DBE Certification
In general, to be eligible for the DBE program, persons must own 51% or more of a “small business,” establish that they are socially and economically disadvantaged within the meaning of DOT regulations, and prove they control their business. 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 (in general):
- Ownership– Your business must be 51% owned by a socially and economically disadvantaged individual(s).
- Socially Disadvantaged– You may be eligible if you are a member of a group of persons the Department considers as disadvantaged. 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. The Department notes, for example, that people with disabilities have disproportionately low incomes and high rates of unemployment, and that many may be socially and economically disadvantaged. A determination of whether an individual with a disability meets DBE eligibility criteria is made on a case-by-case basis. More information on how social and economic disadvantage is determined can be found in Appendix E to 49 CFR Part 26.
- 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 over $23.98 million in the previous five fiscal years ($56.42 million for airport concessionaires in general with some exceptions). Under MAP-21, this threshold will be adjusted annually for inflation by the Secretary.
- Personal Net Worth– Only disadvantaged persons having a personal net worth of less than $1.32 million can be considered as a potential qualified DBE. Items excluded from a person’s net worth calculation include an individual’s ownership interest in the applicant firm, and his or her equity in their primary residence.
Additional program requirements and certification procedures are found in the Department’s regulations 49 C.F.R. Parts 23 and 26. Specific information can also be found in the Civil Rights Laws section below or within the Department of Transportation’s Office of Small and Disadvantaged Business Utilization.
Step 1. Complete the Uniform Certification Application
Step 2. Complete and notarize the Personal Net Worth Statement
Step 3. Gather all relevant supporting documents listed on the Uniform Certification Application Supporting Document Checklist
Step 4. Mail completed and notarized application, along with all required and relevant documentation to:
Department of Transportation
DBE Program
700 E Broadway Ave
Pierre SD 57501
*Relevant supporting documents can be submitted on a flash drive. It must be accompanied with the Original Uniform Certification Application and notarized Affidavit of Certification and Personal Net Worth Statement
Step 5. An onsite review of your home office will be conducted either in-person or via web conference. The review will consist of an interview with the principal officer to discuss information in the application and company operations.
Step 6. You will be notified in writing of the results of the application and onsite review to determine if your firm meets eligibility standards. If you are approved, you will be responsible for submitting an annual renewal affidavit by the anniversary date of your certification. If you are denied, the letter will explain the reasons for your denial and your right to appeal the decision.
Step 1. You must first be certified in your home state prior to applying for Interstate Certification
Step 2. A complete copy of your home state application and all supporting documentation must be submitted for review.
This includes:
- The original Uniform Certification Application submitted to your home state
- Original and any updated Notarized Personal Net Worth Statements
- All relevant documents submitted from the Uniform Certification Application Supporting Document Checklist
- Any No Change Affidavits and business taxes or supporting documents you submitted to your home state since initial certification
- Any notices of change or additional information you submitted to your home state since your initial certification
- If you appealed a certification or were decertified, copies of all communications as it pertains.
Step 3. Complete and notarize the South Dakota UCP Interstate Certification Affidavit
Step 4. Mail completed and notarized affidavit, along with all applicable information to:
Department of Transportation
DBE Program
700 E Broadway Ave
Pierre SD 57501
*All home state submitted documents can be submitted on a flash drive. It must be accompanied with the original notarized SD UCP Interstate Certification Affidavit
Step 5. Within seven (7) days of receipt of all applicable information as stated above, SDDOT will request a copy of the most recent onsite report from your home state
Step 6. If your firm is determined to be certifiable, you will be sent a letter of certification and placed on the DBE directory within 60 days of the date all required information was received. If you are approved, you will be responsible for submitting an annual renewal affidavit by the anniversary date of your certification. If you are denied, the letter will explain the reasons for your denial and your right to appeal the decision.
