MBE SPONSORS
What is an MBE?
As a NMSDC certified MBE, you are in the unique position to promote and market your services to prospective corporate buyers who are looking to build relationships with trusted minority business enterprises (MBEs). If your company wants to connect with private sector buyers, NMSDC’s certification is considered the platinum standard in supplier diversity and can improve your financial performance. We invite you to take a look at the benefits of being certified with us.
MBE Benefits
- Access to top corporate purchasing agents
- Inclusion in and access to the NMSDC supplier database
- Eligibility for participation in NMSDC development programs
- Access to Educational Programs
- Invitations to Networking Events
- Alerts for procurement opportunities from corporate members
MBE Certification Overview & Process
Use the information provided during the Pre-Certification Briefing to begin the certification process.
The applicant fills out the application online and submits all required documentation. Filling out the application is easy and convenient. You can log out and come back later to complete the application.
The application and documentation are reviewed by the Certification Specialist who validates and ensures that all the necessary information is present to proceed with the certification.
The Certification Specialist will schedule an appointment with the applicant to visit their business facility.
The Certification Committee meets regularly to review applications for MBE certification. The Certification Specialist presents all the information collected from the application documentation and site visit to the Certification Committee. The committee will then make a recommendation to approve or deny the MBE certification to the Board of Directors.
The Board of Directors reviews the certification application and the recommendation of the Certification Committee and makes the final decision to approve or deny the MBE certification.
- Minority Business Enterprise (MBE) must be a currently-functioning for-profit enterprise and physically located in the U. S. or its trust territories which:
- is an independent business concern that is at least 51% independently owned, managed and controlled by one or more minority group member(s)
- demonstrates the capability to perform a line of business
- provides a commercially useful business function according to customs and practices of the industry
- The controlling interest in a firm represented to be minority shall be by one or more CITIZENS OF THE UNITED STATES OF AMERICA. For the purposes of NMSDC’s program, a minority group member is an individual who is at least 25% Asian, Black, Hispanic or Native American.
- Asian-Indian: A U.S. citizen whose origins are from India, Pakistan and Bangladesh.
- Asian-Pacific: A U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.
- Black: A U.S. citizen who is of African descent (excluding Northern Africa).
- Hispanic: A U.S. citizen of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America and the Caribbean Basin only. Brazilians (Afro-Brazilian, indigenous/Indian only) shall be listed under Hispanic designation for review and certification purposes.
- Native American: A person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental United States and proof can be provided through a Native American Blood Degree Certificate (i.e., tribal registry letter, tribal roll register number).
- The minority ownership and control shall be real and continuing and not created solely to take advantage of special programs aimed at minority supplier development.
- The minority owner(s) shall enjoy the customary incidents of ownership and shall share in the risks and profits and shall have contributed capital, equipment and/or expertise to the business commensurate with his/her percentage of ownership.
- The contributions of capital or expertise by the minority owner(s) to acquire their interests in the firms shall be real and sustainable.
- To be considered operational, applicants must be able to produce supporting documents to show the company is operational and not a hobby. (i.e. business receipts.)
- The minority owner(s) shall possess the power to direct or cause the direction of the management and policies of the firm and shall possess the capability of making day-to-day as well as major decisions on matters of management, policy and operations of the firm. There shall be no restriction on the minority owner’s ability to control which would prevent the minority owner from making a business decision without the cooperation or vote of a non-minority person. Such control shall be known or at least tacitly acknowledged in day-to-day operations by employees and business references of the business. Where licenses are required to perform the functional mission of the company, such licenses shall be held in the name and/or independent control of minorities.
- All securities which constitute ownership of a corporation for purposes of establishing it as a minority business enterprise shall be held directly by the minority owner(s). No securities held in trust or by any guardian for a minority shall be considered held by minority persons in determining ownership and control of the corporation, except if certain conditions apply.
- Applicant must supply the Council with a copy of the documents (via NMSDC Central® portal upload) requested on the Certification Application Checklist that apply to the type of business enterprise in which the Applicant is engaged. Incomplete applications cannot and will not be processed. The Council reserves the right to request further information from the Applicant prior to or during the certification process. All materials submitted shall be retained by the Capital Region Minority Supplier Development Council. The applicant further agrees to allow CRMSDC representatives access to inspect the applicant’s place of business.
