New York Codes, Rules and Regulations › Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT › Chapter XIV - Division of Minority and Women's Business Development › Part 144 - Statewide Certification Program › Section 144.2 - Certification criteria

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In
				order to be certified as a minority or women-owned business enterprise, a
				business enterprise must be owned, operated, and controlled by one or more
				minority group members or women, must be independent of other business
				entities, and must meet such other certification criteria as are described
				herein.
(b) Ownership. In order to
				establish real, substantial, and continuing majority ownership of a business
				enterprise by one or more minority group members or women, and to ensure that
				the benefits of certification accrue to such minority group members or women,
				each application to certify a business enterprise as a minority or women-owned
				business enterprise must meet the following criteria:
(1) Fifty-one percent ownership interest.
				Minority group members and women relied upon for certification must own at
				least fifty-one (51) percent of the business enterprise for which certification
				is sought. Such minority group members or women must be United States citizens
				or permanent resident aliens.
(2)
				Capital contribution. Minority group members and women relied upon for
				certification must demonstrate a capital contribution to the business
				enterprise for which certification is sought proportionate to their equity
				interest therein.
(i) Sources of a capital
				contribution. Minority group members and women may demonstrate a capital
				contribution by providing documentary evidence of, for example and without
				limitation, one or more of the following:
1.
				Money;
2. Property;
3. Equipment; or
4. Expertise, provided that the contribution
				of such expertise must be uncompensated, the expertise must be specialized and
				directly applicable to one or more critical aspects of the operation of the
				business enterprise, and a reasonable assessment of the fair market value of
				the expertise must be clearly documented.
(3) Risks and profits. Minority group members
				and women relied upon for certification must share in the risks and profits of
				the business enterprise for which certification is sought in proportion to
				their equity interest therein. In determining whether the profits of the
				business enterprise are shared proportionately with minority group members or
				women, the division may consider, for example and without limitation, means by
				which the proceeds of the business enterprise are conveyed to individuals or
				entities.
(4) Customary incidents
				of ownership. Minority group members and women relied upon for certification
				must not be encumbered in their ability to realize the benefits of ownership of
				the business enterprise for which certification is sought, or subject to undue
				restrictions against alienating such ownership interests.
(5) Pro forma ownership. Ownership interests
				in a business enterprise may not be allocated to minority group members or
				women, either through business formation or the transfer of ownership
				interests, solely for the purpose of securing certification of such business
				enterprise as a minority or women-owned business enterprise. Where a minority
				group member or woman relied upon for certification obtains his or her
				ownership interest in a business enterprise through a transfer from another
				person, such minority group member or woman must demonstrate that such transfer
				was supported by reasonable consideration, and must meet all other
				certification criteria described herein.