By government definition, a minority-owned firm is one that is 51% owned by a U.S. citizen who is Black, Asian, Hispanic, Native American or women. The company can be any size, as long as it falls within the revenue limits which may vary. The company must also be a for-profit and physically located in the United States or its territories. Publicly owned businesses also qualify under the definition, but minorities must control more than 50 percent of the stock offerings.
The backbone of America’s economy is small business. Considering the growth of minority businesses, especially in the small business sector, when you choose to use a minority or disadvantaged vendor, you are helping the stability of the economy. Estimates show that minorities operated more than 5.8 million businesses in 2007, an increase of approximately 46 percent from 2002.
The federal government provides tax breaks for companies that choose minority or disadvantage business vendors. An additional tax incentive reduces tax liabilities for companies using minorities or disadvantaged companies that supply labor or services to a project funded with federal or state grants or loans.
The earliest federal tax incentives for companies using vendors owned by minorities and women passed in the 1970s, but the Small Business Act of 1953 used language encouraging the use of minority-owned companies in federal contract opportunities. In 2010 a gap between the funding of minority and nonminority businesses was identified. It was claimed that a disparity existed even after controlling for study factors, including the credit worthiness of both types of firms and the number of employees at both groups of companies.
The amount and type of federal tax benefits given to businesses using minority contractors depends on the language of the specific program. The Department of Commerce certifies businesses as "minority business enterprises" under the requirements specified in S.560.036(2). This certification qualifies minority-owned businesses for special employment consideration and allows companies using the certified firms in contracts an opportunity to apply for special tax incentives, when available under the contract.
SMaRT works with many companies who have made a decision to use minority and disadvantaged venders. Our extensive experience will help guide you through the process of working with a DBE or MBE company. We offer support services and supplement the technology staff at various organizations. Engagements include network management, email and collaboration support, warranty repair, help desk, asset management services along with product configuration and installations. In this era of “Doing more with less," SMaRT has been successful in saving government funds and reducing overhead.
SMaRT Technology Services, Inc. is a Chicago-based, privately held Information Technology consulting and services firm. Since our inception in 1998, our company has focused on developing and delivering technology support services mainly for educational institutions and other public sector agencies. Our certified technicians and consultants work out of our downtown Chicago headquarters.