Minority Business Enterprise Certification Program

Minority Business Enterprise Certification Program

The purpose of the Minority Business Enterprise (MBE) Certification Program is to increase the opportunity for minority firms to sell their products and services to the State of Arkansas. This program is also designed to ensure that a minority business is actually owned, controlled and operated by the applicants, and meets the eligibility criteria of the program.

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Minority Business Enterprise Certification Program Rules and Regulations (Act 1456 of 2003 as amended)

I.  Introduction

Act 1456 of 2003 states, "The Division of Minority Business Enterprise of the Arkansas Economic Development Commission shall promulgate rules to create a certification process for minority business enterprises."

II.  Definitions

  1. "Minority Business Enterprise (MBE)" is an independent business entity, which is at least 51% owned by one or more minority persons.
  2. "Minority" means a lawful permanent resident of the State of Arkansas who is an African American, Hispanic American, American Indian, Asian American, or Pacific Islander American, or a Service-disabled veteran as designated by the United States Department of Veteran Affairs.
  3. "Minority Business Advisory Council" means the Advisory Council to the Division of Minority Enterprise created under Arkansas Code 15-4-303.
  4. "Director" is the Administrator of the Division of Minority Business Enterprise of the Arkansas Economic Development Commission.
  5. "Commission" means the Arkansas Economic Development Commission.         

III.  Eligible Applicants

Eligible applicants are registered Arkansas Businesses which can submit documentation (see Appendix) to the Arkansas Economic Development Commission's Division of Minority Business Enterprise to prove they are at least 51% owned by a minority or group of minorities, legally entitled to conduct business in the United States, and can demonstrate the capacity to conduct business with the State of Arkansas.

The firm must be owned by a lawful permanent resident or residents of the state of Arkansas and its annual revenue must not exceed $10,000,000.

Eligible minority firms, as defined herein, that are actively certified with the Arkansas-Mississippi Minority Supplier Development Council (AMMSDC), the Small Business Administration (SBA) 8(a) program, or the Arkansas Highway and Transportation Department (AHTD) Disadvantaged Business Enterprise (DBE) program are also eligible to apply for MBE certification from the State of Arkansas.

IV.  Certification Benefits

Certified MBEs will enjoy several benefits, such as:

  • Receive notification of opportunities to do business with state agencies
  • Receive notification of training events, workshops, networking events, and educational opportunities
  • Designation as a certified MBE (CMBE) in the Entrepreneur and Minority Business Division's online directory
  • Receive an official CMBE certificate
  • Simplified re-certification process

The State Procurement Director, state agency procurement agents, college and university procurement officials, constitutional offices and minority business officers will be notified of firms which have attained minority certifications. 

V.  Application Process

Interested applicants shall complete the required forms and send them to the Commission's Division of Minority Business Enterprise with copies of the required documents as listed in the Appendix.

The Commission shall review the documents, check the applicant's customer references, and may schedule a pre-certification interview/site visit with the applicant.

Vendor agreements, invoices, partnership agreements and articles of incorporation that relate to business with the State of Arkansas are subject to examination.

Eligible minority firms, as defined herein, that are actively certified with one of the following organizations may qualify for a streamlined application process by submitting the completed MBE application and proof of certification from the qualifying organization:

  • Arkansas-Mississippi Minority Supplier Development Council (AMMSDC)
  • Small Business Administration (SBA) 8(a) program
  • Arkansas Highway and Transportation Department (AHTD) Disadvantaged Business Enterprise (DBE) program

VI.  MBE Operations

Certified Minority Business Enterprises are subject to periodic reviews by the Commission.  It is mandatory to report any change in the status of the business affecting the ability to meet product demand, and/or any change in ownership, with a notarized Notice of Change Affidavit.

All business transactions, including billing and the remittance of such, must be conducted under the name appearing on the MBE certificate.

VII.  Annual Re-Certification

Certified MBEs shall send a Re-Certification Affidavit to the Division of Minority Business Enterprise thirty days prior to their current expiration date stating their desire to maintain certification.