- All funds are non-refundable. You have a maximum of 90 days to submit your documentation from the date of payment. If you do not submit the required documents, CRMSDC reserves the right to administratively withdraw your file from the process.
To become certified, each applicant goes through a detailed process that determines if the applicant is at least 51% owned, managed and controlled by eligible ethnic minority US citizen(s) and operates an independent for-profit business. You must attend the MBE Pre-Certification Briefing that is held on the 1st Thursday of every month at 9:30 am. During the MBE Pre-Certification Briefing, information about NMSDC and CRMSDC are provided, and the certification application is reviewed in detail along with the process and the documentation. Applicants have found that by attending the Pre-Certification briefing, they get through the process quicker and submit substantially complete applications.
How to get started:
Before starting an application review the certification criteria and checklist to ensure that your business qualifies and collect the required documentation.
Step 1:
Register for and attend a Pre-Certification Briefing.
Step 2:
Complete the application online using the NMSDC Central® login instructions you received during the Pre-Cerfication Briefing. Notarize and upload the declaration; submit the payment, the application, and documentation online. The fee schedule is listed below.
Step 3:
A desk audit will be conducted. The desk audit is a review of the entire application and all supporting documentation. It is also during this stage where we contact your business references.
Step 4:
Once the desk audit is complete, the application goes into the site visit stage. The site visit is a personal visit to the applicant’s business to meet with principals and review certain documents to verify ownership, management and control functions. A report of the site visit is prepared and added to the file.
Step 5:
Your completed packet will be forwarded to the certification compliance committee for review and recommendation to the Board of Directors for action. The committee can make 1 of 4 recommendations:
Approval – The application and documentation satisfied NMSDC criteria and the committee has no questions.
Approved Pending – The committee had a question or needed clarity on a document. Once received from the applicant, the MBE is recommended for approval.
Tabled – The committee did not have enough information to approve or deny the file, need clarity on information submitted, and they would like to review the file again once the information has been received.
Denial – The applicant did not meet NMSDC’s criteria. The applicant has 30 days to appeal the committee’s recommendation.
Step 6:
The Board of Directors (represented by the Executive Committee) reviews and votes on the committee’s recommendations. All letters are prepared for signature after the vote.
Step 7:
All applicants receive a written notification of their status within one week. Firms that are approved are sent a “next steps” notification and an invoice for the annual fee.
Step 8:
After payment of annual fee, firm is granted certification that is good for 1 year and requires an annual renewal.
Fee Schedule
(All fees are non-refundable)
| Fee Category | Class I: Under $1M | Class II: $1M – $10M | Class III: $10M – $50M | Class IV: Over $50M |
|---|---|---|---|---|
| Application Processing Fee | $350 | $350 | $350 | $350 |
| Initial Certification Fee | $350 | $600 | $900 | $1200 |
| Expedited Processing Fee (as available) | $1200 | $1200 | $1200 | $1200 |
The Minority Business Enterprise (MBE) Subscription is a select add-on that provides a multitude of value-added services for MBEs. The MBE Subscription Services was created upon recognizing the need to help businesses make an even greater impact in the marketplace. MBEs are not required to purchase the subscription. Please note that certification and recertification fees are not part of the subscription.
All services will be available for certified MBEs who qualify based on National Minority Supplier Development Council (NMSDC) verification. These services will be provided annually and extend until your expiration date. *Subscription services are available to certified MBEs who are outside of CRMSDC, and who are certified and in good standing with a Regional Affiliate Council within the NMSDC network.
Fees for Subscription Services are billed based on Classes:
| Fee Category | Class I: Under $1M | Class II: $1M – <$10M | Class III: $10M – <$50M | Class IV: Over $50M |
|---|---|---|---|---|
| Fees for Subscription Services | $500 | $750 | $1050 | $1350 |
What is an MBE? A MBE (Minority Business Enterprise) eligible for certification through the CRMSDC must be a for-profit business that is owned, operated and controlled by a person (or persons) who is both a citizen of the United States, and who is ethnically at least 25% (by birth or bloodline) African-American/Black, Hispanic/Latino American, Native American, Asian-Pacific American, or Asian-Indian American.
WHAT IS MBE CERTIFICATION? MBE certification is the process by which the minority ownership status of a business is validated by the CRMSDC and its Certification Committee. The Committee determines, pursuant to the policies of the NMSDC, whether the approved business is owned, operated and controlled by person(s) who is determined to be a minority group member. CRMSDC certification is in accordance with NMSDC guidelines.
