Print

Certification

 

The National Minority Supplier Development Council has standardized procedures to assure consistent and identical review and certification of minority-owned businesses. These businesses are certified by NMSDC's affiliate nearest to the company's headquarters. 

 

 

A minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members.

"Minority group members" are United States citizens who are Asian, Black, Hispanic and Native American.  

Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members.



Definition

For purposes of NMSDC's program, a minority group member is an individual who is a U.S. citizen with at least 1/4 or 25% minimum (documentation to support claim of 25% required from applicant) of the following:

Asian-Indian

A U.S. citizen whose origins are from India, Pakistan and Bangladesh.

Asian-Pacific

A U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.

Black

A U.S. citizen having origins in any of the Black racial groups of Africa.

Hispanic

A U.S. citizen of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America and the Caribbean Basin only.  Brazilians shall be listed under Hispanic designation  for review and certification purposes.

Native American

A person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental United States and proof can be provided through a Native American Blood Degree Certificate (i.e., tribal registry letter, tribal roll register number).

  Certification II — Minority Controlled Firm (NMSDC Growth Initiative)

           The NMSDC Growth Initiative affects only NMSDC-certified firms that have an opportunity to grow their businesses.

The business must be certified through an NMSDC affiliate (see above) first before it can apply for the Growth Initiative.

 A minority business may be certified as a minority "controlled" enterprise  if the minority owners own at least 30% of the economic equity* of the firm.  This occurs when non-minority institutional investors contribute a majority of the firm’s risk capital (equity).  Under this special circumstance, a business may be certified as a minority "controlled" firm if the following criteria are met:

A.        Minority management/owners control the day-to-day operations of the firm.

B.         Minority management/owners retain a majority (no less than 51%) of the firm’s “voting equity”.

C.        Minority owner/s operationally control the board of directors (i.e., must appoint a majority of the board of directors).

 RETURN