What are the qualifications to be considered an M/WBE?

A minority business is defined as a business that is at least 51 percent owned by one or more minority persons or socially or economically disadvantaged persons. These persons must control the management and daily operations. A United States citizen or lawful permanent resident who is Black, Hispanic, Asian, American Indian, or female is considered a minority. A “socially and economically disadvantaged individual” is defined by reference to a federal statute (15 U.S. C. § 637). Socially disadvantaged individuals are “those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” Economically disadvantaged individuals “are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business who are not socially disadvantaged.” The federal law provides methods of determining economically disadvantaged status based on the individual’s assets and net worth. A socially and economically disadvantaged business is one that is 51 percent owned by one or more socially and economically disadvantaged individuals, an economically disadvantaged Indian tribe, or an economically disadvantaged Native Hawaiian organization.