The certification process and small business goals in North Carolina are changing.
The former HUB Office is gone. Race- and gender-based certification programs are no longer the path businesses once used. Cities, agencies, and transportation partners are moving toward small-business programs that focus on the size, location, capacity, and eligibility of the company.
For contractors, this is the time to get certified.
As municipalities develop new small-business participation goals, they will need to look at the qualified small businesses available to perform the work on each project. That pool comes from certified companies.
If only a few concrete, electrical, hauling, plumbing, or landscaping companies are certified, then the available pool for those trades looks small. Future small-business participation goals for that work will be based on what is visible and available.
If qualified contractors do not get certified, they are not part of that picture. The agency cannot see that they are ready and able to perform the work. Which means smaller participation goals for all government opportunities.
Certification does not guarantee a contract, but it puts your company in the system and makes it easier for agencies, prime contractors, and project partners to find.
Certification also does not replace business readiness. Your operations, estimating, insurance, financials, team, and paperwork still need to support the work you pursue. But certification helps make your business visible as new opportunities and participation goals take shape.
There is no one definition of a small business
Many contractors ask, “What counts as a small business?” The answer depends on the program. There is no single rule that applies everywhere. One program may look at net income. Another may look at gross revenue, employee count, company location, ownership, personal net worth, or your specific industry code.
That is why a company may qualify for one certification and not another.
| Program | Size test | Local or ownership requirements |
|---|---|---|
| NC Small Business Enterprise | Net income of no more than $1.5 million after cost of goods sold and 100 or fewer employees | Headquartered in North Carolina and organized for profit |
| City of Charlotte SBE | Your company and affiliates must stay under 25% of the SBA size standard for your primary business | 51% qualifying ownership, owner personal net worth under $750,000, and significant Charlotte-area presence |
| City of Durham SLBE | Must meet the SBA size standard for your industry, averaged over the prior three years | Principal office in the Durham MSA, or a qualifying local branch office |
| RDU Small Business | Average annual gross revenue of $3 million or less over the prior five years | No local-location requirement listed for this certification |
| NCDOT SBE | Income under $1.5 million, excluding materials | Designed for smaller NCDOT construction opportunities |
The SBA size standards table is based on your company’s primary NAICS code. Some industries are measured by average annual receipts. Others are measured by employee count.
What changed statewide?
North Carolina eliminated the former HUB Office. The State is transitioning its Small Business Enterprise program to the Division of Purchase & Contract.
The old HUB certification no longer applies to State of North Carolina contracts. Contractors can still bid on State work, but should use the State’s current procurement systems and watch for NCSBE updates.
NC Small Business Enterprise certification
The State’s NCSBE certification is race- and gender-neutral. A company must meet all of these requirements:
- Be headquartered in North Carolina.
- Be organized for profit.
- Have 100 or fewer employees.
- Have annual net income of no more than $1.5 million after cost of goods sold is deducted.
To apply
- Register your company as a vendor in the State’s electronic Vendor Portal.
- Start an NCSBE certification request in eVP.
- Upload the required documents through the portal.
The State says a review can take up to 90 days after it receives a complete packet. Visit the State’s electronic Vendor Portal.
City of Charlotte Small Business Enterprise certification
The City of Charlotte now has a race- and gender-neutral Small Business Enterprise, or SBE, certification. A certified SBE is listed in the City’s vendor database and can receive information about contracting and subcontracting opportunities, workshops, networking, and other City resources. SBE participation may be encouraged or required on certain opportunities. Apply for City of Charlotte SBE certification.
Who qualifies
To be eligible, a company must meet these requirements:
- Be for profit.
- Be licensed and authorized to do business in North Carolina.
- Have one or more qualifying owners who own at least 51% of the company.
- Have qualifying owners with personal net worth of no more than $750,000.
The City does not count the value of the business itself, retirement accounts, or eligible equity in the owner’s primary residence toward that personal net worth limit. The owner must also actually manage and control the company. The City is looking for a real operating business, not a company that only passes work through to others.
What is Charlotte’s size limit?
Charlotte does not use one fixed revenue cap for every business. Your limit depends on your primary industry and the SBA size standard for that industry. Your business and all affiliates must be no larger than 25% of the applicable SBA size standard.
