Texas has two separate tracks for MBE certification, and mixing them up costs time. The state government uses its own system. Corporate buyers follow NMSDC. Knowing which one to pursue first depends entirely on where your customers are.
Which agency certifies MBEs in Texas
State track: Texas Comptroller's Statewide HUB Program
Texas does not use the generic "MBE" label at the state level. The equivalent program is called the Historically Underutilized Business (HUB) program, administered by the Texas Comptroller of Public Accounts. A HUB certification covers minority-owned, women-owned, service-disabled veteran-owned, and other economically disadvantaged businesses under one umbrella.
For state contracts, HUB is the credential that matters. The Centralized Master Bidders List (CMBL) is the procurement database where certified firms are visible to state agencies. You register there separately, but HUB certification is the piece that opens set-aside and goal-based opportunities.
Corporate track: Southwest Minority Supplier Development Council (SMSDC)
SMSDC is the NMSDC regional affiliate serving Texas and Oklahoma. It issues the national NMSDC MBE certificate, which Fortune 500 companies and other corporate NMSDC members recognize. SMSDC has offices in Dallas and Houston.
If your buyers are corporations running NMSDC-aligned supplier diversity programs, you need SMSDC certification. If they are state agencies, you need HUB. Most Texas-based minority businesses eventually need both.
Who qualifies
HUB (state program)
- At least 51% owned by a minority, woman, service-disabled veteran, or person with a disability who is a U.S. citizen or lawful permanent resident
- For minority ownership, "minority" is defined in Texas law as Asian Pacific American, Black American, Hispanic American, or Native American
- The owner must control day-to-day operations and hold the highest officer title
- The business must be for-profit and based in the United States
- No size cap is published for HUB, but the Comptroller can request financials to assess whether the owner's disadvantaged status is still economically meaningful
NMSDC/SMSDC (corporate program)
- At least 51% owned, operated, and controlled by one or more ethnic minorities who are U.S. citizens
- NMSDC defines ethnic minority as Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American
- The owner must be active in daily management
- The business must be for-profit
- NMSDC has no hard revenue cap, but the national council applies judgment to very large firms
Documents required in Texas
For HUB certification (Texas Comptroller):
- Completed HUB application (submitted through the Comptroller's online portal)
- Federal tax returns for the most recent two years (business and personal)
- Current year business bank statements (at least 3 months)
- Articles of incorporation or organization, or a partnership agreement
- Bylaws or operating agreement
- Stock ledger or membership interest schedule showing ownership percentages
- Government-issued photo ID for the qualifying owner(s)
- IRS EIN confirmation letter
- Business license or DBA filing if applicable
- Proof of U.S. citizenship or lawful permanent residency (passport, birth certificate, or naturalization certificate)
- Résumé for each qualifying owner demonstrating relevant industry experience
If you operate as a sole proprietor, you substitute the Schedule C from your personal return for the business return.
For SMSDC/NMSDC certification:
- Completed NMSDC application (submitted through SMSDC's portal)
- Three years of federal business tax returns
- Three years of personal tax returns for each owner with 10% or more equity
- Articles of incorporation or organization
- Operating agreement or bylaws
- Current stock ledger or cap table
- Three months of business bank statements
- Government-issued photo ID
- Proof of ethnicity (birth certificate, passport, tribal enrollment card, or similar document)
- Résumé for qualifying owner(s)
- Board of directors list or officer roster
SMSDC also conducts an in-person or virtual site visit as part of its review. HUB does not require a site visit for most initial applications.
Step-by-step process and timeline
HUB certification
- Create an account on the Texas Comptroller's vendor portal at comptroller.texas.gov
- Complete the HUB self-certification application online
- Upload all required documents
- The Comptroller's office reviews the file; they may issue a request for additional information (RFI) if documents are incomplete
- Approval or denial is issued in writing
Realistic timeline: 30 to 60 days from a complete submission. Applications with missing documents or complex ownership structures run closer to 90 days.
Cost: Free. Texas charges no fee for HUB certification.
HUB certification period: Three years. Renewal requires updated financials and a re-attestation of eligibility.
SMSDC/NMSDC certification
- Register at the SMSDC website (smsdc.org) and create a profile
- Pay the application fee (see below)
- Complete the online application and upload documents
- SMSDC staff reviews the file; requests for additional documents are common
- A site visit is scheduled (typically virtual for smaller firms)
- Certification committee decision is issued
Realistic timeline: 60 to 90 days from a complete application. Site visit scheduling is often the bottleneck.
Cost: SMSDC's annual certification fee is based on company revenue. As of 2024, fees range from approximately $400 to $1,250 per year. You pay annually; NMSDC certification must be renewed each year.
What contracts it opens in Texas
HUB program goals
Texas sets aspirational HUB participation goals by contract category under Texas Gov. Code § 2161. The current goals, published by the Comptroller, are:
- Heavy construction: 11.2% HUB subcontracting
- Building construction: 21.1%
- Special trade construction: 32.9%
- Professional services: 23.7%
- Other services: 26.0%
- Commodities: 21.1%
These are not hard set-asides. They are agency-level goals that trigger good-faith effort requirements for prime contractors, who must demonstrate they solicited HUB subcontractors. Being certified puts your firm in the pool that primes are required to solicit.
State agencies are also required to make a good-faith effort to include HUB vendors in procurement, and agencies track and report their HUB spend annually. The Texas comptroller publishes a statewide HUB report each fiscal year.
The CMBL database is where state buyers search for vendors. Registering there (separate from HUB certification but closely related) is what makes you discoverable. Both registrations are free.
What NMSDC/SMSDC certification opens
NMSDC-certified firms are listed in the national NMSDC database, which corporate members search when sourcing diverse suppliers. SMSDC has 300+ corporate members in Texas and the Southwest, including large energy companies, financial institutions, and retailers.
SMSDC also runs an annual business opportunity fair and match-making events. These are not just networking events; corporate members come with active procurement needs and use them to meet pre-vetted certified firms.
NMSDC certification does not unlock any government contracts by itself, but some federal prime contractors count it toward their subcontracting plan diversity goals.
How it stacks with federal certifications
HUB certification is Texas-specific. It does not transfer to other states or to the federal government.
NMSDC certification is nationally portable. A certificate issued by SMSDC is recognized by any NMSDC corporate member in the country.
Neither HUB nor NMSDC certification substitutes for federal 8(a) status, WOSB designation, or HUBZone certification from the SBA. Those federal programs have separate eligibility rules and application processes.
The overlap that matters: if you're Hispanic-owned or Black-owned, you may qualify for federal 8(a) as a socially and economically disadvantaged business, Texas HUB, and NMSDC certification simultaneously. Each credential opens a different buyer segment. The documents required for all three overlap heavily, which means the upfront prep work is front-loaded. Once you've assembled the file for one application, the marginal cost of applying to the others drops sharply.
Veterans who own at least 51% of their business have an additional option: the Texas Department of Veterans Affairs runs a Veteran-Owned Small Business (VOSB) certification that stacks on top of HUB for state contracts.
Getting the application done
The document assembly is the hard part. Most application delays trace back to missing pages in tax returns, outdated bank statements, or operating agreements that don't clearly spell out ownership percentages and control provisions.
If you'd rather not manage the paperwork, CertifyAll at /certifyall/ handles the application process end-to-end. You provide your business information and documents once; the service prepares and submits your applications for you, including follow-up on RFIs. It covers both state HUB and NMSDC applications for Texas-based businesses.
If you're doing it yourself, start with HUB. It's free, the timeline is shorter, and the document checklist overlaps significantly with what SMSDC will ask for later. Build your file once, then use it for both.
