What Is A Disadvantaged Business Enterprise (DBE)?

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A Disadvantaged Business Enterprise (DBE) certification is a designation provided by the U.S. Department of Transportation (USDOT) to eligible businesses that are socially and economically disadvantaged. The program is designed to promote equity and inclusion by ensuring that these businesses have access to federally funded transportation projects, such as highway, transit, and aviation projects.

Purpose of the DBE Program

The DBE certification aims to:

  • Level the playing field for disadvantaged businesses in federal transportation contracting.
  • Assist small businesses owned by socially and economically disadvantaged individuals in competing for federally funded contracts.
  • Foster job creation and economic growth within underrepresented communities.

Eligibility Criteria for DBE Certification

To qualify for Disadvantaged Business Enterprise (DBE) certification, a business must meet the following criteria:

Ownership

  • The business must be at least 51% owned and controlled by individuals who are socially and economically disadvantaged.
  • Socially disadvantaged groups are presumed to include:
    • White individuals who can demonstrate social disadvantage (e.g., due to discriminatory barriers unrelated to personal capacity).
    • Women of any race
    • Black Americans
    • Hispanic Americans
    • Native Americans
    • Asian-Pacific Americans
    • Subcontinent Asian Americans

Size Standards

  • The business must qualify as a small business as defined by the Small Business Administration (SBA), which sets revenue thresholds depending on the industry.
    • For most industries, the gross annual receipts generally cannot exceed $28.48 million (as of 2024).

Economic Disadvantage

  • Each disadvantaged owner must have a personal net worth of less than $1.32 million (excluding their ownership interest in the business and their primary residence).

Control

  • The disadvantaged owners must control the day-to-day operations and management of the business.

Independence

  • The business must be independent, meaning it cannot rely on another company for its primary operations.