D.C. Mun. Regs. r. 27-804

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-804 - DISADVANTAGED BUSINESS ENTERPRISE; ADDITIONAL REQUIREMENTS

804.1

An applicant seeking certification as a disadvantaged business enterprise ("DBE") shall demonstrate to the Department that the individuals representing more than fifty percent (50%) of those who own, operate, and control the business enterprise are:

(a) Socially disadvantaged because those individuals have reason to believe that they have faced instances of prejudice or bias without regard to their qualities as individuals due to their identity as members of a group, as evidenced by documentation that the individuals seeking socially disadvantaged status as members of a group hold themselves out as members of that group; and

(b) Economically disadvantaged because of diminished opportunities (specifically, lack of access to credit and capital as compared to others in the same line of business) related to their status as socially disadvantaged as described in paragraph (a) of this subsection, that have precluded these individuals from successfully competing in the open marketplace, as evidenced by documentation of the following:

(1) The personal financial statement of the individuals seeking economically disadvantaged status; and

(2) The financial condition of the individuals or of business enterprises the individuals own or operate.

804.2

An individual seeking DBE certification for a business enterprise shall provide the Department with a narrative describing how the owner or owners of more than fifty percent (50%) of the business enterprise are socially and economically disadvantaged as described in this section. The individual may also provide the Department with the personal financial statement of the owner or owners claiming to be economically disadvantaged, demonstrating that the personal net worth of each owner, excluding the value of his or her primary residence and the value of his or her ownership interest in the certified business enterprise ("CBE"), is less than one million dollars ($ 1 million).

804.3

An individual seeking DBE certification pursuant to Section 2333(b) of the Act (D.C. Official Code § 2-218.33(b)) for a business enterprise must demonstrate that the business enterprise's annualized gross receipts for the tax year prior to seeking certification do not exceed the limits enumerated in § 803.1, as evidenced by District and federal tax returns filed.

D.C. Mun. Regs. r. 27-804

Final Rulemaking published at 39 DCR 9052 (December 4, 1992); as amended by Final Rulemaking published at 56 DCR 8439 (October 23, 2009), incorporating by reference text of Proposed Rulemaking published at 56 DCR 5622, 5627 (July 10, 2009); amended by Final Rulemaking published at 70 DCR 10970 (8/11/2023)

Authority: Section 2372 of the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005 (Act), effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.72 )(2009 Supp.) and Mayor's Order 2009-58, dated April 15, 2009.