How Do You Become a Certified Woman-Owned Business in New York?

Woman-owned Business certification is an important option to consider for female entrepreneurs looking to scale their companies in New York — particularly for those who want to do more business with the federal government or corporate America.

While its benefits are abundant, applying for a woman-owned business certification is not the most straightforward process — you have to meet specific qualifications and fill in a lot of paperwork. But fear not, we’ve broken down the ins and outs of certification in New York, as well as the various businesswomen resources unique to the state, to make the process as painless as possible and help you take this big next step.

The origin of certification programs can be traced back to 20 years ago when researchers revealed the severe lack of corporate and government agencies contracting with women-owned businesses. The U.S. government reacted with a goal to award “at least five percent of all federal contracting dollars to women-owned small businesses each year.”

This was achieved in 2015 when 17.7 billion of federal contracting dollars available to small businesses were awarded to Women-Owned Small Businesses (WOSBs). Since then, the government has continued to expand its goals and the resources made available for female entrepreneurs.

The main certification program for women-owned businesses seeking to increase their growth is WOSB, run by the Small Business Administration (SBA). There is also a subset of the WOSB program: the Economically Disadvantaged Women-Owned Small Business (EDWOSB) certification. Both are nationally recognized certifications that facilitate access to federal contracts “set aside” specifically for WOSBs in underrepresented industries, leveling out the playing field for women-owned businesses.

Alternatively, New York business owners have the option of using one of the four SBA-approved third-party certifiers:

• National Women Business Owners Corporation (NWBOC): This organization aims to unite millions of women-owned businesses to advocate for the advancement for all.
• Women’s Business Enterprise National Council (WBENC): WBENC promotes diversity whenever possible and helps businesswomen become certified to go further in their careers.
• U.S. Women’s Chamber of Commerce (USWCC): This organization gives women in business the resources and work they need to grow in confidence and leadership.
• El Paso Hispanic Chamber of Commerce: This resource connects, advises, and coaches women business owners. It also advocates for female entrepreneurs and provides Minority Business Enterprise (MBE) and Women’s Business Enterprise (WBE) certifications.

Qualifications vary depending on the certification for which you apply. So here are the general requirements for the women’s contracting program, according to the SBA website. Your business must adhere to the following guidelines to become a Women-Owned Small Business (WOSB):

• Qualify as a small business as per the SBA small business size standards, which generally use employee size and/or revenue as measures.
• Be at least 51% owned and controlled by women who are U.S. citizens.
• Be managed by women on a day-to-day basis. Women must also be the ones making long-term decisions for the company.
• The highest officer position in the company must be held by a woman on a full-time basis, during normal work hours.

Your business must adhere to the following guidelines to even be considered for an Economically Disadvantaged Women-Owned Small Business certification (EDWOSB):

• Have a personal net worth of less than $750,000. (There are some exclusions.)
• Have an adjusted gross income average over three years of $350,000 or less. (There are some exclusions.)
• Have a fair market value of all assets of $6 million or less. (There are no exclusions.)

The full rundown of qualifications is available online in the Code of Federal Regulations. There is also the option to get a preliminary assessment by the SBA’s Certify website to see if you’ll qualify.

There are two key ways for New York-based businesses to get national certification. The first is self-certification which requires you to answer questions and upload documents (the amount depends on whether you’ve previously participated in SBA programs) through the certify.SBA.gov website. While planning for this, reference the SBA’s preparation checklist which tells you everything you’ll need throughout the process.

Please note that women applying prior to summer of 2020 through the SBA have the option to self-certify through their website; however, after June 30, businesswomen will no longer be able to self-certify. Instead, you will have to certify through an approved third-party agency. Alternatively, you can choose the SBA’s Women-Owned Small Business federal contracting program and apply for certification through their online portal. The SBA application involves two steps:

1. Visit sam.gov (the System for Award Management)
   • It’s free
   • You will have to wait at least 72 hours before step 2
2. Visit certify.sba.gov and complete the form

SBA’s online program is free to use, though you will still need to pay the required fees if you’re interested in receiving an actual certificate through a third-party, since the SBA does not provide the certificate itself. A certificate is not required for federal government contracts — you only need to be officially certified and listed on their women-owned business database.

