1. What is a Minority Business Enterprise (MBE)?

An MBE is a for-profit enterprise, regardless of size, physically
located in the U. S. or its trust territories, which is 51 percent owned,
managed, operated and controlled by an ethnic minority or a group
of ethnic minorities on a day-to-day basis.

2. What is an ethnic minority?

An ethnic minority is an individual whose origin or heritage is of or from:
·any of the Black racial groups of Sub-Sahara Africa (African-Americans)
·any of the Spanish speaking countries of Latin America, Mexico, Central
America, South America, the Caribbean and Brazil (Afro-Brazilian and
Brazilian Indians only) (Hispanic-Americans)
·American Indian, Eskimo, Aleut or Native Hawaiian (Native Americans).
Native Americans must be documented members of a North American tribe,
band or organized group of native people indigenous to the continental U.S.
·Bangladesh, Cambodia, China, Guam, India, Indonesia, Japan, Korea, Laos,
Malaysia, Pakistan, the Philippines, Samoa, Thailand, Sri Lanka, Taiwan, the
U.S. Trust Territories of the Pacific or the Northern Marianas and Vietnam.
(Asian Americans, Pacific Islanders, Asian Indian Americans)

3.What groups are not considered ethnic minorities?

Individuals whose origins or heritage are of or from:
·Iberian Peninsula (Spain, Portugal)
·Asia Minor Region (Peninsula between the Black Sea and the Mediterranean)
·Persian Gulf (Iran, Iraq, Saudi Arabia)
·Europe
·Northern Africa (Egypt, Libya, Morocco, Algeria)

4. What is MBE Certification?

MBE Certification is the process by which an applicant’s business status
is validated by a certifying agency as being at least 51 percent owned,
managed, operated and controlled by an ethnic minority or a group of
minorities. The Council certification is in accordance with NMSDC guidelines.

5. What is NMSDC?

Chartered in 1972, NMSDC (National Minority Business Supplier
Development Council) is the premier minority business advocacy
organization in the U.S. The Council operates and adheres to standards
under an affiliation agreement with NMSDC, and By-laws and policies
adopted by The Council’s Board of Directors. NMSDC’s vast network
includes 39 regional Councils nationwide, more than 3,500 of the world’s
largest publicly, privately, and foreign-owned corporations,
and more than 15,000 MBEs. NMSDC’s objective has been the parity for
minority-owned business firms within the free enterprise system.
You can visit them on the web at www.nmsdcus.org.

6. What is the cost of MBE Certification?

The cost of certification is a non-refundable fee of $250.00.

7. How long is Certification valid?

MBE certification is valid for one year.

8. What is Re-certification?

Re-certification is the renewal of your MBE certification status, upon expiration of your annual certification. The process requires you to update your company and contact information (e.g., gross annual sales and financial information), and is not as extensive as the original certification process, except in cases of company name and ownership changes. The annual re-certification fee is $150.00.

9. What is Reciprocal Certification?

Reciprocal Certification is the certification by an NMSDC affiliate council of an MBE already certified by the MBE’s home council, and whose certification is in good standing. The council from which you request reciprocal certification obtains a copy of your certificate from your home council to verify your standing, and upon receipt of your completed notarized reciprocal application, initiates the reciprocal certification process.


10. What qualifies me to become MBE-certified by RMMSDC?

  • Your company must be at least 51% owned, by an ethnic minority or a group of ethnic minorities on a day-to-day basis.
  • Owner(s) must be U.S. citizens. Green Card holders/resident aliens are not eligible for certification.
  • Your company must be headquartered in Colorado, Wyoming, Utah, or New Mexico




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Topics covered in this FAQ:

  1.  What is a Minority Business Enterprise (MBE)?
  2.  What is an ethnic minority?
  3.  What groups are not considered ethnic minorities?
  4. What is MBE Certification?
  5.  What is NMSDC?
  6.  What is the cost of MBE Certification?
  7.  How long is Certification valid?
  8.  What is Re-certification?
  9.  What is Reciprocal Certification?
10. What qualifies me to become MBE-certified by RMMSDC?
11.  What benefits do MBEs receive from The Council’s certification?
12.  Why is it important that suppliers be certified? Why do majority corporations often require NMSDC/The Council certification before doing business with them?
13.  What is a “Member”?
14.  What is MBISYS?
15.  How long will it take to become certified?
17.  What is the process?
18.  What is a Site Visit?
19.  Am I required to complete every item in the application?
20.  Will I need to supply all documents with my application?
21.  What documents are required to determine my eligibility of MBE status?
22.  Can a start-up business become certified by The Council?
23.  I work out of my home. Does my company still qualify for certification?
24.  What is an 8(a) certification number?
# What is and where can I find a D&B D-U-N-S Number?
25.  What are NAICS codes?
26.  Why do you ask for my financial information and what financial information will I need to provide?
27.   am a new start-up business and my company has no financial or income statements at this time. What should I do? Can I still be certified?
28.  If the bank will not give me a “Bank Signature Card”, what should I do?
29.  I am the ethnic minority business owner; however, I do not sign checks and am not on the checking account for my company. Do I still qualify for certification?
30.  What other documents may be used to prove my ethnicity?
31.  I am a Native American, how do I prove my ethnicity?
32.  Will my company need a business license?
33.  What is the Confidential Disclosure Agreement?
34.  What is a "DBA" and/or "FBN"?
35.  What should I put under "Equipment Information"?
36.  What should I put under "Construction Information"?
37.  What kind of "History" is required about my company?
38.  What is a company’s Certified Articles of Incorporation?
39.   Which “Minutes” should my company provide?
40.  I have yet to file my income taxes this year. What should I do?
41.  What is an "Affidavit of Applicant"?
42.  What are“Minority Group Members”?
43.  If I am not a United States Citizen but I am a Resident Alien with a Green Card, is my business still eligible for certification?
44.  What is the definition of ownership as being the 51% owner?
45.  What are Customer Business References?
46.  What is a Balance Sheet?
47.  What is an Income Statement?
48.  What are you referring to when you say "Plant"?