The purpose of these FAQs is to assist new applicants better understand the certification process used across the Georgia Minority Supplier Development Council, Inc. (GMSDC) region and across the National Minority Supplier Development Council, Inc. (NMSDC) council network. Business ownership and certifiable documentation may require expert accounting or legal advice.

What are the criteria for certification?
To qualify for an MBE certification, a business must be at least 51% owned, operated, and controlled by a certified supplier of an American ethnic minority group. Minority status constitutes anyone belonging to one of following ethnic groups:

  • Black
  • Asian-Indian
  • Asian-Pacific
  • Hispanic
  • Native American

* Applicant must have an office physically located in Georgia and be authorized by the State and County to do business.

Does GMSDC certify women-owned businesses?
 No, GMSDC Certification is ethnicity-based rather than gender-based. A certification applicant must fall into one of the above ethnic minority categories to qualify. The GMSDC does not certify "non-minority" female-owned businesses.

Does one have to be U.S. Citizenship to qualify for certified suppliership?
Yes! An applicant must be an U.S. citizen either by birth or naturalization. A permanent resident does not qualify.

What is the location of the GMSDC?
GMSDC is located in the Woodruff United Way Building in downtown Atlanta across from Georgia State University's Hurt Park.
100 Edgewood Avenue, Suite 1610
Atlanta, GA 30303
Ph: 404-589-4929
Fax: 404-589-4925
Email: info@gmsdc.org

What is the application fee?
There is a $150.00 non-refundable processing fee for certification.

What are the Annual Dues required for GMSDC Certification?

  • Certification dues are $350.00

What does the Certification Committee look for in an Application?
The committee is looking for ownership, managerial operations and control. Depending on the ownership structure, managerial operations and control can cause the most concerns with the Certification Committee.

  • “Minority group certified suppliers” are US citizens who are African-American, Hispanic American, Native American, Asian-Pacific American and Asian-Indian American. “Ownership” by minority individuals’ means the business is at least 51% owned by such individuals or, in the case of a corporation or a LLC, such individuals own at least 51% of the shares and control Corporation’s Board of Directors or the LLC’s Board of Managers.
  • The minority owners shall possess the title and power to direct or cause the direction of the management and policies of the business and to make independent, unilateral day-to-day business decisions as well as other major decisions on matters of management, policy, and operations.
  • The business shall not be subject to any formal or informal restrictions, through, for example, by-law/operating agreement provisions, partnership agreements or Charter requirements for cumulative voting rights or other arrangements that prevent the minority owners from making a decision for the business “without the cooperation or vote of any owner who is not a minority.”
  • In summary, the “certifiable MBE” must demonstrate operational and managerial control of the firm. This control shall “be real, substantial and continuing and shall go beyond the pro forma ownership of the business as reflected in the ownership documents. If the owners of the business who are non-minorities are disproportionately responsible for the operation and management of the business, then the firm is not controlled by minorities and shall not be considered a certifiable MBE.”

How long is the New MBE Certification process?
MBE Certification procedures are lengthy (35 to 90 days), and depending on the ownership structure may take between 60 to 90 days to complete once all documents necessary are provided. If the documentation does not meet our requirements, your company will be contacted.

Please note the following seven (7) steps must be completed "in full" to obtain valid Minority Business Enterprise certification:

1) Receive application and nonrefundable APPLICATION FEE ($150.00) in to the GMSDC office. (DATE RECEIVED XX/XX/XX);

2) Submit all required support DOCUMENTATION. You will be notified by fax or email of incomplete application. (NOTE: You need to have both an operational fax number and email address);

3) Certification Committee REVIEW (usually meets the 1st or 2nd Thursday of each month) and recommendation for site visit or denial of applicant;

4) SITE VISIT with principles;

5) APPROVAL by Board of Directors (the Board physically meets every other month, other months they votes electronically);

6) Notification of Board approval and submission of GMSDC INVOICE (see Executive Director's letter that accompanied MBE application) and Minority Business Information System (MBISYS) Database Profile Form. This ASSESSMENT FEE MUST BE PAID WITHIN 30 days of receipt (if not, you information becomes dated and must restart the process);

7) “OFFICIAL” GMSDC WELCOME LETTER and MBE Certificate faxed/mailed.

What are NAICS codes?
North American Industry Classification System (NAICS) is an industry classification system that groups' establishments into industry sectors based on the activities in which they are primarily engaged. The NAICS is a comprehensive system covering the entire field of economic activities, producing and non-producing. This system replaces the former Standard Industrial Classification (SIC) designations. Corporate America and local, state, and federal government entities use NAICS codes. You are required to identify your businesses' NAICS designation code. The NMSDC and corporate buying groups use NAICS codes to identify certified MBEs.

Where may I locate my business NAICS code?
You may locate the NAICS code at your local public library or on the Internet. The Website address is www.naics.com.

