North Carolina's state HUB program is gone
If you've researched MBE certification in North Carolina before, you probably found two paths: the state's HUB (Historically Underutilized Business) program and NMSDC certification through the regional affiliate. Only one of those still exists.
North Carolina's 2026 state budget (Session Law 2026-41, signed July 7, 2026) eliminated the Office for Historically Underutilized Businesses and repealed the statutes behind the HUB program, including the state's 10% minority-participation goal on public building projects. There is no active state-level MBE certification in North Carolina right now. The North Carolina Small Business Enterprise (NCSBE) program survives, moved to the Department of Administration's Division of Purchase & Contract, but it's a size-based, race- and gender-neutral program, not a minority business certification.
That leaves NMSDC certification through the Carolina Minority Supplier Development Council (CMSDC), the regional affiliate serving North and South Carolina, as the certification that actually applies if you're a minority business owner in North Carolina today. NMSDC certification is recognized by Fortune 500 corporate supplier diversity programs nationwide and never depended on the state program in the first place.
If you're pursuing government contracts specifically, look federally instead of at the state: 8(a) certification and DBE certification (for NCDOT highway work) both still function exactly as before, since neither depends on North Carolina's state budget.
CMSDC/NMSDC certification: who qualifies
CMSDC follows the national NMSDC standard:
- Ownership: At least 51% owned by one or more minority individuals
- Control: Minority owner(s) must manage daily operations and hold the highest officer title
- Ethnicity: Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American
- Citizenship: U.S. citizens only (not permanent residents) for the primary owner
- Size: For most CMSDC members, there is no hard revenue cap, though some corporate programs apply their own thresholds
NMSDC certification does not require a physical North Carolina location, but CMSDC serves the region and a local presence makes sense.
Documents required
Both programs require substantial documentation. Gather these before starting either application.
Business formation and ownership documents: - Articles of incorporation, articles of organization, or DBA registration - Operating agreement or bylaws (show ownership percentages explicitly) - Stock certificates or membership certificates with full ledger - Most recent federal business tax returns (typically 2-3 years) - Business bank account statements (3-6 months)
Proof of minority status: - Birth certificate, passport, or Certificate of Naturalization showing national origin - Some applicants submit tribal enrollment cards (for Native American status)
Control documentation: - Signed lease or deed for business premises - Licenses and permits in the owner's name - Resumes of all owners and key managers - Copy of any loan documents (to verify no third-party control provisions)
For CMSDC: - NMSDC standard application (submitted through the CMSDC portal) - A personal financial statement for the primary owner - Site visit or virtual interview is required; CMSDC staff confirm operational control firsthand
Step-by-step application process
CMSDC (NMSDC)
- Check eligibility: Review NMSDC standards at nmsdc.org and CMSDC's site at cmsdc.org.
- Submit online application: CMSDC uses the national NMSDC application portal. Create an account and complete all sections.
- Upload documents: The portal has a document checklist; upload everything before submitting.
- Pay the fee: CMSDC charges an annual certification fee on a sliding scale based on annual revenue. As of 2024, fees range from approximately $350 for businesses under $1M in revenue to $1,250 for businesses over $10M. Confirm current rates directly with CMSDC.
- Business review: A CMSDC analyst reviews the file. Most applicants are contacted for a virtual or in-person site visit within 30-45 days of submission.
- Certification committee review: CMSDC's certification committee makes the final decision.
- Certificate issued: Valid for one year; annual renewal required.
Timeline: 60-120 days is typical at CMSDC. Complex ownership structures take longer.
Cost: $350-$1,250 annually, depending on revenue.
What replaced the state contract advantage
Before its elimination, HUB certification came with a statutory goal: state agencies and universities had to set aspirational HUB participation targets on construction, goods, and services contracts, backed by good-faith-effort requirements. That mechanism is gone along with the statutes that created it. There's no ownership-based goal or preference on North Carolina state contracts anymore.
NC Department of Transportation (NCDOT) still runs its own DBE program for federally funded highway, transit, and airport contracts, which is unaffected because it operates under federal regulation (49 CFR Part 26), not the state statutes that were repealed. If you're pursuing NCDOT highway work, DBE certification is the credential that still matters there.
For general state agency, UNC System, and community college contracts, register as a vendor in the state's electronic Vendor Portal (evp.nc.gov) and consider the NC Small Business Enterprise (NCSBE) track if you qualify on size. It won't get you ownership-based preference, but it's what North Carolina currently offers.
What contracts does CMSDC certification open?
CMSDC certification is recognized by Fortune 500 companies through the national NMSDC network. It does not directly affect state government procurement, but it opens doors with private-sector buyers that run formal supplier diversity programs.
Major corporations headquartered or with large operations in North Carolina that actively use NMSDC-certified suppliers include Bank of America, Duke Energy, Lowes, and Honeywell. All four maintain active supplier diversity programs and source through NMSDC affiliates.
NMSDC certification also enables access to NMSDC national conferences, corporate matchmaking events, and CMSDC's local meet-the-buyer events in Charlotte and the Research Triangle.
How CMSDC stacks with federal certifications
CMSDC certification and federal certifications (8(a), WOSB, SDVOSB, HUBZone) serve different buyers and require separate applications. They do not substitute for each other.
NCDOT's DBE (Disadvantaged Business Enterprise) program for federally funded highway contracts is administered under federal regulations (49 CFR Part 26), unaffected by the state HUB program's elimination. If you're pursuing NCDOT highway work specifically, DBE certification through NCDOT's Office of Civil Rights is what you need.
In practice, many minority-owned businesses in North Carolina carry both: NMSDC/CMSDC for corporate programs, and a federal certification (often WOSB or 8(a)) for federal work. There is no conflict between them, and each certification opens a distinct market segment. With the state HUB program gone, this two-certification combination now covers what's actually available.
Getting the application done
The CMSDC application is document-heavy and requires careful attention to how ownership and control are described. Common rejection reasons include operating agreements that don't clearly establish the minority owner's control, tax returns that don't match the stated ownership structure, and incomplete document uploads.
If you'd rather hand off the application work, CertifyAll at /certifyall/ handles CMSDC and federal certification applications for you. You provide the documents once; CertifyAll prepares the submissions, follows up with the certifying bodies, and tracks status through to approval.