WHAT ARE THE BENEFITS OF CERTIFICATION FOR AN MBE?
- Validation of MBE status
- Opportunities to Sales and Marketing
- Access to Educational Programs
- Business Advisory Services
- Technical and/or financial assistance and support
- National/International Market Access
HOW DOES A CORPORATION/ COMPANY BENEFIT BY DOING BUSINESS WITH A CERTIFIED MBE?
- Cost effective
- Opportunity to identify potential strategic partners
- Expanding customer base/market share
- Access to emerging markets in urban and global markets
- Compliance with governmental requirements
- Contribution to the economic viability of MBEs and the communities in which they are located
- Assurance of NMSDC/CRMSDC certification quality and stringent requirements
WHO IS ELIGIBLE TO APPLY FOR CERTIFICATION? For purposes of National Minority Supplier Development Council’s (NMSDC) program, a minority group member is an individual who is a U.S. citizen with at least 1/4 or 25% minimum ownership (documentation to support claim of 25% required from applicant) and is a person whose bloodline reflects an indigenous heritage from the following countries:
- African-American – A U.S. citizen having origins in any of the Black racial groups of sub-Saharan Africa. These countries include the following: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of Congo (DRC), Côte d’Ivoire, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome & Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Western Sahara, Zambia, Zimbabwe. Afro-Caribbean descendants are also eligible.
- Latin-American – A U.S. citizen of trueborn Latin heritage from any of the Spanish speaking areas of the following regions: Mexico, Central America, South America and the Caribbean basin only. (Afro-Brazilian, indigenous/Indian only). These countries include the following: Mexico, Cuba, Dominican Republic, Honduras, Panama, Guatemala, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Costa Rica, Guyana, Paraguay, Peru, Uruguay, Venezuela, Belize, and Nicaragua.
- Native American – A person who is an American Indian, Eskimo, Aleut or native Hawaiian. Native Americans must be documented members of a North American tribe, band or organized group of native people who are indigenous to the United States. Proof must be provided.
- Asian, Asian Indian and Pacific Islander American – A U. S. citizen whose origins are from the Asian Pacific Islander region. These countries include Bangladesh, Cambodia, China, Guam, India, Indonesia, Japan, Korea, Laos, Malaysia, Pakistan, the Philippines, Samoa, Thailand, Taiwan, the U.S. Trust Territories of the Pacific or the Northern Marianas and Vietnam.
Being born in one of the countries listed above DOES NOT, by itself, qualify an individual as an ethnic minority.
WHAT GROUPS ARE NOT ELIGIBLE FOR CERTIFICATION? Groups not certifiable are those whose origins or heritage are of or from:
- Iberian Peninsula (Spain, Portugal)
- Asia Minor Region (peninsula between the Black Sea & the Mediterranean)
- Persian Gulf (Iran, Iraq, Saudi Arabia, etc.)
- Europe
- Northern Africa (Egypt, Libya, Morocco, Algeria, etc.)
DO YOU CERTIFY PARENT / HOLDING COMPANIES? As a general rule, NMSDC does not certify holding companies. Further, for the purposes of certification, NMSDC does not certify brands. The Council may certify such a subsidiary only if there is cumulatively fifty-one percent (51%) ownership of the subsidiary by minorities.
WHAT IS THE NMSDC? The National Minority Supplier Development Council (NMSDC) is one of the country’s leading business membership organizations that provides a direct link between corporate America and Minority-Owned Businesses. The NMSDC was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.
WHAT IS THE COST OF THE CRMSDC MBE CERTIFICATION? There is a NON-REFUNDABLE processing fee of $350.00 for the submission of the application. See Fees tab for the cost of the annual certification fee, which is based on annual sales.
WHAT QUALIFIES ME TO BECOME MBE CERTIFIED BY CRMSDC?
- A minimum of 51% of the company must be owned by an ethnic minority or group of minorities.
- Day-to-day operation and management control must be in the hands of the minority owner(s).
- The owner(s) must be a U.S. Citizen. Green card holders/resident aliens are not eligible for certification.
- The company headquarters must be located in the District of Columbia, Maryland, or Northern Virginia (down to Fredericksburg).
