We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Written by
Emma Woodward
Emma Woodward is a contributor for Bankrate and a freelance writer who loves writing to demystify personal finance topics. She has written for companies and publications like Finch, Toast, JBD Clothiers and The Financial Diet.
Edited by
Emily Maracle
Emily Maracle is a former small business loans editor for Bankrate.com. She is passionate about creating high-quality content to help educate and make complex topics accessible to all readers.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
If you are a member of a minority community who owns a business, you may be considering getting certified as a minority-owned business. Minority-owned businesses often receive less business financing and grant funding than their competitors. According to SBA statistics, women-owned businesses make up about 51 percent of small businesses but typically only receive 30 to 33 percent of SBA 7(a) loan funding.
Getting a minority-owned business certification can be a helpful way to get access to more funding opportunities and business resources.
A minority-owned business is usually defined as a business that is majority-owned — at least 51 percent or more — by a member of a minority community. These communities can include specific racial or ethnic communities, gender communities and sometimes veterans or family members of veterans. Typically, the owner of this type of business is involved in the business’s day-to-day operations, but eligibility will vary between organizations.
Getting a minority-owned business certification has its perks, including access to extra business resources or business development programs. Certification can also help get small business loans or grants.
Since minority business owners often face discrimination in business lending, giving access to a smaller pool of resources can be a helpful way to make funding more accessible for minority business owners.
Several agencies and organizations offer minority-owned business certifications. Each type of certification has its own specific requirements. They also provide access to different funding and resources. Here’s how to get a minority-owned business certification from some of the main agencies that offer it:
The National Minority Supplier Development Council (NMSDC) was established in 1972 to help Asian-Indian, Asian-Pacific, Black, Hispanic and Native American-owned businesses have equal access to wealth-building opportunities through entrepreneurship. The NMSDC offers a certification for minority business enterprises (MBEs). These businesses are at least 51 percent owned by someone who falls into one of the five minority communities the NMSDC serves.
To get an MBE certification, businesses must apply through the regional NMSDC closest to their company’s headquarters. The application can be completed online.
The U.S. Small Business Administration (SBA) has multiple programs to help minority-owned businesses and businesses operating in underserved communities. Businesses can get certified to be eligible for the program. You can get an SBA minority-owned business certification through these two key SBA programs for minority-owned businesses:
Businesses owned by individuals who are economically or socially disadvantaged can apply for minority-owned business certification through this nine-year program for business development, networking and mentoring.
This certification is for businesses operating in historically underutilized business zones, and participating in the program helps fuel their business.
According to the SBA’s lending report, as of October 18, 2023, 49 percent of 7(a) loan approvals have gone to white-owned businesses, and 32.8 percent of funds have been approved for Black-, Hispanic-, Asian-, Native American- and Alaska Native-owned businesses. Eighteen percent of loans approved have gone to those who did not provide their race.
That said, even with racial disparities in SBA loan funding, they are worth considering if a business has trouble securing traditional financing.
Another federal agency offering certifications for minority-owned businesses is the U.S. Department of Transportation (DOT). It offers certification through its Disadvantaged Business Enterprise (DBE) program.
The DBE program aims to solve discrimination issues for all its transportation-related contracts. They do this by trying to give businesses owned by socially and economically disadvantaged individuals a fair shot at securing contracts for federally funded transportation initiatives.
Qualifying for the DBE certification requires that a business meets the small business size standards and is owned and operated by an individual who is a part of a socially and economically disadvantaged community.
State and local governments may also offer their own minority-owned business certifications that qualify these businesses for certain funding or business resources. Research state or local agencies for minorities in your area to find more local certifications. You could also reach out to your state’s small business association.
Getting certified as a minority-owned business can also be a pathway to getting financial assistance through grants or loans specifically allocated for this type of business. There are both federal and private grants earmarked specifically for minority businesses.
For help finding minority-owned business certifications or grants that fit your business best, look to business resources like:
If you’re not looking to borrow more than $250,000, Accion Opportunity Fund is worth checking out. Accion is a nonprofit that focuses on helping minority and low-income communities obtain financing. They also provide mentoring and educational resources to help small businesses succeed.
Getting a minority-owned business certification can help level the playing field for minority business owners. There are several ways to get certified. Look into all the options to see which certifications you may qualify for and provide you with the most beneficial resources for your business.
MBE stands for Minority Business Enterprise. Official MBE certification can be obtained through the National Minority Supplier Development Council. This certification is available to qualifying businesses with an owner who is at least 25 percent Asian-Indian, Asian-Pacific, Black, Hispanic or Native American.
Typically, a business is considered minority-owned if it is at least 51 percent owned by an individual who is part of a minority community. These communities may include socially or economically disadvantaged groups that qualify through their race, gender or other factors.
Being a minority-owned business can provide special opportunities for resources and business development. It can also be a way to access government contracts or funding.
Arrow Right Contributor, Personal Finance
Emma Woodward is a contributor for Bankrate and a freelance writer who loves writing to demystify personal finance topics. She has written for companies and publications like Finch, Toast, JBD Clothiers and The Financial Diet.
