Eligibility Requirements for DBE & ACDBE Certification

Small Business Requirement

The firm must be an existing for-profit "Small Business Concern" as defined by the Small Business Administration (SBA) regulations (13 CFR Part 121). SBA size standards vary by NAICS code. Additionally, average annual gross receipts (including affiliates) over the previous three fiscal years must not exceed the USDOT cap, currently $30.72 million (adjusted for inflation — verify current threshold at ucp.dot.ca.gov).

51% Ownership Requirement

The firm must be at least 51% owned by one or more socially and economically disadvantaged individuals. For corporations, this means 51% of each class of voting stock and 51% of aggregate stock. For partnerships, 51% of each class of partnership interest. For LLCs, 51% of each class of member interest. Ownership must be real, substantial, and continuing.

Independence & Control

The firm must be an independent business. One or more socially and economically disadvantaged owners must control its management and daily operations.

Personal Net Worth Limit

Each disadvantaged owner's personal net worth must not exceed $2,047,000 (raised from $1,320,000 by the October 2025 IFR), excluding ownership interest in the applicant firm and equity in the owner's primary residence. Retirement assets are also fully excluded under the new rule.

Socially & Economically Disadvantaged Status

The owner must be a U.S. citizen or lawful permanent resident who is either:

• A member of a presumed disadvantaged group: Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, or Women
• Found to be disadvantaged on a case-by-case basis by a certifying agency, per 49 CFR Part 26, Subpart D