Certification Process
National Minority Supplier Development Council (NMSDC) certification recognizes those businesses that apply for certification and meet the eligibility criteria. Getting certified begins with gaining an understanding of the certification criteria and gathering the necessary information and documentation to complete the application. A dedicated team of certification specialists will review your application and work with you should you have any questions.
Certification Process
National Minority Supplier Development Council (NMSDC) certification is a rigorous standards-based process that verifies whether a business meets established eligibility requirements.
The certification process begins with a review of NMSDC’s ownership, control, and operational criteria, followed by the submission of required documentation through the application process.
Applications are evaluated by trained certification specialists using uniform national standards. Certification specialists are available to answer questions regarding application requirements and documentation throughout the review process.
Certification is granted only to businesses that meet all applicable eligibility criteria.
NMSDC certification is an eligibility determination and does not guarantee contracts or business outcomes.
Types of NMSDC Certifications
NMSDC offers the following types of certification:
MBE Certification
Minority Business Enterprise (MBE) certification is NMSDC’s longstanding, nationally recognized credential for eligible minority-owned, for-profit businesses and has been offered by NMSDC for more than 50 years. MBE certification requires that a business be at least 51% owned, operated, and controlled by one or more individuals who are members of a recognized minority group. For purposes of certification, a recognized minority group member is an individual who is a United States citizen and who identifies as Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American, as defined by NMSDC certification standards.
Eligibility for MBE certification is determined through a rigorous standards-based review process, which may include document review, interviews, and site visits, to verify ownership, control, and day-to-day operational authority. In the case of a publicly owned business, minority ownership must represent at least 51% of the outstanding equity and confer corresponding control, consistent with NMSDC certification requirements.
MBE certification is an ownership-based eligibility designation and does not guarantee contracts or procurement outcomes.
MCC and MPC Certification
Minority Controlled Company (MCC) and Minority Publicly Controlled Company (MPC) certifications are newer certifications that apply to minority-owned companies that have taken on investment capital to grow their business, and as a result may no longer meet the stringent ownership guidelines of MBE certification.
IFC Certification
Investment Fund Company (IFC) certification is for minority-owned investment funds that are helping minority businesses scale.
Documentation Required
The certification process is standards-based and thorough. Required documentation varies depending on a business’s legal structure, ownership complexity, and operational profile.
All applicants must submit documentation sufficient to verify ownership, control, and day-to-day operational authority, including the following:
- A completed online application, e-signed by the primary owner.
- Proof of citizenship and eligible minority ethnicity, for at least 51% of the ownership of the company.
- A resume for each qualified minority owner, comprising at least 51% ownership.
- Proof of the business’s Federal Tax ID (EIN).
- Business formation documents.
- Proof of the initial capital investment in the business.
- Relevant business licenses.
- Last two years of tax filings.
- Current invoices with proof of payment.
- Franchise agreement
If the company is a LLP or Ltd., applicants must submit the legal documents for all companies involved. For example, if the GP is a LLC, the applicant must submit documents for the Partnership and the LLC.
- Articles of Partnership(for LLP|Ltd)
- Certificate of limited partnership or certificate of formation(for LLP|Ltd)
- Partnership agreements (to include buy-out rights and profit sharing)
- Proof of capital investment (i.e. both side of cancelled checks, initial deposits, bank statements)
- Proof of partnership purchase (i.e. both sides of cancelled checks, deposit slips, bank statements)
- Assumed Name Certificate (filed with the Secretary of State) (if applicable)
- Certificate of Corporation
- Article of Incorporation or certificate of formation (stamped copy from the Secretary of State)
- Articles of Amendment or Certificate of Amendment (if applicable)
- Corporate Bylaws or governing documents
- Proof of Capital Investment (i.e. both side of cancelled checks, equipment receipts, initial deposits, bank statements)
- Minutes of 1st organizational board meeting
- Minutes of the last board meeting
- Minutes of the last meeting where officers were elected
- Copies of both sides of all stock certificates issued (no specimen)
- Copies of both sides of the next consecutive stock certificate not issued
- Current stock ledger
- Proof of stock purchase (i.e. both sides of cancelled checks, deposit slips, bank statements)
- Copy of the purchase or buy|sell agreement with the corresponding proof of payments)(if applicable)
- Copy of any stock options or other ownership options outstanding as well as agreements which restrict ownership or control of minority owners (if applicable)
- Assumed Name Certificate (filed with the Secretary of State) (if applicable)
- Certificate of organization
- Articles of Organization or Certificate of Formation (stamped copy from the Secretary of State)
- Articles of Amendment or Certificate of Amendment (if applicable)
- Operating Agreement
- Proof of Capital Investment (i.e. both side of cancelled checks, equipment receipts, initial deposits, bank statements)
- Minutes of the organizational meeting or minutes of the meeting
- Minutes of the last meeting where managers or members were identified and elected
- Copy of both sides of all certificates of ownership issued (no specimen)
- Copy of both sides of next consecutive membership unit certificate not issued
- Copy of ownership transfer ledger or copy of membership transfer ledger
- Proof of unit purchase (i.e. both sides of cancelled checks, deposit slips, bank statements)
- Copy of the purchase or buy|sell agreement with the corresponding proof of payments)(if applicable)
- Copy of any membership unit options or other ownership options outstanding as well as agreements which restrict ownership or control of minority owners (if applicable)
Frequently Asked Questions
Certification Process
It is our goal to complete certification reviews within 45 business days of the application being submitted.
NMSDC certifications are valid for one year. A brief renewal application should be submitted within 90 days of the expiration date, so a certification can continue uninterrupted.
- Rates for initial certification vary depending on the size of the business. Certification for businesses with revenue under $1 million can be as low as $270, while rates for businesses with annual revenue over $50 million can be as high as $1,700.
- Locate your regional affiliate and then look up the relevant certification and renewal fees on their website.
- A certification team specialist will review your application and documentation. They will contact you if there are any additional details required and to schedule either a site visit or a virtual interview. They will also contact the references you provided and conduct any other research necessary to determine if your business meets the qualifications for certification.
- Once the evaluation is complete, you will be contacted with the results.
- Certified businesses will be added to the database of minority-owned businesses used by corporations and governments to find suppliers.
- Certified businesses will also be given access to that database so you too can seek out other certified minority-owned businesses to work with.
- Certified businesses will also be referred to your local affiliate partner organization so you can take advantage of local networking and development activities, as well as national programs and events.
Ready to Get Certified?
If your business believes it meets NMSDC’s certification eligibility criteria, you may contact our certification team at certification@nmsdc.org
to learn more about the certification process, available certification types, and required documentation.
Certification fees are based on business size and are communicated during the application process. Applicants are required to submit documentation sufficient to verify ownership, control, and operational authority, consistent with NMSDC certification standards.
NMSDC’s national certification team is available to answer questions regarding application requirements and documentation throughout the review process.
