Minority Business Enterprise (MBE) Program
The MBE Program pertains to certain federally-funded contracts awarded by the City of Madison.
In order to be certified as an MBE, a firm must be:
- Organized as for-profit business, performing a commercially useful function;
- At least 51 percent owned by one or more racial/ethnic affirmative action group members; and
- Controlled (managed and operated daily) by one or more racial/ethnic affirmative action group member(s).
There are no size restrictions for MBE certification.
The MBE program relates to the procurement of supplies and services with certain federal funding. For example, federal Community Development Block Grant (CDBG) funds have a requirement that contractors solicit bids from MBE-certified firms for those projects. The CDBG program is administered by the U.S. Department of Housing and Urban Development.
A responsive bidder on a project with an MBE goal must meet the goal using firms certified as MBEs, or show good faith efforts to do so.