally, about half of U.S. states have state-level offices dedicated to the development of minority-owned small businesses. Some states also have city-level programs to further support these businesses, such as New York City’s Minority and Women-Owned Business Enterprises (M/WBE) Program, which allows businesses to be listed on a public directory of certified MBEs.

To start, click here to find your state’s office for minority business enterprises, then web search for any city government programs.

How to get certified as a minority woman-owned business​

There isn’t one certification for being both woman- and minority-owned, but you can apply for a Women’s Business Enterprise (WBE) certification (in addition to your MBE) via these entities:

• Women’s Business Enterprise National Council (WBENC)
• Small Business Administration
• State or city programs

Minority-owned business FAQs

Does my business qualify for a minority-owned business certification? 

To qualify for certification as a minority-owned business with the National Minority Supplier Development Council (NMSDC), your business must meet the following criteria:

• You and your business owners (if applicable) must be U.S. citizens
• Your business must be at least 51% minority-owned, managed, and controlled. (The NMSDC defines a minority as someone who is at least 25% Asian, Black, Hispanic, or Native American. For more on the countries of origin represented, see here.)
• The business must be for-profit and physically located in the U. S. or its territories.
• The minority owners must also participate in the daily management and operations of the business.

In addition, to qualify for the Small Business Administration’s 8(a) Business Development Program, you must meet the following criteria:

• You haven’t previously participated in the 8(a) program
• You’ve been in business for at least two years
• Your personal net worth is less than $850,000
• Your adjusted gross income is less than $400,000
• Your assets total less than $6.5 million

Local government MBE criteria vary by state or city.