A diverse supplier certification is a third party’s statement that a business meets a set of ownership or eligibility rules. Some come from private organizations and some from the federal government. They test different things, so two certificates that look similar can mean quite different things on your supplier list.
This guide compares the main U.S. certifications, explains what each one checks, and lists what to confirm before you count a supplier in your reporting.
Which certifications are most common?
| Certification | Issued by | Basic test |
|---|---|---|
| Minority Business Enterprise (MBE) | NMSDC, private | At least 51% owned, controlled and operated by U.S. citizens from a recognized minority group |
| Women’s Business Enterprise (WBE) | WBENC, private | At least 51% owned, controlled, operated and managed by women |
| LGBT Business Enterprise (LGBTBE) | NGLCC, private | At least 51% owned and operated by LGBTQ individuals |
| Disability-Owned Business Enterprise (DOBE) | Disability:IN, private | At least 51% owned, operated, managed and controlled by people with disabilities |
| Veteran’s Business Enterprise (VBE) | NaVOBA, private | At least 51% owned, operated and controlled by U.S. military veterans |
| Women-Owned Small Business (WOSB) | SBA, federal | A small business at least 51% owned and controlled by women who are U.S. citizens, with women running daily operations |
| HUBZone | SBA, federal | A small business at least 51% owned by U.S. citizens or certain other qualifying owners, with its main office in a HUBZone and at least 35% of employees living in one |
| Veteran-Owned and Service-Disabled Veteran-Owned Small Business | SBA, federal | At least 51% owned and controlled by veterans, or by service-disabled veterans for the second status |
These are summaries. Each program has more detail, so read its current rules before you rely on one.
How do private and federal certifications differ?
Private certifiers such as NMSDC and WBENC were built around selling to large companies. NaVOBA, for example, says its program is private and separate from the SBA’s veteran certification. Federal certifications exist mainly for federal contracting, where the government sets goals: 5% of prime dollars for women-owned small businesses and 3% for HUBZone firms.
The two can overlap. WBENC is one of four SBA-approved third-party certifiers for the WOSB program, though firms still have to file through the SBA’s portal. A business can hold both, as Hubzone Depot does. They are still separate checks with separate paperwork.
Does every company accept the same list?
No. Each company sets its own rules, so check the policy of the program you are reporting to. ExxonMobil’s Tier II guidance, last updated in October 2024, says it accepts both certified and self-classified diverse and small businesses in Tier II reporting. JPMorganChase’s Tier 2 program refers to certified small and diverse businesses. A supplier that counts for one customer may not count the same way for another.
What should you confirm before counting a supplier?
- The certificate is current. Certifications expire or need renewal, so record the end date and set a reminder. NaVOBA, for one, runs on a three-year term.
- The legal name matches. The name on the certificate should match the entity on your purchase orders, not a parent or a sister company.
- You checked the source. Look the firm up with the certifier where you can, rather than relying only on a PDF the supplier sent.
- You count it once. A business may hold several certifications. ExxonMobil asks suppliers to choose one category for reporting to avoid double or triple counting.
- The rules have not moved. Public lists can change quickly. Federal DBE firms are being reevaluated and Texas has been in court over its HUB rules.
Which certification should a supplier get first?
Start with the customers you want. Ask which certifications their programs recognize, then compare the effort. If you also sell to the federal government, look at the SBA programs, since the set-aside programs depend on them. Our guide to women-owned certification covers that path in more detail.
Where Hubzone Depot fits
Hubzone Depot is an SBA-certified HUBZone and Women-Owned Small Business and a WBENC-certified Women’s Business Enterprise. Our capability statement lists our certifications and the products we supply.
Frequently asked questions
What is a diverse supplier certification?
It is a third party's confirmation that a business meets a program's ownership or eligibility rules. Private groups such as NMSDC and WBENC issue some, and the SBA issues federal ones such as HUBZone and WOSB.
What ownership percentage do most certifications require?
The main programs in this guide use at least 51% ownership by the group they cover, usually with control or management tests as well. HUBZone also requires a principal office in a HUBZone and at least 35% of employees living in one.
Is WBENC the same as WOSB?
No. WBENC is a private certification used widely with corporate buyers. WOSB is an SBA program for federal contracting. WBENC is one of four SBA-approved third-party certifiers, but firms still have to file through the SBA's portal.
Do companies accept self-certification?
It depends on the company. ExxonMobil's Tier II guidance, updated in October 2024, accepts certified and self-classified businesses in Tier II reporting. Other programs may require a certificate, so check the program's rules.
Can one business count in more than one category?
A business can hold several certifications, but be careful when reporting. ExxonMobil, for example, asks suppliers to choose one category for reporting so spend is not counted twice.
