Small and Minority Business

Certification FAQ

What is Certification?

 

What is Certification?

Certification is a review process designed to ensure that a minority business is actually owned, controlled, and operated by the applicants and meet the eligibility criteria of the program.

Back To Top

 

What are the benefits of Certification? 

  • Receive notification of opportunities to do business with state agencies
  • Receive notification of training events, workshops, networking events, and educational opportunities
  • Designation as a certified MBE (CMBE) in the Small and Minority Business Division's online directory
  • Receive an official CMBE certificate, and
  • Simplified re-certification process

Back To Top

 

What is a Minority Business Enterprise (MBE)?

A Minority Business Enterprise is a business at least 51 percent owned by a minority or group of minorities, legally entitled to conduct business in the United States, and can demonstrate the capacity to conduct business with the State of Arkansas. The firm must be owned by a permanent resident or residents of the state of Arkansas and its annual revenue must not exceed $10 million. 

Back To Top

 

What minority groups are recognized by the State of Arkansas for certification?

  • African American
  • Hispanic American
  • Native American Indian
  • Asian and Pacific Islander
  • Service-Disabled Veteran as designated by the United States Department of Veteran Affairs

Back To Top

 

How is an owner's ethnic background determined?

  • Birth Certificate
  • Tribal Card
  • Green Card
  • Passport
  • Veterans Administration adjudication letter, if applicant is a service-disabled veteran

Back To Top

 

What does the certification process entail?

Interested applicants shall complete the required forms and send them to the Small and Minority Business Division of AEDC with copies of the required documents as listed below. The department shall review the documents, check the applicant's customer references, and may schedule a pre-certification interview/site visit with the applicant. Vendor agreements, invoices, partnership agreements, and articles of incorporation that relate to business with the State of Arkansas are subject to examination.

List of Documents

  1. Completed MBE application  form
  2. Copy of certification from qualifying organization*
  3. Copy of the Articles of Incorporation, or Fictitious Name Certificate
  4. Copy of bank signature authorization form or letter signed by a bank official identifying the person(s) authorized to sign checks on the business account
  5. Copy of the Federal Tax Identification
  6. Copy of Birth Certificate/Passport/Green Card/Tribal Card
  7. Copy of resume of owner(s)
  8. Proof of state and federal income tax filing for previous three (3) years, business or personal (Minimum of one (1) year tax filing required for businesses operations)
  9. Copy of insurance**
  10. Bonding information**
  11. Copy of professional license**
  12. Partnership or Operating Agreement for businesses with two (2) or more owners, evidencing division of shares and profit distribution
  13. Veterans Administration adjudication letter, if applicant is a service-disabled veteran

* Eligible minority businesses certified by a qualifying organization identified in Section V of these rules need only submit MBE application form along with proof of certification from the qualifying organization

**If required or accepted as a normal function of the business

Back To Top

 

How long does it take to receive certification once a firm sends in the application?

If an applicant meets the requirements and provides the necessary documentation, processing takes approximately 20 to 30 business days. Incomplete applications and/or missing documents will result in delays.

Back To Top

 

What does the re-certification process entail?

MBE firms are required to apply for recertification annually. If your company has not had an on-site review by this office within the last two years, you may be subject to a review. If your company is selected for an onsite review, you will be contacted shortly to make arrangements for the review. A recertification notice will be sent thirty (30) days prior to the month in which the certification will expire.

Back To Top

 

If I have registered online as a vendor with the Office of State Procurement, am I certified as a minority business enterprise?

Not necessarily. When registering online with the Office of State Procurement you have the option of becoming a certified minority business enterprise. Should you choose to become certified, you are required to submit supporting documentation  to the Small and Minority Business (SMB) Division of the Arkansas Economic Development Commission for review.

Back To Top

 

Must a business be certified as a minority business enterprise to do business with the State?

No, any business may register with the Office of State Procurement to do business with the state. However, if the vendor wishes to participate in the procurement process as a minority business enterprise, it must be certified by the Small and Minority Business Division of the Arkansas Economic Development Commission.

Back To Top

 

What is the difference between registration and MBE certification?

Registering your company with the Office of State Procurement as a vendor allows you to do business with the State of Arkansas. MBE certification indicates that your company has undergone a review process to show that it is 51 percent or more owned, controlled and operated by a minority.

Back To Top

 

How long does MBE Certification last?

MBE Certification is granted for a one year.

Back To Top

 

Are state agencies required to do business with minority vendors?

No. However, state agencies are strongly encouraged to seek viable and growth-oriented minority businesses to participate in procurement opportunities.

Back To Top

 

What procurement related state activities should I be aware of as a minority business enterprise owner?

There are a variety of conferences, workshops and expos that occur through the year. State-certified minority-owned businesses receive information on events.

Back To Top

 

If I am certified by Arkansas Highway and Transportation Department as a DBE, am I also certified by the S&MB as a MBE to do business as a minority business enterprise with other state agencies?

No, the two certifications are separate and distinct. The Small and Minority Business Division certifies minority enterprises on behalf of all of the state agencies, colleges and universities. The DBE certification must come from the Arkansas Highway and Transportation Department for minority businesses who seek to take advantage of Federal government contracts administered by the State of Arkansas.

Back To Top

 

What happens after I become certified?

You will receive a certification letter and certificate.  Your business and name will be listed in our online directory.  The directory is used by anyone that is actively attempting to increase or engage in the utilization of MBEs that have been screened and are sanctioned by the State of Arkansas as MBEs.

Back To Top

 

Is there a certification fee?

No. This is a service provided FREE by the state of Arkansas.

Back To Top

 

Are non-profit organizations eligible to participate in the program?

The program is opened to "for-profit" companies only.

Back To Top

 

For more information on the MBE Certification, please call 501-682-7782,

1-800-ARKANSAS or feel free to visit our website at www.arkansasedc.com

Back To Top