Definitions

Updated:Mar 7,2011

Minority/Woman-Owned Business Enterprise (also known as, Disadvantaged Business Enterprise (DBE) - An independent small business enterprise: (a) which is at least 51 percent owned, as defined herein, by one or more socially and economically disadvantaged individual(s), or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged individual(s); and (b) whose management and daily business operations are controlled, as defined herein, by one or more of the socially and economically disadvantaged individual(s) who own it.

The socially and economically disadvantaged individual(s) shall collectively own, operate and share in payments from such an enterprise in the manner hereinafter set forth:

  1. Owned
    1. For a sole proprietorship to be deemed a disadvantaged business enterprise, it must be owned by a socially and economically disadvantaged individual. 
       
    2. For an enterprise doing business as a partnership, it is necessary that at least 51.0% of its assets or interest in the partnership proper be owned by a socially and economically disadvantaged individual. 
       
    3. For an enterprise doing business as a corporation, it is necessary that 51.0 percent or more of its assets or interests in the corporate shares be owned by a socially and economically disadvantaged individual(s).

     
  2. Controlled
    That the primary power, direct or indirect, to manage a business enterprise shall rest with the socially and economically disadvantaged individual(s).
     
  3. Share in Payments
    The socially and economically disadvantaged partners, proprietor, or stockholders of the enterprise, as the case may be, shall be entitled to receive 51.0 percent or more of the total profits, bonuses, dividends, interest, payments, commissions, consulting fees, rents, procurement, subcontract payments and any other monetary distribution paid by the business enterprise.
     
  4. Socially and Economically Disadvantaged Individuals
    Individuals who are citizens of the United States (or lawfully admitted permanent residents) and who are Women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific American, or Asian-Indian Americans and any other minorities or individuals found to be disadvantaged by the Small Business Administration pursuant to section 8(a) of the Small Business Act, or individuals 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 and 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 area who are not socially disadvantaged. There shall be reputable presumption that individuals in the following groups are socially and economically disadvantaged, and the office of DBE Program Administration may determine, on a case-by-case basis, that individuals who are not members of one of the following groups are socially and economically disadvantaged.
    1. “Black Americans”, which includes persons having origins in any of the Black racial groups of Africa;
       
    2. “Hispanic Americans”, which includes persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish or Portuguese culture or origin, regardless of race;
       
    3. “Native Americans”, which includes persons who are American Indians, Eskimos, Aleuts or Native Hawaiians;
       
    4. “Asian-Pacific Americans”, which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific and the Northern Marianas;
       
    5. “Asian-Indian Americans”, which include persons whose origins are from India, Pakistan, and Bangladesh; and
       
    6. “Women”.