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MINORITY BUSINESS Certification


NMSDC Growth Initiative
 - for a Minority Controlled Firm.

           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).

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