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Eligibility

A Disadvantaged Business Enterprise or DBE is a for-profit small business concern engaged in business activities—(1) That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged; and (2) Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. 

The Infrastructure, Investment, and Jobs Act requires the Department to establish minimum uniform criteria for use by State government agencies in certifying whether a concern qualifies as a small business concern. Applicants carry the initial burden of proof regarding their eligibility and must demonstrate that they meet all certification requirements, including social and economic disadvantage status. Certification agencies follow the requirements found in 49 CFR Part 26 to certify or deny firm DBE status.  

The following general guidelines, taken in part from the applicable regulation (49 C.F.R. Part 26), will help business owners determine whether they are eligible for the DBE program: 

Eligibility Guidelines (Overview): 

Business Size Determination- A firm (including its affiliates) must be a small business as defined by SBA standards. It must not have annual gross receipts in excess of the DBE/ACDBE size limits. 

Ownership- Your business must be 51% owned by a socially and economically disadvantaged individual(s). 

"Disadvantaged"-. Pursuant to the Infrastructure, Investment, and Jobs Act the Department presumes certain groups are disadvantaged, including women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Pacific Americans, or other minorities found to be disadvantaged by the U.S. Small Business Administration (SBA). 

Persons who are not members of one of the above groups and own and control their business may also be eligible if they establish their "social" and "economic" disadvantage. 

Personal Net Worth-  The owner(s) of the business must have a personal net worth that is below the applicable limit, which is adjusted every 3 years.   

Control- One or more disadvantaged owner(s) seeking certification control the firm.  

Additional program requirements and certification procedures are found in the Department's regulations 49 C.F.R. Parts 23 and 26. 

Last updated: Thursday, January 23, 2025