Attention, Georgia small business owners: the state offers several programs that provide Disadvantaged Business Enterprise (DBE) certification to businesses majority-owned by individuals who are socially or economically disadvantaged. Earning this certification comes with significant benefits, giving qualifying businesses a competitive edge when bidding on state contracts with agencies like MARTA and the Georgia Department of Transportation (GDOT).
The Purpose of Georgia’s DBE Certification Programs
The purpose of these programs is to increase the visibility of certified minority-owned businesses with state and local officials, as well as private sector suppliers, to help create subcontracting opportunities.
Georgia Law & Tax Incentives for Certified DBEs
The authority for these programs is vested under state law, O.C.G.A. § 48-7-38, which states, “When computing the taxable net income of a Georgia base corporation, partnership, or individual, there shall be subtracted from federal taxable income or federal adjusted gross income 10 percent of the amount of qualified payments to certified minority subcontractors.” This essentially amounts to the state rewarding organizations that do business with certified DBEs through tax incentives on the amount of services paid. This 10% is material to organizations awarding large-scale contracts.
Who Qualifies for DBE Certification in Georgia?
Certification is available to a wide range of Georgia businesses, including women-owned, minority-owned, veteran-owned, and service-disabled veteran-owned companies.
To qualify, the potential applicant must be a for-profit organization that is at least 51% owned and operated by a socially or economically disadvantaged individual or group and based in Georgia.
From there, the application process is based on the location of the business in the state of Georgia. At the time of this post, the Georgia Unified Certification Program (GUCP) is available to all members in Georgia, except those in Fulton, DeKalb, or Clayton counties. These counties are certified separately through the Metropolitan Atlanta Rapid Transit Authority (MARTA).
Additional DBE Certification Programs in Atlanta
In addition to the statewide program, the city of Atlanta, through the Office of Contract Compliance, offers two more programs for the same class of individuals. These programs are the Equal Business Opportunity (EBO) and Small Business Opportunity (SBO). While the qualifications of these programs are slightly different than GUCP, the underlying goal is the same: to certify qualifying entities and offer them increased access to work within the city of Atlanta.
Minority Business Enterprise (MBE) Certification in Georgia
Another program is the Minority Business Enterprise (MBE). This program is only available to existing and certified DBE organizations and operates as a separate certification. It supports these businesses through offering education, networking, and additional resources for all certified members. The only additional requirement over DBE certification is that the owner of such a business be a minority.
Work With an Experienced Georgia Business Attorney
Thrift McLemore’s Georgia business attorneys are well-versed in the qualifications and necessary paperwork involved with becoming a DBE in Georgia. Call us at 678-882-0830 to discuss how we can assist you with the application process and help you become a registered Disadvantaged Business Enterprise today.
