National Minority Supplier Development Council

minority_supplierThe National Minority Supplier Development Council is an organization designed to help Asian, Hispanic, Black and Native American businesses by helping them generate business through connections with pre-screened members. The NMSDC is basically a group of minority-owned member companies which are matched with a large network of corporate members who want to buy services and products from minority owned businesses. This is increasingly important these days are there are good reasons for a company to choose supplier diversity. The MNSDC matches its more than 12,000 certified minority-owned businesses to its network of over 1750 corporate purchasing members supported by 23 affiliate regional councils around the country.

The National Minority Supplier Development Council has been operating for over 40 years to meet the needs of Americas largest businesses (Fortune 500 companies, universities, hospitals, and government organizations), and has played its part in changing attitudes to the use of minority suppliers, some of whom have grown substantially.
The federal government, large corporations and state agencies are all looking to transact with minority-owned companies, and many departments and companies have specific goals and requirements to award contracts to minority-owned suppliers. There are several reasons for this – firstly the government has an obligation to spend tax revenue on contracts with all firms within a state, not just a favored few. And secondly it just makes business sense that if a company is marketing to minorities, then it should also be making purchases from minority owned businesses as well.

To meet these goals and targets, public and private sector companies typically look for minority-owned suppliers. One of the best places to look is by using a program with pre-screened minority companies with formal certification processes. This gives opportunities to a certified business to get access to a lucrative reduced-competition public contract.

Suppliers are not restricted to supplying products only; services such as property damage cleanup can also  be sourced and often smaller businesses such as Restoration Aces in Philadelphia providing water damage restoration are not too small to apply for certification.

For purposes of NMSDC’s program, a minority group member is an individual who is a U.S. citizen with at least one quarter of the following:
A U.S. citizen whose origins are from India, Pakistan and Bangladesh, a U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas, a U.S. citizen who is of African descent, a U.S. citizen of true-born Hispanic heritage, from any of the Spanish-speaking areas of the following regions: Mexico, Central America, South America and the Caribbean Basin only, Brazilians (Afro-Brazilian, indigenous/Indian only) shall be listed under Hispanic designation for review and certification purposes, a person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental United States and proof can be provided through a Native American Blood Degree Certificate (i.e., tribal registry letter, tribal roll register number).

Getting Certified
To begin the certification process, you will need to contact the regional affiliate closest to your headquarters.

How to get started:

Review certification criteria below to ensure that your business qualifies.
Gather required documentation. Documentation requirements are listed directly below.
Complete the online application in full. You’ll have as long as you need to complete the application and can save each session as you go.
Application fee must be paid online via credit card.
Upload the required documentation via the online certification/recertification application.
Schedule site visit and interview. These will be performed by a NMSDC Certification Specialist.
Wait for final approval from both Committee and Board Members.

Criteria for Certification:
United States citizens.
Minority businesses must be at least 51% minority-owned operated and controlled. For the purposes of NMSDC’s program, a minority group member is an individual who is at least 25% Asian, Black, Hispanic or Native American. Minority eligibility is established via a combination of screenings, interviews and site visits. Ownership, in the case of a publicly-owned business, means that at least 51% of the stock is owned by one or more minority group members.
Must be a profit enterprise and physically located in the U. S. or its trust territories.
Management and daily operations must be exercised by the minority ownership member(s).
*Additional minor eligibility criteria.
To learn more about the standardization process and some of the benefits of MBE certification, go to the link directly below.

Required documentation:
(documents will vary by business types – below is a sample for corporations)
The History of Business
Certificate of Incorporation
Articles of Incorporation
Stock Certificates and Stock Ledger
Minutes to Board of Director’s meetings as well as Shareholder’s meetings
Bylaws (executed and attested) and Amendments (if applicable)
All agreement(s) pertaining to ownership, operation, and control of the business
Business cards that list appropriate corporate titles, copies of resumes, copy of driver’s licenses and proof of US Citizenship (Birth certificates or U.S. Passports only) for all Principals
Corporate Bank Resolution Agreement(s) to include Bank Signature Card(s)
Business Lease Agreement(s) (and Security Deeds if home-based)
Proof of general liability insurance and in some cases bonding
Copies of the businesses’ cancelled checks

The application process:

The Certification process can take up to 90 days.
Before you begin the online application, you will need to register on our site.
When completing the application, feel free to take as long as needed.
Your information will be saved for your next session and is completely confidential.
The processing of your application will begin when payment is received.
Application and documents are reviewed for completeness.
The Certification Committee meets regularly to review applications for MBE Certification.
The Certification Committee must approve the application before it can be submitted to the Board for final approval.
The Board will review the Certification Committee’s recommendation and make the final decision.
If your application is approved, you will be notified via e-mail and postal mail.
If the Board rejects your application, you may submit a letter of appeal.

Standardization process:

Certification Policy and Procedures Manual is firmly adhered to by its 23 Regional Affiliates for the certification of minority-owned businesses.

Certified MBEs will be recognized by all national corporate members of the NMSDC Network as nationally certified. This means that MBEs will be able to subscribe to a Regional Affiliate and enjoy fee-based, value-added services and support that are unique to their specific market.

NMSDC’s rigorous certification process requires that minority businesses in our Network are at least 51% minority-owned, operated and controlled. Eligibility is established by conducting a series of screenings, interviews and site visits. This distinguishes NMSDC from other organizations or entities who publish directories allowing for “self-certification” as their standard.

Stringent standardization also identifies bona fide minority businesses, helping purchasing agents report expenditures as well as vendor utilization rates. These procedures help measure overall performance and progress.