The following basic criteria are used by BMWBO to evaluate eligibility for certification. However, meeting these criteria does not guarantee that an application will be approved. This is only intended as a general overview.

Basic requirements that cannot be waived

• Be at least 51%-owned and controlled by qualified minorities and/or women.
• Qualify as a small business (no more than 100 employees).
• Be owned by a United States citizen or citizens.
• Be in business for at least one year or have a two-year business plan reviewed by a Small Business Development Center (SBDC).
• Be independent of any other business entity or entities.
• Be a for-profit business (non-profits cannot become certified).
• Provide and be qualified to provide the goods and services for which it is being certified.

Additionally, the woman or minority owner must hold the highest position in the company.

Citizenship and legitimate minority group membership must be established through birth certificates, military records, passports, or tribal cards. Minority groups eligible for certification include African Americans, Hispanic Americans, Native Americans, and Asian Americans.

A business located in a state other than Pennsylvania must first obtain state-level certification in its home state, if such certification is available. “Home state” is defined as the state where the company’s headquarters are located.

Ownership
Capitalization of the company, stock ownership (if applicable), and the distribution of risks and profits must substantiate that the minorities and/or women applying for certification really own the business. Companies acquired as gifts, without sufficient consideration, will be closely examined to assure they meet the requirements of the certification program.

De facto (on paper) ownership is not sufficient to qualify. Even when company documents support these basic criteria, certification can be denied if the business operations do not reflect the ownership shown on paper.

BMWBO conducts a thorough review of company ownership, management control, and operational control to determine if minority and/or woman ownership of the company is real, substantial, and likely to continue. Deception relating to certification of an MBE or WBE, such as the transfer of ownership for the purpose of obtaining MBE/WBE certification, is a violation of Pennsylvania Law #1984-230 and can lead to prosecution.

Management Control
The minority or women owners must possess the power to make day-to-day and long-term decisions on matters of management, policy, and operations. The firm must not be under any formal or informal restrictions (such as bylaws, partnership agreements, etc.) that limit the authority of the minority and/or women owners to make decisions and determine the future of the business.

Operational Control
Minority and/or women owners must demonstrate that they possess the experience, expertise, and knowledge to operate their particular types of business. Generally, expertise limited to office management, administration, or bookkeeping functions unrelated to the principal business activities of the company is insufficient to demonstrate control.

Women and/or minority owners must also verify that they hold any licenses or certifications required by the type of business in which they are engaged.

While persons other than the owner(s) may have supervisory responsibilities within the company, ultimate supervision must rest in the hands of the minority and/or women owners.