This presentation discusses why small business certification is important for business

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Small Business Certification

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Marc Parham, Radio Show Host, MC/Speaker, Infopreneur
2

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The Facilitator
• KIMBERLY GRIFFIN
• Owner DBE Consulting LLC
• International Flight Attendant
• Airport Consultant. 10 Minute Manicure - Opened 10 Airport locations in
US and Canada).
• Owner Operator of Traveling Grace Massage & Spa Services, Inc. RDU
Airport
• ACDBE, DBE,MBE,WOSB Certified

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Agenda
• History of Minority Business Enterprise Programs
• Minority Certification History
• Why get certified? Why Not?
• Benefits of being certified
• How do I get CERTIFICATION
• Which Certification is right for your business?
• NAICS Codes
• Where do I Start?
• UCP – PERSONAL NET WORTH
• On-Site Visit

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History of Minority Business Enterprise Programs
• MBE- Minority Business Enterprise
• HUB Zone- Historically Underutilized Business
• DBE- Disadvantage Business Enterprise
• SBA- Small Business Administration 8A Program
• SDVOSBC- Service Disabled Veteran-Owned small Business
• ALL AFFIMATIVE ACTION PROGRAMS
• Federal, State, and Local Government Programs

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History of Minority Certification
Programs
• 1960 JFK “gradual corrective change” at Federal Government level
• 1964 Civil Rights Act
• 1968 SBA established 8(a) program
• 1969 US of Minority Business enterprise was established via Executive order
under President Nixon
• 1976 Public Works Bill 10% local set asides for MBEs
• 1976 Primes spell out MBE plans
• City Of Atlanta becomes the Model and Roles out the “Atlanta Plan”
• 1983 MBE program became statutory
• 1987 Major amendment * added “WOMEN”
• 1989- Supreme Court- Richmond v. Croson MBE unconstitutional

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Minority Certification History
•Requires state/local programs to be:
• Supported by compelling interest
• Narrowly tailored to meet compelling interest.
• Which lead to Disparity Studies
• Rulings did not affect federal programs
• 1995 President Clinton reviewed and decided to
“mend it, don’t it”

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Minority Program History Summary
• The purpose of the program is to level the playing
field in a significant portion of the nation’s
economy
• Two Essential points of INTEGRITY:
• - Certification- screen to determine WHO is a
“REAL” MBE/WBE/ACDBEDBE and…
• Monitoring- To determine who is really doing the
work.
• More emphasis on “Race-Neutral”

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Why get certified? Why Not?
• City of Atlanta -Disparity study statistics
• Hispanics MBEs 3%
• African Americans 14%
• Women 17%
• TO INCREASE THE NUMBERS
• Mentor another small business
• Open up more doors
• Partnerships
• Larger contracts

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Benefits of being certified
•23% Federal contracts dollars go to Small
businesses
•5% Federal contracts go to Women
•3% federal go to service disabled veteran-owned
business

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How do I get CERTIFICATION
• In addition to meeting MBE/DBE requirements, firms must also
meet separate SBA small business size standards for their type of
business
• Certain groups are rebuttable presumed to be socially and
economically disadvantaged. These include Native Americans,
Blacks, Hispanics, Asian-Pacific Americans, Subcontinent Asian
Americans, & Women
• Each disadvantaged individual seeking certification for his or her
firm must submit a notarized certification of disadvantage and a
statement of personal net worth

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CERTIFICATION
• Ownership and control requirements provide detailed,
specific, clarified standards for determining whether to
certify firms
• Each state has a Unified Certification Program (UCP) that
certifies DBEs for all DOT recipients in
• Requires on-site visit

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Which Certification is right for
your business?
• MBE
• LSBE
• SBE
• WOSB
• VOSB
• DVOSB
• Hub Zone
• 8A
• Dept. of Health/Dept. of Defense/Dept. Agriculture/ …

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NAICS Codes
• Private sector certification
• WBENC
• GMSDC
• Requirements
• Membership
• Renewal
• Benefits

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Where do I Start?
•Unified Certification Application
•Document Checklist
•Personal Net Worth

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UCP – PERSONAL NET WORTH
•Owner’s share of the assets of the business
•Income Statement-net sales, gross profit, net
profit after tax, dividends/withdrawals
•Working capital

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UCP – PERSONAL NET WORTH
• 1. Add Your Assets
• Cash on hand (checking and saving accounts) Stocks
• Retirement accounts IRAs
• Current pension values
• Cash value of insurance policies (not death benefits)
• Certificates of deposit
• Vehicles
• House
• Other real estate properties
• To determine the current market value of your real estate (like your
home), you can research recent sales of similar properties in your area, or
just consult with a real estate agent. To assess the value of vehicles, check
with current market price guides.

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UCP – PERSONAL NET WORTH
• 2. Total Your Liabilities
• When tallying your liabilities, include these:
• Mortgage remaining
• Credit card debt
• Outstanding auto and student loans
• Income taxes due
• Taxes due on the profits of your investments (if cashed)

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UCP – PERSONAL NET WORTH
•Updates
•Net worth expanded from $750K to $1.3
million

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On-Site Visit
•Where, Why,

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QUESTIONS

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HOW TO CONTACT ME
•marcp@capbuildernetwork.com
•Use the Have Questions Popup on
the CAPBuilder Network Site
•GOTO: www.meetwithmarc.com
•Download my FREE Mobile App
•CALL Me 770-634-7231

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