What is a D/M/WBE Certification?

Certification is a review process designed to ensure that a small business is actually owned, controlled, and operated by the applicants. Most certifications are granted for Minority or Women owned businesses, Small Disadvantaged Businesses, and Underutilized businesses. Certification agencies implement the processes for government and private sector entities and ensure that only firms that meet the eligibility criteria of the individual programs are properly certified.

There are many type of Certifications in the Dallas Fort Worth Metroplex.  The most recognizable certifications that will be discussed are the NCTRCA and Historically Underutilized Business (HUB) certifications.

The NCTRCA is recognized by certain business entities such as the City of Fort Worth, Fort Worth ISD, DFW Airport just to name a few.  To be an eligible MBE or WBE, a firm must be at least 51 percent owned, controlled and managed by individual(s) who are minorities and/or women.  In the case of a corporation, such individual (s) must own at least 51 percent of each class of voting stock outstanding and 51 percent of the aggregate of all stock outstanding.  In the case of a partnership, the minorities and/or women must own 51 percent of each class of partnership interest.  Such ownership must be reflected in the firm’s partnership agreement.  In the case of a LLC the minorities and/or women must own at least 51 percent of each class of member interest.

The NCTRCA certification process is approximately 90 days.

The (HUB) certification is recognized by business entities such as Tarrant County, UT Systems, State of Texas just to name a few.  A HUB is defined as a business formed for the purpose of making a profit in which at least 51 percent of the business is owned, operated, and controlled by one or more:

•Black Americans - includes all persons having origins of Black racial groups of Africa.

•Hispanic Americans - includes all person of Mexican, Puerto Rican, Cuban, Central or South America, or other Spanish/Portuguese culture or origin, regardless of race;

•Asian Pacific Americans - includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Territories of the Pacific, or the Northern Marianas; and Subcontinent Asian Americans which includes persons who origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal;

•Native Americans - includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; and

•American Women - includes women of any ethnicity, except those specified above;

who are economically disadvantaged and who have been historically underutilized because of their identification as members of these groups. Eligible entities must have their principal place of business and permanent business office located in Texas where the majority HUB owner(s) makes the decisions, controls the daily operations of the organization, and participates in the business. The qualifying owners must be residents of the State of Texas

The Texas Legislature requires all state agencies to make a good faith effort to assure that HUBs receive a portion of its contract dollars. During the state fiscal year, which starts on September 1st and ends on August 31st, DARS is expected to strive to meet the following HUB goals:

•11.9% -- Construction 

•26.1% -- Building Construction 

•57.2% -- Special Trades 

•20% -- Professional Services 

•33% -- Other Services 

•12.6% -- Commodities

In pursuit of these goals, DARS is committed to increasing opportunities for HUBs. Qualifying minority and women owned businesses are strongly encouraged to apply to be certified as a HUB through the Texas Comptroller of Public Accounts (CPA).

For your certification assistance, please call Frank Valtierra, Business Development Manager with the Fort Worth Hispanic Chamber of Commerce for an appointment at 817-625-5411.