For example, if the SBA size standard for your primary NAICS code is $30 million in average annual receipts, the Charlotte SBE limit would be $7.5 million. That is only an example. Your actual threshold depends on your NAICS code.
The City reviews the average of your annual receipts over the previous three fiscal years and may also consider employee count. It includes your affiliates in that review.
What counts as a Charlotte-area business?
The City looks at whether the company has a significant business presence in the Charlotte Combined Statistical Area. That area includes:
- Anson, Cabarrus, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, and Union counties in North Carolina.
- Chester, Lancaster, and York counties in South Carolina.
How to apply
- Register as a supplier with the City of Charlotte.
- Complete the online SBE application through the City’s supplier diversity system.
- Upload the documents requested in the application.
City of Durham Small Local Business Enterprise certification
The City of Durham has a Small Local Business Enterprise, or SLBE, certification for businesses that want to pursue City work in construction and repair, goods, and other services. This is a local program. The City may set aside certain contracts for certified SLBEs only.
Who qualifies
A company must meet the SBA size standard for its industry based on the average of the prior three years; have the skills, experience, and licenses required for the work it seeks; and apply for specific areas of work where it can show it is qualified to perform.
The company must also meet one of these local-location requirements:
- Its principal office must be in Durham, Chatham, Orange, or Person County; or
- It must have had a branch, regional, or satellite office in one of those counties for at least one year before applying, and at least 25% of its full-time employees must live in those counties.
For Durham, a principal office means the place where most employees, principals, and managers work and where most accounting, financial, and payroll activities begin and are managed. SLBE certification lasts two years. Start the City of Durham SLBE certification process.
Raleigh-Durham Airport Authority Small Business certification
RDU has its own Small Business certification program for Airport Authority opportunities. The size test is straightforward: your company’s average annual gross revenue must be $3 million or less over the previous five years. This is gross revenue, not net income.
How to apply
If you already have an NCDOT SBE certification, submit proof of your current NCDOT SBE certification and your most recent federal business tax return. If you do not have an NCDOT SBE certification, submit the RDU Small Business application, the required affidavit, and complete federal business tax returns for the previous five years. Review the RDU Small Business Program.
NCDOT: understand the difference between SBE and DBE
NCDOT has two programs contractors need to understand. They are not the same.
NCDOT Small Business Enterprise certification
NCDOT’s SBE program is for smaller construction opportunities. To qualify, your company’s income must be less than $1.5 million, excluding materials.
NCDOT SBE opportunities may include hauling, erosion control, striping, landscaping, concrete, drainage, utilities, demolition, janitorial work, HVAC, electrical work, and other construction-related scopes. Typical SBE projects may cost up to $1 million.
To apply
- Create an NCID account.
- Submit the EBS access request form.
- Log into the NCDOT online certification portal.
- Select the SBE application and upload the required materials.
NCDOT notes that companies pursuing its SBE contracts do not need the same prequalification required for many other NCDOT contracts. Review NCDOT Small Business Programs.
NCDOT DBE reevaluation
DBE is a federal transportation certification. It is separate from NCDOT SBE.
The DBE program is under federal administrative review. NCDOT has suspended DBE contract goals and the counting of DBE participation toward goals while it prepares to reevaluate firms. NCDOT expects that reevaluation process to begin later in 2026, but there is no announced restart date for DBE goals.
Under the current rule, every DBE business owner must show individualized evidence of social and economic disadvantage. Race and gender presumptions can no longer be used. The owner will also need to complete a Personal Narrative describing specific experiences that created barriers in education, employment, or business, when those barriers happened, and how they caused economic harm. NCDOT also requires a Personal Net Worth statement with supporting records. Read NCDOT’s DBE reevaluation guidance.
Start with the certifications that fit your company
- Pursuing State opportunities? Review NCSBE.
- Pursuing City of Charlotte work? Start the Charlotte SBE process.
- Based in the Durham area and pursuing City work? Review Durham SLBE.
- Interested in Airport Authority work? Review RDU’s Small Business certification.
- Pursuing smaller NCDOT projects? Review NCDOT SBE.
- Already DBE-certified? Begin organizing your reevaluation documents now.
Do not wait until a bid is due. A company may need time to gather tax returns, licenses, financial records, insurance, registrations, and other documents. The businesses that are ready when opportunities come out will have more options.