Minimizing the gap between funding and opportunities imparted to minority-owned businesses compared to others is very important. In addition to this, many programs have been launched to allow minority-owned businesses to grow. The certificate carried by minority-owned businesses has access to special government programs. These programs include government contracts that will give a disadvantaged business a boost.

What are the requirements to qualify as a certified minority-owned business?

Small businesses seeking to acquire a Minority Business Certificate should contact the National Minority Supplier Development Council (NMSDC). NMSDC is an organization that focuses on improving business prospects for certified minority businesses and connecting them with members of the corporate industry. For Certification, an application can be submitted online and the requirements are:

• The business must be at least 51 percent minority owned, meaning it must involve someone who is 25 percent African American, American Indian, Asian American, Alaskan Native, Hispanic, or Native American.

• This is confirmed through screening tests and interviews along with the physical visit.

• The minority owner member(s) must be performing the day-to-day management and operations of the business.

• Must be a for-profit organization located in the US or its trust territories.

What are the benefits of being a certified minority-owned business?

Access to Corporate and Government Contracts:

By law, many government organizations are required to do business with minority-owned businesses. Therefore, it is mandatory to buy a specified minimum percentage of the goods from them. Contrary to this, a significant number of organizations are eager to start business with them, even if these companies are not required to do so. These companies are well known about the advantages of purchasing the goods and services of certified minority-owned businesses. This certificate imparts a way to differentiate a specific company from other competing providers. In addition to this, these companies also have the information of the companies and government organizations that want to buy the supply needs of the certified companies. This list thus initiates your focused approach to interested customers.

Provided Financing:

According to the research, if access to debt and equity capital is measured among minority-owned businesses, and if not, minorities are private. Therefore, many programs are launched to minimize this gap in funding. Certification is required to take advantage of these programs. If the programs do not require it, this certificate elevates and legitimizes the status of a company.

A unique set of equity financing provided can structure a company’s equity investment. Companies are required to obtain certification to obtain the benefit of it. Many capital investors today maintain a percentage of capital to invest in Certified Companies considering the benefits of doing so.

A large amount of debt financing is also available for these companies. To access these loans, the company must have a certification as Equity Financing. Therefore, these loans offer lower interest rate terms compared to the general interest rate imposed and more relaxed collateral requirements. Many organizations also provide grants to support these businesses.

Training and Networking Opportunities Encouraged:

Through Certification, a Minority Business is empowered through training and networking programs. These programs will serve them well as they expand their reach to new clients while also imparting the best practices required for a successful effort. Along with online courses, many conferences and events are organized that improve business processes and profits.