Why does the MBE Certification process take so long?
The process time depends on the firm’s legal structure and the complexity of its ownership structure. However, the process has some built-in statutory activities that must take place. During any average month, the certification staff’s “work-in-process” includes four groups of applicants: new MBE applicants, site visits for last month’s applicants, annual Recertification of expiring Certified MBE, and out-of-state Reciprocal Certified MBEs.

NOTE: annually, Certified MBEs have to be re-certified on their anniversary date (month of your original certification). The Annual Assessment Fee of Recertification is $300.00. The process included a submission of Recertification Application and Minority Business Information System (MBISYS) Database Profile Form. Recertifications, please start the recert process 60 to 90 days before your anniversary date.

Are there any conditions to NEW MBE Certification?
Certification offer numerous benefits; however, there are some “Conditions of New MBE Certification:”

  • First, annual financial assessment fee must be paid within 30 days of receipt of invoice or your certification approval will be invalidated. If your MBE certification lapses, you will be required to complete the entire “certification process.”
  • Second, you must notify (within 30 days) the GMSDC of any changes in ownership, control or operations in your firm. This includes name changes. Annually you are required to submit a recertification application and MBISYS form.
  • Third, your initial certification “anniversary date” is very important. Sixty (60) to ninety (90) days prior to your certification’s anniversary/expiration date, we recommend you start the recertification process. Your anniversary date will be the last day of the month that your firm was certified and appears on your MBE certificate as your expiration date. Even though you may not receive an annual invoice, you are responsible for the timely processing of your assessment, recertification statement and MBISYS form. Your ownership of this recertification process ensures there is no lapse in your MBE benefits! Your anniversary date will not be “moved or changed” and will remain with your organization throughout the Certified MBE process. After your first year’s assessment as a Certified MBE, subsequent assessments are $350.00 annually. The recertification and MBISYS documents are located in the forms section at www.gmsdc.org.

What happens if my firm does not get certified is there an Appeal Process?
An Applicant business, which believes it has been wrongly denied certification as an MBE or wrongly decertified may file an appeal, signed and dated, with the GMSDC Board of Directors within thirty (30) days of denial or termination of certification. The Board will review and make a recommendation. The applicant will be notified in writing by the Executive Director of the Board’s decision. The decision of the Board is final.

If my application for New MBE Certification is denied, is there a Reapplication Process?
Any applicant whose application for certification or recertification is denied and such denial affirmed, may after one year, reply for certification upon the submission of information indicating a change in status or other circumstances that prevented certification or which caused a denial or termination of certification.

What documents should I submit if my business is incorporated?
If incorporated, you must provide the following:

  • Submit $150.00 non-refundable processing fee
  • Fill out GMSDC Application (Please fill out all applicable fields. If field is not applicable please write N/A)
  • Certificate of Incorporation
  • Articles of Incorporation
  • Stock Certificates and Stock Ledger**
  • Minutes to Board of Director's Meetings
  • Amendments (if applicable)
  • Any agreement(s) pertaining to the ownership, operation, and control of business
  • Business cards of all principals
  • Resumes of all principals
  • Copy of Driver's Licenses of all principals
  • Proof of US Citizenship (Birth certificates or U.S. Passports only) of all principals
  • Corporate Bank Resolution Agreement(s) including Bank Signature Card
  • Business Lease Agreement(s) (Security Deeds, it home-based)
  • Equipment Lease Agreement(s)
  • Insurance Agreement(s)
  • Copy of the businesses' executed cancelled check
    ** Stock Certificates -- For incorporated businesses, provide a copy of all Stock Certificates. Certificates should reflect the total stock distribution (e.g., who owns what quantity of shares). If some of the shares that have not yet been issued, provide a statement (signed and dated by the appropriate corporate officer) of the number of shares that are outstanding.

What documents should I submit if my business is a Partnership?
If a Partnership you must provide the following:

  • Submit $150.00 non-refundable processing fee
  • Fill out GMSDC Application (Please fill out all applicable fields. If field is not applicable please write N/A)
  • Partnership Agreement (Executed)
  • Amendments to the Partnership Agreement (if applicable)
  • Any additional agreements pertaining to the partnership ownership, operation and control of business
  • Business cards for all partners
  • Resumes of all partners
  • Copy of Driver's Licenses of all partners
  • Proof of Citizenships (Birth certificates or U.S. Passports only) of all partners
  • Bank Resolution Agreements including Bank Signature Card
  • Business Lease Agreement(s)
  • Equipment Lease Agreement(s)
  • Insurance Agreement(s)
  • Copy of executed cancelled check on partnership's bank account.

