Personal Net Worth Fact Sheet
The Office of Minority and Women’s Business Enterprises (OMWBE) certifies small businesses owned by socially and economically disadvantaged persons. An applicant’s economic disadvantaged status is verified by his or her personal net worth.
Personal net worth requirements
- The primary owner(s)’ personal net worth may not exceed $1.32 million.
- A person’s primary residence and the assets of the certified business do not count toward the personal net worth calculation.
- There are circumstances where an applicant’s personal net worth does not exceed $1.32 million, but the OMWBE determines the person is not economically disadvantaged. The agency would make this determination if the statement of personal net worth and supporting documents demonstrate the individual is able to accumulate substantial wealth. Factors include:
- Adjusted gross income over the last three years is over $350,000. The agency takes into consideration if this income was usual and likely to occur in the future, if the earnings were offset by losses, and if the income was reinvested in the firm or used to pay business taxes.
- The total fair market value of the owner's assets exceed $6 million.
- Other evidence that income is not indicative of lack of economic disadvantage.
Applicable federal and state rules
See the below federal and state rules for more information. They contain the same requirements.