The purpose of this guide is to provide a quick at-a-glance list of the requirements for SBE Certification. Please note that this is an unofficial source, and only a Washington State Office of Minority & Women’s Business Enterprise (OMWBE) analyst can make eligibility determinations. For official eligibility requirements, visit https://omwbe.wa.gov/certification/federal-certification. Businesses located outside of Washington State must first seek certification by their home state before applying in Washington.
About SBE: Some federally funded transportation projects in Washington State include a goal for the prime or the agency to purchase from a “Small Business Enterprise” or SBE. This is a certification through the OMWBE. Once your firm applies, it can take 90 days to complete its review by a certification analyst. During the application process, OMWBE will ensure your firm and its controlling owner meet ALL of the following requirements related to the size of your business and personal net worth of the owner:
- The firm is for-profit
- The firm does not exceed the small business size standard according to the firm’s North American Industry Classification System (NAICS) codes as determined by OMWBE. See the Size Standard Requirements at sba.gov/size or link to the Table here: https://www.sba.gov/document/support-table-size-standards
- The firm does not exceed $30.4 million in gross receipts over a three-year average
- The owner must own at least 51% of the business and show contribution of capital and expertise
- The Owner must control the managerial and day-to-day operations
- The Owner must be a US Citizen or permanent US Resident
- The Owner must be “economically disadvantaged” which is generally defined as having a personal net worth of less than $1.32 million, not including a person’s primary residence or applicant business. Note: there are circumstances where an applicant’s personal net worth does not exceed $1.32 million, but OMWBE determines the person is not economically disadvantaged. The agency would make this determination if the statement of personal net worth and supporting documents demonstrate the individual is able to accumulate substantial wealth. Factors include:
- Adjusted gross income over the last three years is over $350,000. The agency takes into consideration if this income was usual and likely to occur in the future, if the earnings were offset by losses, and if the income was reinvested in the firm or used to pay business taxes
- The total fair market value of the owner’s assets exceeds $6 million, including the applicant business and the owner’s primary residence
- Other evidence that income is not indicative of lack of economic disadvantage
Questions? Washington PTAC, an APEX Accelerator, provides no-cost advising on how to apply for certifications. Find your local advisor at www.washingtonptac.org or www.aptac-us.org. You can also email us at info@washingtonptac.org
[Document Updated: 6.9.23]
