Disadvantaged Business Enterprise(DBE)
A small business owned by socially and economically disadvantaged individuals, primarily used in DOT-assisted contracts for transit, highways, and aviation.
Overview
The Disadvantaged Business Enterprise (DBE) program is a U.S. Department of Transportation (DOT) initiative ensuring that small businesses owned by socially and economically disadvantaged individuals have equitable access to federally assisted transportation contracts. Unlike the SBA's 8(a) program, the DBE program is specifically tied to DOT-funded projects in highways, transit, and airports, with certification managed by state and local transportation agencies.
Why It Matters in GovCon
For contractors in transportation infrastructure, the DBE program creates both requirements and opportunities. Prime contractors on DOT-assisted projects must typically meet DBE subcontracting goals, creating demand for certified DBE firms. DBE certification opens doors to subcontracting relationships with major primes on highway, transit, and aviation projects funded by federal transportation dollars.
Key Details
- Certification: Managed by state DOTs and transit agencies through the Unified Certification Program (UCP); not the same as SBA 8(a) certification.
- Eligibility: Business must be at least 51% owned by socially and economically disadvantaged individuals with a personal net worth below $1.32 million.
- Goals: Recipients of DOT funds set annual DBE participation goals; prime contractors must demonstrate good faith efforts to meet subcontracting goals.
- Sectors: Applies to FHWA highway construction, FTA transit projects, and FAA airport improvement programs.
- 49 CFR Part 26: The federal regulation governing the DBE program.
Related Terms
- 8(a) Business Development Program
- Small Disadvantaged Business (SDB)
- Department of Transportation (DOT)
- Subcontracting Plan
More Programs Terms
An SBA program that helps small businesses owned by socially and economically disadvantaged individuals compete for federal contracts.
A subcategory of WOSB for women-owned small businesses where the owners are also economically disadvantaged, eligible for additional sole-source contracts.
An SBA program that gives preferential access to federal contracts for small businesses located in economically distressed areas.
A program pairing large experienced contractors with small businesses to help them build capabilities through joint ventures, subcontracting, and technical assistance.
A small business at least 51% owned and controlled by one or more veterans with a service-connected disability, eligible for federal set-aside contracts.
A small business at least 51% owned and controlled by one or more women, eligible for federal set-aside contracts in underrepresented industries.
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