The Affidavit shall state that the firm continues to be 51% minority owned, and must be signed by the firm's owner, executive officer and the chairman of its board of directors, if applicable.

The commission maintains the right to re-evaluate the applicant prior to renewal.

VIII.  Revocation

The Director of the Division of Minority Business Enterprise has the authority to suspend, and/or, under just cause, revoke the certification of any business which fails to comply with the intent of this program.

Any business with a revoked certification will be ineligible to re-apply to the program for a period of one year.

Prior to revocation of an MBE certification under this regulation, the MBE shall be afforded an opportunity to discuss with the Director the issues which have given rise to the revocation.

IX.  Moratorium

Given evidence of non-compliance with these regulations, the Director of the Division of Minority Business Enterprise has the authority to place a moratorium for one year on the new certification of any business sector for which two or more firms have received sanctions within any six month period.

X.  Appeals

  1. Any applicant who is denied their request for certification because they were unable to prove their minority status may appeal the decision to the Minority Business Advisory Council. A written notice of appeal must be received by the Commission no more than 30 days after the date of the notice of denial. The Minority Business Advisory Council shall meet to hear the appeal within 45 days of receipt of the written notice.
  2. Certified businesses may appeal a revocation action to the Minority Business Advisory Council. A written notice of appeal must be received by the Commission within30 days after the date on the notice of the revocation. The Minority Business Advisory Council shall meet to hear the appeal within 45 days of receipt of the written notice.

Appendix

List of Documents

  1. Completed MBE application form
  2. Copy of certification from qualifying organization*
  3. Copy of the Articles of Incorporation, or Fictitious Name Certificate
  4. Copy of bank signature authorization form or letter signed by a bank official identifying the person(s) authorized to sign checks on the business account
  5. Federal Tax Identification Number
  6. Copy of Birth Certificate/Passport/Green Card/Tribal Card
  7. Copy of resume of owner(s)
  8. Proof of state and federal income tax filing for previous three years, business or personal (Minimum of one year tax filing required for businesses operations)
  9. Copy of insurance**
  10. Bonding information**
  11. Copy of professional license**
  12. Partnership or Operating Agreement for businesses with two or more owners, evidencing division of shares and profit distribution
  13. Veterans Administration adjudication letter, if applicant is a service-disabled veteran

*Eligible minority businesses certified by a qualifying organization identified in Section V of these rules need only submit MBE application form along with proof of certification from the qualifying organization

**If required as a normal function of the business

CERTIFICATION FORMS

  • Notice of Change Affidavit
  • Re-certification Affidavit

APPLICATIONS 

OTHER CERTIFICATION

CERTIFICATION FAQ

What is Certification?

Certification is a review process designed to ensure that a minority business is actually owned, controlled, and operated by the applicants and meet the eligibility criteria of the program.

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What are the benefits of Certification? 

  • Receive notification of opportunities to do business with state agencies
  • Receive notification of training events, workshops, networking events and educational opportunities
  • Designation as a certified MBE (CMBE) in the Minority Business Division's online directory
  • Receive an official CMBE certificate
  • Simplified re-certification process

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What is a Minority Business Enterprise (MBE)?

A Minority Business Enterprise is a business at least 51 % owned by a minority or group of minorities, legally entitled to conduct business in the United States, and can demonstrate the capacity to conduct business with the State of Arkansas. The firm must be owned by a permanent resident or residents of the state of Arkansas and its annual revenue must not exceed $10 million. 

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What minority groups are recognized by the State of Arkansas for certification?

  • African American
  • Hispanic American
  • Native American Indian
  • Asian and Pacific Islander
  • Service-Disabled Veteran as designated by the United States Department of Veteran Affairs

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How is an owner's ethnic background determined?

  • Birth Certificate
  • Tribal Card
  • Green Card
  • Passport
  • Veterans Administration adjudication letter, if applicant is a service-disabled veteran

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What does the certification process entail?

