In a DBE certification application, DBE stands for disadvantaged business enterprise. A DBE certification allows businesses to become more successful when attempting to get government contracts. That’s because a percentage of government funding must go towards disadvantaged businesses, and it is what makes DBE certification applications so popular. A DBE certification application differs from an SBA 8a certification or a GSA application in that it is specifically designed for someone who is considered disadvantaged in one way or another.
Here are a few benefits of DBE certifications:
They Help You Get Government Contracts
One of the most common reasons businesses fill out a DBE certification application is because it is a requirement that a portion of government construction contracts goes to businesses with DBE certifications. This means that companies and small businesses with DBE certifications make up a small pool that is promised a certain amount of revenue. Add in the fact that government contracts are more stable and consistent than other contracts and having a DBE certification is a great way to expand and grow a small business.
Public Funding for Transportation Can Rise
When there is a renewed importance put on infrastructure from government bodies, money put into construction contracts rises. That’s why it’s important to fill out a DBE certification application as soon as possible, even if there is not currently much being spent on these contracts. That can change, and your business needs to be ready when more money is put into these contracts. Those who start filling out their DBE certification application once more funding goes into transportation will be late for a contract bid.
Applying to Be a DBE is Easy
One of the best things about the DBE application certification process is that it is easy. It can either be done through a state website, or there are many agencies that work with small businesses to make sure the applications are done properly and timely.
To qualify for a DBE certification application, you must be owned by someone who is considered economically disadvantaged. In other words, at least 51% of the company must be owned or has at least 51% of the stock in the company by someone who is considered disadvantaged. This makes it an excellent option for anyone who is interested in increasing their business’ opportunity.