MBDA Virginia Business Center Brief 2023

USEFUL GOVERNMENT CONTRACTING WEBSITES

• Federal Acquisition Regulation (FAR)
• Federal Business Opportunities (FedBizOpps)
• Federal Grants Resources
• Federal OSDBU Directors Interagency Council
• Federal Procurement Data Systems (FPDS)
• General Services Administration Schedules
• Native Procurement Technical Assistance Centers (Native PTAC)
• North American Industry Classification System (NAICS)
• Procurement Technical Assistance Centers (PTAC)
• Small Business Administration (SBA)
• SBA Office of Advocacy
• Small Business Development Centers (SBDC)
• System for Award Management (SAM)
• USA.gov
• USAspending.gov

The VABBD is a reciprocal partner of the Fauquier Chamber located in Fredericksburg. For more information, click here. 

13 Funding Options for Black-Owned Businesses

Helping minority-owned businesses

Black Girl Ventures was founded to support Black and Brown woman-identifying founders with access to a community, capital, and training. BGV hosts a Shark Tank-style pitch competition each year open exclusively to Black/Brown women founders, which has funded over 260 women of color. The organization also offers fellowships, digital communities, and an accelerator program for students at HBCUs.

The Advancing Black Pathways initiative from JP Morgan Chases offers capital, technical support, and pathways for Black businesses.

The Los Angeles-based Black Business Association (BBA), which was founded in 1970, advocates for policies to “improve access to contracting and procurement opportunities” in both the public and private sectors. This non-profit has offered networking, training, and more to its members over the years.

The organization Black Founders, established in 2011, aims to “empower entrepreneurs and provide founders with access to advice, mentorship, and funding.” Black Founders differentiates itself from other organizations with its emphasis on technology entrepreneurship, as Black entrepreneurs have historically been underrepresented in the VC-backed tech startup landscape.

Black Owned Everything takes a more modern approach to the idea of Black-owned business directories by curating photos and products from Black-owned businesses via a popular Instagram account.

Coalition to Back Black Businesses — spearheaded by American Express, the U.S. Chamber of Commerce Foundation, the National Black Chamber of Commerce, National Business League, U.S. Black Chambers, and Walker’s Legacy — aims to provide $10 million in grants, training, and resources to Black-owned businesses through 2023.

The National Minority Supplier Development Council (NMSDC), the most important certification organization for minority-owned businesses, helps connect Black-owned businesses with more opportunities and partnerships.

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Governments and corporations around the United States often set aside a percentage of their contract budgets exclusively for minority-owned businesses. These entities want to ensure they are doing their part to buy from a broad set of suppliers that better represent all communities.

However, if a business wants its operation to be formally recognized as a minority-owned business or enterprise, it should seek to get an official certification. This shows first that the business is credibly established and second that it is ready to work with large public and private entities.

Read below to learn about how to get certified as a minority-owned business and how this certification can help a business get more contracts from large companies and governments.

When it comes to getting certified, businesses first need to know more about the National Minority Supplier Development Council (NMSDC), the largest and most prominent certification body for minority-owned businesses. The organization says it has an “unwavering commitment to advance Asian, Black, Hispanic, and Native American suppliers in a globalized corporate supply chain.”

The NMSDC has a network of 12,000 certified minority-owned businesses that can then be connected to more than 1,400 large corporate members. NMSDC certification also holds a lot of weight in government circles, with many states and cities accepting NMSDC certification to help with public-sector contract selection.

Corporate membership of NMSDC includes many of the largest privately owned companies in the world, including Accenture, Apple, Bank of America, Delta Airlines, Facebook, Google, GM, Microsoft, Nike, Raytheon, UnitedHealth Group, Walmart and Walt Disney Company. These member companies use the NMSDC directly of minority-owned businesses to research companies and award contracts.

HOW TO RECEIVE NMSDC CERTIFICATION

For businesses seeking NMSDC certification, the organization offers a relatively easy process to apply. They will go through the following steps:

• Review the certification criteria to make sure the business qualifies. These criteria include that business owners must be U.S. citizens, the business must be located in the U.S., and the business must be at least 51% minority-owned operated and controlled.
• Gather required documentation including certificate of incorporation, articles of incorporation, stock certificates, stock ledger, bylaws (executed and attested), and amendments (if applicable).
• Complete the online application, which must be completed on the website of the regional NMSDC affiliate closest to your business headquarters. Find the closest regional affiliate here.
• Pay the application fee, which must be paid online via credit card.
• Upload all required documentation needed to finish the application.
• Schedule a site visit and interview, which will be performed by an NMSDC Certification Specialist.

The NMSDC certification process can take up to 90 days to complete. Once a business has sent in all application materials, it will be reviewed by the NMSDC Certification Committee. If the Committee approves the application, it will be submitted to the NMSDC Board for final approval. If the Board rejects the application, a business can submit a letter appealing the ruling that addresses concerns. If it approves the application, you will receive a notice via email..

FEDERAL AND LOCAL CERTIFICATIONS

On top of the NMSDC certification, a minority-owned business may also seek out certification from other entities, such as the Small Business Administration (SBA) or individual cities and states in which they are located.

Specifically, the SBA offers a certification called 8(a). Businesses with 8(a) certification are eligible to win federal contracts that are reserved for “small disadvantaged businesses.” The federal government has a goal of awarding at least five percent of contracting dollars for business with 8(a) designation. While 8(a) businesses do not necessarily need to be minority-owned businesses, all companies with 51% minority ownership are likely eligible according to federal regulations.

When it comes to states, Ohio is an example of one that has its own Minority Business Enterprise (MBE) certification process. Once certified in Ohio, minority-owned businesses can win contracts from state agencies, boards and commissions. The state has a goal of awarding 15% of contracts to MBEs. Many other states have these types of certifications as well.

Finally, when it comes to city-level certification, Chicago is a prime example. Chicago has its own Minority and Women-Owned Business (M/WBE) Certification Program. Approved certifications are valid for five years and businesses that are approved have access to bid on large city contracts. Other cities such as Austin, Houston, Indianapolis, Memphis, and New York City offer similar certification programs.