The following definitions of ownership classifications are from various governmental agencies.
Minority Business Enterprise (MBE)
A business enterprise is classified as a minority-owned business if the company:
- is at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged. In the case of a publicly owned business, at least 51 percent of its stock must be unconditionally owned by one or more socially and economically disadvantaged individuals such as African Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans and Subcontinent Asian Americans
- has management and daily business operations controlled by one or more such individuals.
Women-Owned Business Enterprise (WBE)
A business enterprise is classified as a woman-owned business if the company is at least 51 percent owned, controlled, and operated by a woman or women.
Historically Underutilized Business Zone
Small Business Concern (HUBZone)
A business enterprise is classified as a HUBZone business if it is located in a historically underutilized business zone (HUBZone), is owned or controlled by one or more U.S. citizens and has at least 35 percent of employees residing in a HUBZone. A HUBZone is an area that is located on one or more of the following:
- A qualified census tract (as defined in section 42 (d) (5) (C) (i) (1) of the Internal Revenue Code of 1986);
- A qualified non-metropolitan county that is: not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986), and a) in which the median household income is less than 80 percent of the non-metropolitan State median household income, or b) that based on the rate that is not less than 140 percent of the statewide average unemployment rate for the State in which the county is located;
- Within the external boundaries of an Indian reservation.
Veteran Business Enterprise (VBE)
A business enterprise is classified as Veteran owned if the company is at least 51 percent owned by one or more veterans, who control and operate the business. The term "veteran" (38 U.S.C. '101(2)) means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable.
Disabled Veteran Business Enterprise (DVBE)
- Any veteran that was disabled during active duty service and received a rating letter
- A similar 51 percent ownership and control of the business is applied to businesses owned by service-disabled veterans.