Texas cities and counties operate their own Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) certification programs that provide procurement preferences for local government contracts. These local certifications are separate from federal certifications like SBA 8(a) and WOSB, and they open access to city and county contracting opportunities that have their own participation goals and set-aside programs.
What Are MBE and WBE Certifications?
MBE and WBE certifications are local government designations that verify a business is owned and controlled by minority or women individuals. Texas cities use these certifications to track and promote diversity in their procurement spending. Each city administers its own program with its own application process, eligibility criteria, and participation goals.
Unlike the state-level HUB program (which covers state agency procurement) and federal certifications like 8(a) and WOSB (which cover federal procurement), MBE/WBE certifications target city and county contract opportunities.
Major Texas City Programs
City of Houston
Houston's Office of Business Opportunity (OBO) administers MBE, WBE, and Small Business Enterprise (SBE) certifications. Houston has one of the most active municipal procurement programs in Texas, with participation goals across construction, professional services, goods, and other procurement categories. The City of Houston also runs the Hire Houston First program promoting local business participation. Houston programs overview.
City of Dallas
Dallas's Office of Procurement Services manages the Business Inclusion and Development (BID) program, which includes M/WBE certifications. Dallas sets participation goals on city contracts and requires prime contractors to demonstrate good faith efforts to include certified firms. Dallas programs overview.
City of San Antonio
San Antonio's Department of Economic Development administers the Small Business Economic Development Advocacy (SBEDA) program, which includes M/WBE goals for city procurement. The program sets participation goals for prime contracts and encourages subcontracting to certified firms. San Antonio programs overview.
City of Austin
Austin's Small and Minority Business Resources Department manages MBE/WBE certifications and administers the city's Minority-Owned and Women-Owned Business Enterprise Procurement Program. Austin sets participation goals and provides assistance to certified firms seeking city contract opportunities.
City of Fort Worth
Fort Worth's M/WBE Office certifies minority and women-owned businesses and sets participation goals on city contracts. Fort Worth also accepts certifications from some other Texas cities and certification agencies through reciprocity agreements.
General Eligibility Requirements
While each city has its own specific criteria, common MBE/WBE eligibility requirements include:
- Ownership: At least 51% owned by a qualifying minority individual (for MBE) or woman (for WBE). Qualifying minority groups typically include Black, Hispanic, Asian Pacific, Native American, and in some programs, Asian Indian Americans.
- Control: The qualifying owner must manage and control the daily operations of the business.
- Location: Some cities require the business to be located within the city limits or within the metropolitan area. Others accept businesses from anywhere that wish to do business with the city.
- Size: City programs often have their own size limits, which may differ from SBA size standards.
- Independence: The business must be an independent business, not a subsidiary or affiliate of a larger firm.
How to Apply
The general application process for city MBE/WBE certification involves:
- Identify the cities: Determine which Texas cities you want to do business with and apply for their specific certifications.
- Gather documentation: Formation documents, operating agreement, tax returns, personal financial statements, proof of minority or woman ownership status, and business licenses.
- Submit the application: Most cities have online application portals. Some accept paper applications.
- Interview/site visit: Some cities conduct an interview or site visit as part of the certification review.
- Certification decision: Processing times vary from 30 to 90 days depending on the city.
Most city MBE/WBE certifications are free, though processing times and renewal requirements vary.
Reciprocity Between Cities
Some Texas cities accept certifications from other cities or from recognized certification agencies. For example, some cities accept certifications from the National Minority Supplier Development Council (NMSDC) regional affiliates or the Women's Business Enterprise National Council (WBENC). Check each city's specific reciprocity policies, as this can save time if you are seeking certification in multiple jurisdictions.
Stacking MBE/WBE with Other Certifications
Local MBE/WBE certification is most powerful when combined with state and federal certifications:
- Texas HUB: State procurement preferences. HUB guide.
- SBA 8(a): Federal procurement preferences. 8(a) guide.
- WOSB: Federal women-owned set-asides. WOSB guide.
- HUBZone: Federal location-based preferences. HUBZone guide.
Holding certifications at all three levels — local, state, and federal — maximizes the range of procurement opportunities available to your business. A business with city MBE, state HUB, and federal 8(a) certifications can pursue contracts at every government level.
Complete guide to minority business programs in Texas.
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