What documents should I submit if my business is a Limited Liability Company (LLC)?
If an LLC you must provide the following:

  • Submit $125.00 non-refundable processing fee
  • Fill out GMSDC Application (Please fill out all applicable fields. If field is not applicable please write N/A)
  • Certificate of Organization
  • Articles of Organization
  • Unit Certificates for all principals and Unit Ledger
  • Operating Agreement
  • Amendments (if applicable)
  • Any agreements pertaining to the ownership, operation and control of LLC
  • Business cards on all principals
  • Resumes of all principals
  • Copy of Driver's Licenses on all principals
  • Proof of Citizenships (Birth certificates or U.S. Passports only) on all principals
  • Bank Resolution Agreements including Bank Signature Card
  • Business Lease Agreement(s)
  • Equipment Lease Agreement(s)
  • Insurance Agreement(s)
  • Copy of executed cancelled check on the LLC's bank account.
  • Minutes to Board of Manager's Meeting

What documents should I submit if my business is a Limited Liability Partnership? (LLP)
If a Limited Liability Partnership you must provide the following:

  • Submit $150.00 non-refundable processing fee
  • Fill out GMSDC Application (Please fill out all applicable fields. If field is not applicable please write N/A)
  • Certificate of Limited Liability Partnership
  • Articles of Organization
  • Operating Agreement(s)
  • Unit Certificates
  • Any Amendments
  • Any agreements pertaining to the ownership, operation and control of LLP
  • Business cards on all partners
  • Resumes of all partners
  • Copy of Driver's Licenses on all partners
  • Proof of Citizenships (Birth certificates or U.S. Passports only) on all partners
  • Bank Resolution Agreements including Bank Signature Card
  • Business Lease Agreement(s)
  • Equipment Lease Agreement(s)
  • Insurance Agreement(s)
  • Copy of executed cancelled check on the partnership's bank account.

What documents should I submit if my business is a part of a Joint-Venture (JV) Partnership?
None! Neither the GMSDC nor the NMSDC certifies JVs (Call GMSDC for clarification).

FINANCIAL STATEMENTS
The National Minority Supplier Development Council (NMSDC) requires one (1) full year (e.g., twelve months - no exception) of financial statements be submitted regardless of the length of time you have been in business.

What Financial Statements should I submit if my company is a Startup Business or operating less than 12 months?
If your company has been in business for less than a year, provide a copy of the following:

  • Beginning Balance Sheet & Source and Use Statement
  • Actual Profit and Loss Statement for the length of time you have been in business
  • Actual Cash Flow Statement for the length of time you have been in business
  • Proforma (projected) Profit and loss Statement for the remaining months equaling 12 months.
  • Proforma (projected) Cash Flow statement for the remaining months equaling 12 months.
  • Ending Balance Sheet

* If your Business runs on a Fiscal year, submit documents for a twelve month period coinciding with the fiscal year period
* If your Business runs on a Calendar year, submit financial statements for the previous Calendar year
* If your Business has been operating for less than 12 months (e.g., two-months for example), you should submit actual financial statements for the two-month operations and pro-forma for the remaining ten-(10) month, totaling 12 months.

TAX INFORMATION
NMSDC policy requires submission of your Business Tax Return for the preceding year. If you have been in business for more than a year and have not filed taxes, submit a copy of the previous year's tax return and a copy of your Automatic Extension Agreement.

For Start-up Businesses, please write a letter indicating you are a start-up business and have not filed taxes.

What happens after I become certified?
Upon payment of dues, a Certificate, Calendar of Events, and Welcome letter will be submitted to new certified supplier. Upon request, a User-Name and Password will be issued for access into the GMSDC directory available on our Website. certified supplier will obtain access to all MBE, government agencies and corporate representatives affiliated with the council. A complete database including contact names, mailing addresses and e-mail addresses will be available. certified supplier will also have access to on-line Bid Opportunities submitted by our corporate and government certified suppliers. All new certified suppliers will be invited to upcoming New certified supplier Orientation, Bi-monthly luncheons, and all other GMSDC/NMSDC sponsored networking and procurement functions.

How can I capitalize on being a certified supplier of the Council?
There are several ways to take full advantage of all the Council offers. However, active involvement and participation are keys to capitalizing on your certified suppliership opportunities.

1) Become an active participant in GMSDC committees. Committee structures exist to assist GMSDC in the execution of its annual operations and provide certified suppliers with a direct opportunity to network with other MBE, government and corporate affiliates. The following committees are available for certified supplier participation:

  • The MBEIC (Minority Business Enterprise Input Committee)
  • The Annual Awards Dinner Committee
  • The Business Opportunity Expo Committee
  • The Golf Committee
  • The Certifications Committee
  • The Hard Hat Committee
  • The Individual Procurement Conference Committee

2) Target specific corporation(s) you would like to do business with. Research the company's business and develop a strategic approach for conducting business. Recertified supplier, every corporation is currently buying from someone! Who are your competitors?

3) Participate in educational seminars offered by the Council, bi-month1y luncheons, National conferences and all other GMSDC/NMSDC networking functions.

4) Provide the Council with feedback on your networking success stories. Our monthly newsletter, Newsline Online, highlights certified suppliers who have had recent success in obtaining contracts and developing successful partnerships.

5) Update our offices on any changes regarding the operation of your business. Communication to certified suppliers is driven by updated information contained in our database. Please keep us informed of any changes.

6) Continue to effect the successful operations of your business by offering quality, timely, and professional services.

Copyright © 2005 GMSDC. All rights reserved. Powered by AECsoft USA