What are the criteria for SBE certification?
Eligibility requirements for verification as a SBE are stated in 49 CFR Part
The following six requirements must be proved by a SBE applicant, but they
do not cover all the requirements found in 49 CFR Part 26.39.
A disadvantaged owner must be a
U.S. Citizen (or legal resident) and meet the federal definition of economically
disadvantaged as defined in 49 CFR Part 26.67 or any individual found to be economically
disadvantaged on a case-by-case basis.
Personal Net Worth:
Only disadvantaged persons having a
personal net worth (PNW) of less than $1,320,000 can be considered for SBE verification.
Items excluded from a person's net worth calculations include an individual's
ownership interest in the applicant firm and his or her equity in their primary
Business Size Standard:
A firm (including affiliates)
must be a small business as defined by the Small Business Administration (SBA).
It must not have annual gross receipts over $23,980,000 in the previous three
years. Depending on the type of work the business performs, other size standards
Must be a for-profit small business concern
whose economically disadvantaged individuals own at least 51% interest, control
management AND daily business operations.
The business must not be affiliated with
another firm in such a way as to compromise its independence and control. These
include, but are not limited to, such areas as personnel, facilities, equipment,
financial and/or bonding support, and other resources.
Management and Control:
The economically disadvantaged
owner(s) must possess the power to direct or cause the direction of the management
and polices of the firm and to make day-to-day decisions, as well as long-term
decisions on matters of management, policy and operation
If you have questions regarding your the SBE Program, please contact the DBE
Department at (847) 228-4257 email us at