If you’re still unsure about the specifics of the SBA’s Women-Owned Small Business Federal Contracting Program, you can call (800) 827-5722 or email answerdesk@SBA.gov. To speak to a representative, be prepared to wait approximately 5-10 minutes for the automated message to end and depending on their call volume, you may have a longer wait.

Alternatively, you can apply to be certified by one of the four approved third-party certifying agencies. You will then need to provide proof of your certification through certify.SBA.gov, closely following the listed instructions. Each third-party agency has its own benefits and unique application process.

In the state of New York, you have additional options to certify your business as women-owned. There are a number of state-wide, local, and regional certification programs. Making use of these local businesswomen resources can supplement other actions, like reading the list of required documents and qualifications, to help women prepare for and increase their chances of gaining certification.

New York State Division of Minority and Women’s Business Development

New York’s Empire State Development program provides a medium through which minority and women-owned businesses apply for certification or recertification. Entrepreneurs can apply for five-year, renewable Woman Business Enterprise (WBE) or Minority Business Enterprise (MBE) through the New York State Contract System website, which also lists opportunities for support, training, and events.

New York State Unified Certification Program (NYSUCP)

This program helps New York’s disadvantaged business owners contract with the government or large enterprises. Entrepreneurs can apply for Disadvantaged Business Enterprise (DBE) certification — accepted by all entities throughout the state that accept U.S. Department of Transportation funding — through the New York State Unified Certification Program by filling in an application and personal net worth statement, and then submitting the documentation to one of the following:

• New York State Department of Transportation
• Metropolitan Transportation Authority
• Port Authority of New York and New Jersey
• Niagara Frontier Transportation Authority.

New York City DBE Programs

Another option for state certification is New York City certification, provided by the New York City Department of Small Business Services. The city spends up to $17 billion on goods and services each year, and wants to give a bigger piece of the pie to small businesses — which small businesses in the state can take advantage of through the MBE, WBE, Emerging Business Enterprise (EBE) or Locally-based Business Enterprise (LBE) certification programs.

To help entrepreneurs with the process, the NYC Department of Small Business Services also provides certification workshops and online or in-person classes about starting or scaling companies.

Women Presidents’ Educational Organization WBE Program

An affiliate of the Women’s Business Enterprise National Council, the Women’s Presidents’ Educational Organization (WPEO) certifies women-owned businesses throughout New York, North New Jersey, and South Connecticut. In addition to offering WBE certification, WPEO offers unique educational resources and business development opportunities for its certified members.

There are also a number of local and regional certification programs offered through cities. For example, Nassau County’s and Erie County/Buffalo’s DBE Programs, which put qualifying businesses on the city’s M/WBE database facilitating access to assistance and local services/programs. Find more information about regional certification opportunities here.

For the four national SBA-approved certifiers, it can take anywhere from 15 to 90 days from when the full documentation is received to process the certification. The state-wide certifications also follow a similar timeline.

Due to the somewhat unpredictable waiting times for certification, it is recommended that businesses plan far in advance. Obviously preparation varies depending on which certification you intend to apply for, but generally, the advice stands: gather required documents ahead of time, review legal and financial documents, and read the certifying agency’s standards, procedures, and requirements.

If your business is denied certification, it will be because you did not meet the eligibility requirements, failed to prove you control the company and run it independently, or did not provide the requested documents. If you prepare properly ahead of time you should not encounter any of these issues.

There are many benefits of becoming a Certified Women-Owned Business in New York, starting with the fact that you’ll have increased contracting opportunities with major corporations and the government.

As a certified WBE, you’ll also get access to unique resources like regional and national events, webinars training, and business expos, as well as inclusion on a database which includes thousands of certified women business enterprises.

Qualified WBEs can be eligible for the Women Owned Small Business (WOSB), a national certification recognized by the federal government.

Though the government predominantly does not have grants available for certified for-profit businesses, companies that create a product benefiting their whole industry can qualify for unique grants. Contact your state branch of the Small Business Development Center for more information on this subject.

If a woman-owned business certification is not right for you, there are other additional funding opportunities such as national grants, investors for women-owned businesses, loans, and more for women entrepreneurs.