Frequently Asked Questions

Q:        What is a MBE?

A:       MBE stands for Minority Businesses Enterprise. A MBE is a for-profit enterprise, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. "Minority group members" are defined as United States citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals. Further, those minority group members control the management and daily operations.

Q:        What are the criteria for certification?

A:       To qualify for an MBE certification, a business must be at least 51% owned, operated by a member of an American ethnic minority group. Minority status constitutes anyone of the following ethnic groups:

·         African-American

·         Asian-Indian American

·         Asian-Pacific American

·         Hispanic American

·         Native American

Q:        Are there more details in how the above ethnic groups are defined?

A:       Yes. Detailed information on each group is available on our Web site. Click on the following for those details: Certification.

Q:        What percentage of an ethnic group must I be to qualify as a minority?

A:       For purposes of NMSDC's program, a minority group member is an individual who is a U.S. Citizen with at least 1/4 or 25% minimum (documentation to support claim of 25% required from applicant) blood ethnic heritage from the following general minority groups: African-American, Hispanic-American, Native-American, and Americans of Asian, Asian-Indian or Asian-Pacific Islander descent. 

Q:        Does one have to be a U.S. Citizen to qualify for membership?

A:       Yes. An applicant must be a U.S. Citizen either by birth or naturalization. A permanent resident or green card holder does not qualify.

Q:        Why do I have to have a birth certificate for certification?

A:        A birth certificate proves citizenship and ethnic background.

Q:        Why should I become certified?

A.       In order for minority businesses to be affiliated with the Northwest Minority Business Council and have access to our corporate members and to be eligible for the many programs and services offered, it is necessary to complete the certification process. It is also the certification that corporate America accepts and requires. Once certified and part of the NMSDC Network, over two-thirds of minority business enterprises (MBEs) confirm business increases due to their partnership with the Council's corporate members. In 2004, the largest U.S. corporations purchased more than $80 billion in goods and services supplied by MBEs. Corporations prefer to do business with certified MBEs.

Q:        How long does it take to complete the certification process?

A:       The length of time depends upon the completeness of the application when it is submitted.  The application process includes an on-site visit and must be approved by NMBC board of directors, which meet on a monthly basis. The process can take up to 90 days. 

Q:        How long is the certification period?

A:       One year. At the beginning of each year the MBE must re-certify annually to be current and retain their minority certification.

Q:        Why should I become certified by the NMBC if my business is already certified by the State?

A.       State certifications are for pursuing and conducting business with various government entities: agencies, cities, counties, etc. The certification issued by the NMBC is for conducting business with the over 3500 corporate members of the National Minority Supplier Development Council (NMSDC). In order for minority businesses to be affiliated with the Northwest Minority Business Council and have access to our corporate members and to be eligible for the many programs and services offered, it is necessary to complete the certification process.  It is the certification that corporate America accepts and requires.  Once certified and part of the NMSDC Network, over two-thirds of minority business enterprises (MBEs) confirm business increases due to their partnership with the Council's corporate members.

Q:        Why should I certify with the State if I’m already certified with the NMBC?

A:       You should certify with all certifying bodies that you want to do business with and that offer an economic benefit. Government agencies with M/WBE programs usually have certification programs and will accept no other certification.

Q:        Will the state accept my NMBC certification?

A:       No, although the certification process and documentation is very similar, you must obtain certification from government certification entities and the NMBC independently. 

Q:        Will the NMBC accept my state certification?

A:       No, although the certification process and documentation is very similar, you must obtain certification from government certification entities and the NMBC independently. 

Q:        Can a Women Owned Business (WBE) be certified as 

                 minority owned by NMBC? 

A:       No, we certify ethnic owned companies based on their minority group. The NMBC’s definition of a minority owned business, as adopted from the National Minority Supplier Development Council, is a company that has at least 51 percent ownership by a person or persons belonging to a minority group.  Minority groups included in this definition are: African-American, Hispanic American, Native American, Asian/Pacific American, and Asian-Indian American. For those women-owned businesses that do not meet our criteria, contact The Women’s Business Enterprise at http://www.wbenc.org/

Q:        What is the fee for certification?

A:       Fees for certification are based on gross annual sales as follows:

·         Initial Application Certification Fee:                

          $150 - Class I    (Sales under $1 Million)

          $250 - Class II   (Sales over $1 Million and under $10 Million)

          $350 - Class III  (Sales over $10 Million and under $50 Million)

          $450 - Class IV   (Sales over $50 Million) 

·         Annual Re-certification Fee:

          $150 - Class I    (Sales under $1 Million)

          $250 - Class II   (Sales over $1 Million and under $10 Million)

          $350 - Class III  (Sales over $10 Million and under $50 Million)

          $450 - Class IV   (Sales over $50 Million) 

·         Reciprocal Certification Fee:

          $150 - Class I    (Sales under $1 Million)

          $250 - Class II   (Sales over $1 Million and under $10 Million)

          $350 - Class III  (Sales over $10 Million and under $50 Million)

          $450 - Class IV   (Sales over $50 Million) 

Q:        What is a reciprocal certification?

A:       A reciprocal certification is a certification that indicates that the minority firm has been certified by another NMSDC  regional council office where the business is headquartered.  The reciprocal certification allows the minority firm to access all programs and services that are available from the local council where it seeks reciprocal certification status.

Q:        Does the NMBC offer business loans for MBEs?

A:       The NMBC offers a number of business loans and financial services, through the NMSDC Business Consortium Fund. Financial Applicants must be NMBC certified MBEs to qualify.  For further information click here:  BCF

Q:        Does the Council provide bids or contracts for certified MBEs?

A:       No. The council provides corporate buyers and contracting agencies information about your business through our supplier directory, on-line database and fax referrals. They in turn contact individual businesses in regard to contracting and bid opportunities. We also assist Corporate America in enhancing and developing their supplier diversity programs.

Q.        What are NAICS codes?

A:        North American Industry Classification System (NAICS) is an industry classification system that groups' establishments into industry sectors based on the activities in which they are primarily engaged. The NAICS is a comprehensive system covering the entire field of economic activities, producing and non-producing. This system replaces the former Standard Industrial Classification (SIC) designations. Corporate America and local, state, and federal government entities use NAICS codes. You are required to identify your businesses' NAICS designation code.

Q:      Where may I locate my business NAICS code?

A:        You may locate the NAICS code at your local public library or on the Internet. The Website address is www.naics.com.

Q:        How can I maximize my certification with the Council?

A:       There are several ways to take full advantage of being part of NMBC. The following are some suggestions:

·         Become an active participant in NMBC committees. Committee structures exist to assist NMBC in the execution of its annual operations and provide members with a direct opportunity to network with other MBE, government and corporate affiliates.

·         If you are a MBE, target specific corporation(s) you would like to do business with. Research the company's business and develop a strategic approach for conducting business. Every corporation is currently buying from someone, so knowing who your competitors are is crucial.

·         Participate in educational seminars offered by the Council, including monthly networking meetings, national conferences and all other NMBC/NMSDC networking functions.

·         Provide the Council with feedback on your networking success stories.

·      Update our offices on any changes regarding the operation of your business. Referrals are driven by the information contained in our database. Notify us of any challenges you encounter.