ByBlack
Certification
What programs are available for small and/or minority businesses?
What are the requirements
for the HUB, DBE and SBA programs?
HUB
Historically Underutilized
Businesses
HUB must be a corporation, sole proprietorship, partnership, or joint venture in which at least 51% of the business is owned, operated, and actively controlled/managed by a minority or woman. The business is an entity with its principal place of business in Texas, and has an owner residing in Texas with a proportionate interest that actively participates in the control, operations and management of the entity’s affairs.
Disadvantaged Business
Enterprises (DBE)
DBE are defined as small for-profit businesses where socially and economically disadvantaged individuals own at least a 51% interest of the business and also control the management and daily business operations. To participate in the DBE program, a small business owned and controlled by socially and economically disadvantaged individuals must receive DBE certification from the relevant state.
Small Business Administration
(SBA)
SBA has several programs designed to assist small and economically disadvantaged businesses compete in the marketplace. These programs include, but are not limited to the 8(a) Business Development Program and the Women-Owned Small Business Federal Contract Program. SBA defines a “small business” in terms of the number of employees over the past year, or average annual receipts over the past three years. Size standards vary by industry. The Federal government sets aside certain contract bid opportunities exclusively for small businesses. In order to compete for these contracts, small businesses owners must first register as a vendor with the government.
What are the requirement for the HUB, DBE and SBA programs?
What individuals classify as socially
and economically disadvantaged?
As defined by the State of Texas, “socially and economically disadvantaged” individuals or groups include African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans, and women. Other individuals can also qualify as socially and economically disadvantaged on a case-by-case basis.
What businesses classify as being socially
and economically disadvantaged?
To be considered for this program, the owner or at least one of the owners must classify as socially and economically disadvantaged, own at least a 51% interest of the business and also control the management and daily business operations. The State of Texas classifies such businesses as:
- Woman-Owned, Female
- Hispanic-Owned, Female
- Black-Owned, Female
- Asian-Owned, Female
- American Indian-Owned, Female
- Hispanic-Owned, Male
- Black-Owned, Male
- Asian-Owned, Male
- American Indian-Owned, Male
