What is NMSDC?
The National Minority Supplier Development Council (NMSDC) is the premier certifying body for minority-owned businesses in the United States. Founded in 1972, NMSDC connects certified minority business enterprises (MBEs) with Fortune 500 corporations and other major companies committed to supplier diversity.
NMSDC certification is widely considered the "gold standard" for MBE certification because it is recognized by virtually all major corporations with supplier diversity programs. Unlike state certifications that may only be valid within specific jurisdictions, NMSDC certification is accepted nationwide.
Key Fact
NMSDC member corporations collectively spend over $200 billion annually with certified diverse suppliers, making this certification one of the most valuable for accessing corporate contracts.
Eligibility Requirements
To qualify for NMSDC certification as a Minority Business Enterprise (MBE), your business must meet the following criteria:
Ownership
At least 51% of the business must be owned by one or more minority individuals.
Minority Classification
Owners must be African American, Hispanic American, Asian-Pacific American, Asian-Indian American, or Native American.
U.S. Presence
Business must be headquartered in the United States, and minority owners must be U.S. citizens or permanent residents.
Management Control
Minority owners must exercise control over daily business operations and strategic decision-making.
Who Qualifies as a Minority?
NMSDC recognizes the following ethnic groups for MBE certification:
- African American: Persons with origins in any of the Black racial groups of Africa
- Hispanic American: Persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin
- Asian-Pacific American: Persons with origins in Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, or the Northern Marianas
- Asian-Indian American: Persons with origins in India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands, or Nepal
- Native American: American Indians, Eskimos, Aleuts, or Native Hawaiians with tribal affiliation
Certification Costs
NMSDC certification fees are based on your company's annual gross revenue. The fee structure is designed to be accessible for smaller businesses while supporting NMSDC's operations.
| Annual Revenue | Annual Fee |
|---|---|
| Less than $1 million | $270 |
| $1 million - $10 million | $425 |
| $10 million - $50 million | $700 |
| Over $50 million | $1,700 |
Cost Comparison
While NMSDC certification has a fee, many state MBE certifications are free. However, NMSDC certification provides access to a much larger network of corporate buyers. Many businesses obtain both state and NMSDC certification to maximize opportunities.
Application Process
The NMSDC certification process involves several steps. Being well-prepared can significantly speed up your approval.
Find Your Regional Council
Locate the NMSDC regional council serving your business location. There are 23 regional councils across the country.
Create an Account
Register on NMSDC's online portal to begin the application process.
Complete the Application
Fill out the certification application with detailed information about your business, ownership, and operations.
Submit Documentation
Upload required documents including ownership proof, financial statements, and citizenship documentation.
Site Visit
A representative from your regional council will conduct a site visit to verify your business operations.
Committee Review
Your application is reviewed by the certification committee, which makes the final determination.
Required Documents
Gather these documents before starting your application:
- Articles of Incorporation or Organization
- Operating Agreement or Bylaws
- Proof of minority status (birth certificate, tribal documentation, etc.)
- Government-issued photo ID
- Proof of U.S. citizenship or permanent residency
- Stock certificates or membership ledger
- Two years of business and personal tax returns
- Current financial statements
- List of all owners, officers, and board members
Timeline
The typical NMSDC certification timeline is 60-90 days from application submission to certification decision. However, this can vary based on:
- Completeness of your application
- Availability for site visits
- Regional council workload
- Complexity of ownership structure
Speed Up Your Approval
Incomplete applications are the #1 cause of delays. Use our document checklist tool to ensure you have everything ready before applying.
Benefits of NMSDC Certification
Corporate Access
Connect with 1,400+ corporate members actively seeking diverse suppliers, including most Fortune 500 companies.
Networking Events
Access to NMSDC conferences, matchmaking events, and business opportunity fairs throughout the year.
Business Development
Training programs, mentorship opportunities, and resources to help grow your business capabilities.
Online Directory
Listing in the NMSDC supplier database, searchable by corporations looking for diverse vendors.
Financing Programs
Access to capital through NMSDC's Business Consortium Fund and partner lending programs.
Credibility
Third-party validation of your minority ownership status, recognized as the gold standard nationwide.
NMSDC Member Companies
NMSDC's corporate membership includes many of the world's largest and most recognized companies. Here are some companies that actively seek NMSDC-certified suppliers:
NMSDC Regional Councils
NMSDC operates through a network of 23 regional councils that manage the certification process and provide local support to certified MBEs. Your regional council will be your primary point of contact throughout the certification process.
Find your regional council by visiting nmsdc.org and entering your business location.
Frequently Asked Questions
What is the difference between NMSDC and state MBE certification?
NMSDC certification is a national, private certification recognized by Fortune 500 corporations. It has an annual fee ($270-$1,700) and is required to access most corporate supplier diversity programs.
State MBE certification is government-issued and typically free. It's required for state and local government contracts but generally not recognized by corporations.
Many businesses obtain both certifications to access the widest range of opportunities.
Can a 50/50 partnership qualify for NMSDC certification?
No. NMSDC requires at least 51% minority ownership. In a 50/50 partnership, neither partner has majority ownership, so the business would not qualify.
How long is NMSDC certification valid?
NMSDC certification is valid for one year. You'll need to renew annually by paying the certification fee and confirming that your business still meets eligibility requirements.
Can a franchise be NMSDC certified?
Yes, franchises can potentially qualify for NMSDC certification if the franchisee is at least 51% minority-owned and has operational control. However, the franchisor's control provisions in the franchise agreement will be carefully reviewed.
What if my application is denied?
If your application is denied, you'll receive a letter explaining the reasons. You may have the option to appeal the decision or reapply after addressing the issues identified. Common reasons for denial include incomplete documentation or ownership percentage issues.
Ready to Get NMSDC Certified?
Take our free certification quiz to confirm your eligibility and get a personalized document checklist.