Interested applicants shall complete the required forms and send them to the Minority Business Division of AEDC with copies of the required documents as listed below. The department shall review the documents, check the applicant's customer references, and may schedule a pre-certification interview/site visit with the applicant. Vendor agreements, invoices, partnership agreements and articles of incorporation that relate to business with the State of Arkansas are subject to examination.

List of Documents

  1. Completed MBE application  form
  2. Copy of certification from qualifying organization*
  3. Copy of the Articles of Incorporation, or Fictitious Name Certificate
  4. Copy of bank signature authorization form or letter signed by a bank official identifying the person(s) authorized to sign checks on the business account
  5. Copy of the Federal Tax Identification
  6. Copy of Birth Certificate/Passport/Green Card/Tribal Card
  7. Copy of resume of owner(s)
  8. Proof of state and federal income tax filing for previous three years, business or personal (Minimum of one year tax filing required for businesses operations)
  9. Copy of insurance**
  10. Bonding information**
  11. Copy of professional license**
  12. Partnership or Operating Agreement for businesses with two or more owners, evidencing division of shares and profit distribution
  13. Veterans Administration adjudication letter, if applicant is a service-disabled veteran

*Eligible minority businesses certified by a qualifying organization identified in Section V of these rules need only submit MBE application form along with proof of certification from the qualifying organization

**If required or accepted as a normal function of the business

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How long does it take to receive certification once a firm sends in the application?

If an applicant meets the requirements and provides the necessary documentation, processing takes approximately 20 to 30 business days. Incomplete applications and/or missing documents will result in delays.

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What does the re-certification process entail?

MBE firms are required to apply for recertification annually. If your company has not had an on-site review by this office within the last two years, you may be subject to a review. If your company is selected for an onsite review, you will be contacted shortly to make arrangements for the review. A recertification notice will be sent 30 days prior to the month in which the certification will expire.

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If I have registered online as a vendor with the Office of State Procurement, am I certified as a minority business enterprise?

Not necessarily. When registering online with the Office of State Procurement you have the option of becoming a certified minority business enterprise. Should you choose to become certified, you are required to submit supporting documentation to the Minority Business Division of the Arkansas Economic Development Commission for review.

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Must a business be certified as a minority business enterprise to do business with the State?

No, any business may register with the Office of State Procurement to do business with the state. However, if the vendor wishes to participate in the procurement process as a minority business enterprise, it must be certified by the Minority Business Division of the Arkansas Economic Development Commission.

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What is the difference between registration and MBE certification?

Registering your company with the Office of State Procurement as a vendor allows you to do business with the State of Arkansas. MBE certification indicates that your company has undergone a review process to show that it is 51 % or more owned, controlled and operated by a minority.

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How long does MBE Certification last?

MBE Certification is granted for a one year.

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Are state agencies required to do business with minority vendors?

No. However, state agencies are strongly encouraged to seek viable and growth-oriented minority businesses to participate in procurement opportunities.

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What procurement related state activities should I be aware of as a minority business enterprise owner?

There are a variety of conferences, workshops and expos that occur through the year. State-certified minority-owned businesses receive information on events.

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If I am certified by Arkansas Highway and Transportation Department as a DBE, am I also certified by the S&MB as a MBE to do business as a minority business enterprise with other state agencies?

No, the two certifications are separate and distinct. The Minority Business Division certifies minority enterprises on behalf of all of the state agencies, colleges and universities. The DBE certification must come from the Arkansas Highway and Transportation Department for minority businesses who seek to take advantage of Federal government contracts administered by the State of Arkansas.

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What happens after I become certified?

You will receive a certification letter and certificate.  Your business and name will be listed in our online directory.  The directory is used by anyone that is actively attempting to increase or engage in the utilization of MBEs that have been screened and are sanctioned by the State of Arkansas as MBEs.

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Is there a certification fee?

No. This is a service provided FREE by the state of Arkansas.

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Are non-profit organizations eligible to participate in the program?

The program is opened to "for-profit" companies only.

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For more information on the MBE Certification, please call 501-682-7782, 1-800-ARKANSAS or feel free to visit our website at www.arkansasedc.com.