XL EagleMBE (Minority Business Enterprise)
MBE stands for Minority Business Enterprise. A Minority Business Enterprise is a business that is majority owned and controlled by members of groups defined as minorities under a certifying program. States, cities, counties, and transit agencies run MBE certification programs, and each sets its own eligibility rules and paperwork.
Many public contracts include MBE participation goals, meaning the prime contractor is expected to subcontract a share of the work to certified MBEs or show good-faith efforts to do so. Certification from one agency is not always accepted by another.
Why it matters to a small contractor
If your firm qualifies, MBE certification can put you on prime contractors' call lists, because primes need certified subs to meet goals. Certify with the agencies where you actually want to work, and keep your certification current.
Example
A minority-owned trucking company gets certified as an MBE with its city. When a large paving contractor bids a city street project with an MBE goal, it calls the trucking company to haul asphalt.
MBE: common questions
Is MBE the same as DBE?
No. DBE is a federal Department of Transportation program with its own rules. MBE programs are run by states and localities. Some agencies certify both together.
Does an MBE certification from one state work in another?
Usually not automatically. Some states have reciprocity agreements, but you often have to apply separately.
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