What is a DBE

A Small or Disadvantaged Business can be women, minority, disabled or veteran-owned business. It is defined as being owned, capitalized, operated and controlled by a member of an identified group listed above. The business must be a for-profit enterprise which physically resides in the United States or one of it territories. For a definition of "Minority groups" please see the definitions as listed on the "Minority" page of this website.

DBE requirements are under the direct jurisdiction of the United States Department of Transportation (US DOT), which is why the process is uniform in every single state. The US DOT is responsible for setting DBE utilization goals and implementation of the program.

The SDB certification strictly pertains to benefits in federal procurement. Said another way, if you want to bid on Federal Contracts, you must be a SDB certified firm, which is different than being a member of the Small Business Administrations 8(a) program.

To qualify as a DBE or SDB, the business must be owned and controlled by one or more socially and economically disadvantaged persons as defined by DBE Regulation 49 CFR Parts 23 and 26. Businesses must show:

1. Minimum 51% ownership, control, and expertise of the individuals and
2. Control of the daily management and operations of the individuals