Many people are talking about Minority and Women Owned Business Enterprise (MWBE) certification. What does it mean for your business? It can be a great way to open up many new business opportunities within your industry. No, you will not automatically win grants by having this certification and no, it does not ensure you will […]
Many people are talking about Minority and Women Owned Business Enterprise (MWBE) certification. What does it mean for your business?
It can be a great way to open up many new business opportunities within your industry. No, you will not automatically win grants by having this certification and no, it does not ensure you will get a bid on a job you are seeking. However, certification will give you an edge over a business that is not certified in winning contracts from the government.
The benefit of becoming a certified MWBE business is that it puts you on a New York State (NYS) directory of certified minority and women-owned business enterprises list. This enables the state agencies and authorities, prime contractors, vendors, municipalities, subcontractors, and the private sector to look at companies that are certified to help to meet the NYS requirement of 30 percent of the project being performed by minority or women-owned businesses. As a certified MWBE, your company will have access to a variety of loan and bonding programs as well as programs that provide technical assistance.
Who qualifies as an MWBE company? To be certified as a minority or women-owned business, you must be an independently owned and operated business authorized to do business in NYS that is at least 51 percent owned and controlled by a minority member or a woman. That means the principal owner, whether minority or woman, must have knowledge of the day-to-day practices of the business and have a vested interest. The days of the wife taking over ownership on paper, but not really knowing the day-to-day business are over.
Now, let’s get down to business. What do you need to do in order to obtain the certification? You will need to fill out an online application by visiting the Empire State Development website at www. esd.ny.gov.
When you apply for the certification, you will need certain documentation. That includes the following, according to the MWBE Certification Planning Guide produced by the New York Small Business Development Center:
1.Résumés of all principals, partners, officers, and/or key employees of the firm
2. Bank signature card, bank resolution, or letter from the bank identifying persons authorized to conduct transactions on behalf of firm and level of authority and limitations, if any
3. Notarized personal financial statement for each minority or woman upon whom certification is based along with appropriate supporting documentation
4. Year-end balance sheets and income statements for the past three years (or life of firm, if less than three years); a new business must provide a current balance sheet
5. Firm’s tax returns for the past three years and all related statements, schedules, and amendments
6. Personal tax returns for the past two years for each minority or woman upon whom certification is based, including all schedules, W2s, statements, and amendments
7. Descriptions of all real estate owned/leased (including office/storage spaces, etc.) and documented proof of ownership/signed leases
8. Documented proof of contributions used to acquire ownership for each owner (i.e., both sides of cancelled checks)
9. Schedule of salaries paid to all officers, managers, owners, and/or directors (or other compensation or remuneration)
10. Proof of U.S. citizenship or permanent resident alien status and ethnicity (if applicable)
11. Appropriate proof of company formation, registration, publication, and/or assumed name (depends on type of company formed; please see actual application for details)
If applicable:
12. Operating agreement and any amendments
13. Proof of gender
14. Proof of minority status
15. Copy of the New York State Vendor Tax Registration
16. Proof of business activity in the form of a signed contracted or purchase order
17. Copies of all licenses, permits, certifications, and/or accreditations utilized by this firm to conduct business, including those held by individuals
18. Any certification, decertification, or denial-of-certification documentation
Note: This is only a sample listing. A more complete checklist can be found online at www.ny.gov/services/apply-mwbe-certification-new-york-state
Out-of-state businesses also might want to apply for the NYS MWBE certification. They must be certified in their home state first before applying to NYS.
Of course there are some online application tips to keep in mind.
1. You must answer all the questions and complete each section. If a section is not applicable, you must say that — do not leave it blank
2. Click “save & return” constantly
3. After uploading a document, be sure to select “Lock In” to ensure that it is saved
4. Print a hard copy of entries
5. Complete the electronic signature required to submit the application
6. Each section offers a self-help option — take advantage of that.
This certification is a great way to help you gain an edge in doing contract work with the government. However, don’t forget just because you are placed on a list, it doesn’t mean you will automatically have job opportunities flooding your gates. You still have to market yourself, network in the right circles, and have a good reputation in your field as well. The hard work will pay off in the end and you will be glad you became certified as an MWBE.
Melissa Zomro, a former small-business owner in the equine industry, is a New York State-certified business advisor at the Small Business Development Center at Onondaga Community College. Contact her at m.l.zomro@sunyocc.edu or call (315) 498-6066.