Last updated on April 7th, 2025

Minority- and women-owned businesses in New York State experience certain advantages when it comes to government contracting in the construction industry. It’s important to understand the benefits of a Minority- and/or Women-owned Business Enterprise (MWBE) certification, as well as the steps required to earn this certification in New York.

The MWBE certification program in New York State was established in 1988 as a way of expanding business opportunities for minority and women business owners. The program, which is designed to encourage diversity in government contracting, grants certain advantages to businesses possessing an MWBE certification.

In accordance with New York State regulations, the current MWBE participation goal for state-funded contracts is 30 percent. This regulation applies to state contracts “with a value (1) in excess of $25,000 for labor, services, equipment, materials, or any combination of the foregoing, or (2) in excess of $100,000 for real property renovations and construction.” Contractors must demonstrate a “good faith effort” to reach this 30% participation goal.

Because contractors on state-funded projects are required to meet this participation goal, subcontractors certified as MWBEs stand a better chance of being awarded public works jobs.

What qualifies a business as an MWBE?

A business is considered an MWBE if it meets the following criteria:

• The business must be at least 51% owned, operated, and controlled by a U.S. Citizen(s) or U.S. permanent resident(s) who are women and/or members of designated minority groups (i.e., Black, Hispanic, Asian-Pacific, Asian-Indian, Native American or Alaskan Native).

According to the law, businesses applying for MWBE certification must prove that the ownership is “real, substantial and continuing, and the minority members and/or women must exercise the authority to independently control the day-to-day business decisions.”

• The business must have legal authority to conduct business in New York State.
• The business owner must not have a personal net worth exceeding $15 million after allowable deductions.
• The business must have been in operation for at least one year at the time of application.
• The business must qualify as a small business, employing no more than 300 individuals.
• The business must be for-profit, operate independently of other firms, and must be an active business.

The State has created an online MWBE Certification Assessment Tool to help applicants determine whether they meet the criteria for certification.

What are the benefits of MWBE certification?

Advantages of having a MWBE certification include the following:

• Eligibility for procurement and contracting opportunities with New York State agencies and authorities.
• Placement on the certified MWBE directory, where state agencies and vendors can search for and contact subcontractors.
• Access to lending and bonding programs available exclusively to certified MWBEs.
• Access to alerts for upcoming procurement opportunities (when you register with the NYS Contract Reporter)
• Access to a network of support services and business development workshops.

What are the steps for certification?

1. Once you have established that your business meets the criteria of an MWBE, you will need to review the required documentation for the MWBE application. Required documentation differs based on the type of business you operate (corporation, LLC, partnership, or sole proprietorship). Some examples of required documents are: resumes for owners and other key employees, W-2s, tax returns, copies of licenses and certifications, current leases and deeds, etc. For full lists of required documentation for each type of business, you can refer to the guidelines on Empire State Development’s website.
2. Once you’ve prepared the required documentation, you can begin the application process. The application is free of cost and can be used for both certification and recertification. You can access the application on the New York State Contract System Timelines for certification approval vary, but approval can take up to two years in certain cases.
3. It’s important to thoroughly review your application before submitting it. Errors in your application can lead to delays in certification. Please note: if denied certification, you will have to wait another two years before re-applying. Because the application is extensive, you may want to consult an attorney who can review your application for you.

In summary, having your small business certified as an MWBE can open up major opportunities for growth, exposure, and network expansion. If your women- or minority-owned business meets the qualification criteria, you may want to consider MWBE certification as a way to take advantage of available opportunities in New York State and propel your business forward.