State and Federal Certifications for Minority and Women-Owned Businesses

In Washington, state agencies, higher educational institutions, some local governments, and private companies look for businesses certified by the Washington State Office of Minority and Women’s Business Enterprises (OMWBE) to meet their diversity goals. The OMWBE offers state and federal certifications and reported that 3,144 businesses were certified at the end of 2022.

Certification aims to improve opportunities for certified businesses to get contracts for state-funded projects or partnerships with state agencies, local governments, schools, and public universities. These projects cover a broad range of needs, like construction, consulting, training, translation services, supplies, and more.
The State of Washington offers five types of certifications through the OMWBE:

• MBE – Minority Business Enterprise – owned by minority men
• WBE – Women’s Business Enterprise – owned by non-minority women
• MWBE – Minority Women’s Business Enterprise – owned by minority women
• CBE – Combination Business Enterprise – owned by non-minority women and minority men
• SEDBE – Socially and Economically Disadvantaged Business Enterprise – owned by non-minority men who are found to be socially and economically disadvantaged on a case-by-case basis

To qualify, a business must meet the following criteria and apply:

• Be for profit.
• Hold a valid business license in Washington State.
• Demonstrate capability to deliver core services necessary for contract fulfillment within the owner(s) area of expertise.
• Meet Small Business Administration (SBA) size standards, which are determined by either:
  o   An overall business size standard of $30.4 million in gross receipts averaged over three years.
  o   Size standards based on your business’s North American Industry Classification System (NAICS) codes, assigned by OMWBE.

The eligible owner(s) must:

• Be a minority or woman, including African American/Black, Hispanic/Latino, Asian American, Pacific Islander, Native Hawaiian, Alaska Native, or Native American. Others may be considered socially and economically disadvantaged on a case-by-case basis.
• Own at least 51% of the business and demonstrate the contribution of capital and expertise.
• Exercise control over managerial and day-to-day operations.
• Being economically disadvantaged is typically defined as having a personal net worth below $1.32 million, excluding primary residence and business assets. Additional guidelines may apply.
• Citizenship or permanent residency is not required for state certification.

The application process takes about 60 days, depending on the complexity and application completeness. Learn more on the OMWBE website.

The Washington State Department of Veteran Affairs provides certification for Veterans and Servicemembers.

• VBE – Veteran Owned Business Certification – owned by a Veteran or Servicemember

Learn from local certified business owners and leaders about their experiences, benefits, challenges, and opportunities with certification in our free guide.