What is a NAICS code and why is it important to your DBE/MBE/WBE certification?

If your firm is making use of for Deprived Enterprise Enterprise (DBE), Girls’s Enterprise Enterprise (WBE) or Minority Enterprise Enterprise (MBE) certification, you will want to present your firm’s NAICS code(s), additionally typically referred to as your major business classification.

NAICS stands for North American Trade Classification System and is a normal utilized by federal businesses to classify companies. You may search for acceptable NAICS codes right here: https://www.naics.com/search/.

For DBE certification, a firm will solely be licensed below the NAICS codes the place the deprived proprietor(s) can present that they’ll management the agency. 49 C.F.R. §26.71(n).  For instance, if the proprietor spent their total profession managing a retail retailer, then bought a manufacturing firm, they could have a troublesome time displaying that they’ve the data and expertise obligatory to management a manufacturing firm.  The corporate will solely be licensed within the NAICS codes the place it can show the proprietor has that management and the corporate can carry out that work, and these NAICS codes will seem on the certification certificates.

Equally, purposes for WBE and MBE certification should show the flexibility to management their enterprise within the industries indicated by their NAICS codes.

If a enterprise expands and needs to grow to be licensed below extra NAICS codes, it should observe the method set forth by the certifying company to show the flexibility to management the enterprise in that space and carry out that work.

Lastly, in case you are a WBE, you might have considered trying to see if changing into a Girls Owned Small Enterprise (WOSB) or Economically Deprived Girls Owned Small Enterprise (EDWOSB). The federal program present extra alternatives for companies holding these certifications, and are particular to sure NAICS codes.

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