WHAT IS THE CERTIFICATION PROCESS? Applicants must complete the Pre-qualification and Certification application. Attend a Pre-Certification Briefing for details.
- All required data and documents must be uploaded to your online application and the initial application payment submitted.
- The Certification Specialist will thoroughly review the file. This “Desk Audit” is completed to ensure all required documents are received and meet the standards of the NMSDC.
- A site visit is conducted upon completion of the file “Desk Audit”.
- The complete application file will be presented to the Certification Committee on the fourth Thursday of the month.
- Newly approved MBEs will also be required to attend the New MBE Orientation to learn more about the Council, the benefits, programs and services and receive the certificate.
WHAT IS A SITE VISIT? A site visit is a physical tour and on-site interview with your company’s owner(s), conducted by the Council’s Certification Specialist, at the company’s physical address.
HOW LONG IS CERTIFICATION VALID? The certification is valid for one year and must be renewed each year.
HOW LONG WILL IT TAKE TO BECOME CERTIFIED? The certification process takes between 30 to 90 days to complete.
DO I NEED TO COMPLETE EVERY ITEM IN THE APPLICATION? Yes, all items applicable to your company must be completed on the application. Additionally, all required documents must be uploaded prior to submission of the application. If in doubt, contact the MBE Services.
WHAT ARE MBE SUBSCRIPTION SERVICES? The Minority Business Enterprise (MBE) Subscription is a select add-on that provides a multitude of value-added services for MBEs. The MBE Subscription Services was created upon recognizing the need to help businesses make an even greater impact in the marketplace. MBEs are not required to purchase the subscription. Please note that certification and recertification fees are not part of the subscription.
WHY MUST WE SUBMIT THE COMPANY’S FINANCIAL INFORMATION? Financial information is critical in validating a company’s business legitimacy. All information is kept confidential.
Who has access to my application?
The CRMSDC staff and the certification compliance committee has access to your application. Everyone who has access to the applicant’s information must sign a nondisclosure / confidentiality agreement yearly.
I AM A RESIDENT ALIEN / GREEN CARD HOLDER, AM I ELIGIBLE FOR MBE CERTIFICATION? No; the NMSDC guidelines require that an applicant must be a US citizen. Green card holders are not US citizens.
WHAT ARE NAICS CODES? Major corporations use NAICS codes and key word to identify business opportunities. If your NAICS code is not precise and concise, you will miss out on potential business opportunities. Please be smart about the selection of your code(s). Major corporations are not looking for a “jack-of-all-trades.” They are looking for functional experts. North American Industry Classification System (NAICS) is an industry classification system that groups’ establishments into industry sectors based on the activities in which they are primarily engaged. The NAICS code is a comprehensive system covering the entire field of economic activities, producing and non-producing. This system replaces the former Standard Industrial Classification (SIC) designations. Corporate America as well as some local, state, and federal government entities use NAICS codes. You are required to identify your businesses’ NAICS designation code. The NMSDC and corporate buying groups use NAICS codes to identify certified MBEs. Six digit NAICS codes are required.
What changes would affect my certification status?
- If a change occurs in your business, it is your responsibility to inform CRMSDC within thirty (30) days. The following is a list of common situations:
- Change in ownership, management, control, or operations
- Relocation of a business
- Change of products or services
If I become certified through CRMSDC, will I also be certified through the National MSDC?
Yes, the certification is a national certification that is recognized throughout the US. The National Minority Supplier Development Council is comprised of 23 Regional Councils like CRMSDC, 13,000 minority businesses, and over 1,400 Corporate Members, including most of America’s largest publicly-owned, privately-owned and foreign-owned companies, as well as universities, hospitals, and other buying institutions.
CERTIFICATION AGREEMENTS: While some government agencies may require a separate certification process, being certified with the CRMSDC can save time, reduce paperwork, and expedite approval for their supplier diversity program. Contact us about our certification agreements with:
WSSC, MONTGOMERY COUNTY, PRINCE GEORGES COUNTY, BALTIMORE COUNTY
MBE Recertification
The applicant fills out the application online and submits all required documentation. Filling out the application is easy and convenient. You can log out and come back later to complete the application.
The application and documentation are reviewed by the Certification Specialist who validates and ensures that all the necessary information is present to proceed with the certification.
The Board of Directors reviews the certification application and the recommendation of the Certification Committee and makes the final decision to approve or deny the MBE certification.
