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Business Certification— Fact Sheet
The Certified Business Enterprise (CBE) program, formerly Local, Small, and Disadvantaged Business Enterprise (LSDBE) program, was established in 1992 as the Equal Opportunity for Local, Small, and Disadvantaged Business Enterprises Act. The Act as amended in 1998 is now DC Law 12-268. The Sheltered Market Program, established under the Minority Contracting Act of 1976, effective March 29, 1977 (DC Law 1-95), was declared unconstitutional by the US Court of Appeals in O'Donnell Construction v. District of Columbia, 963 F. 2d 420 (DC Cir. 1992). As a result thereof, the sheltered market program for minority businesses was discontinued. The DC City Council enacted a new program entitled the Equal Opportunity for Local, Small, and Disadvantaged Business Enterprises Act in 1992. Businesses may be certified in the program as follows:
Local Business Enterprise (LBE)
A local business enterprise (LBE) is a business enterprise whose principal office is physically located in the District of Columbia, is licensed by the District, and is subject to District of Columbia taxes.
Resident Owned Business (ROB)
A resident owned business (ROB) is a local business enterprise owned by an individual, or a majority number of individuals, subject to personal income tax in the District of Columbia.
Joint Venture
A Joint Venture is an association of two or more businesses (including one Local Business Opportunity Commission (LBOC) certified firm with at least 51 percent ownership, management and control) temporarily formed to carry out a single business activity or project for profit in which they combine their property, capital, efforts, skills, and knowledge. The association is limited in scope and duration. The CBE venture partner must remain within the above small business size standards in order to qualify for approval, in accordance with DCMR Section 812.12.
Waiver Provisions
Applicants whose principal offices are not physically located within the District of Columbia may qualify for certification as SBE and DBE if they meet certain waiver provisions. The waiver provisions are based on an applicant's ability to demonstrate strong economic ties to the District of Columbia. These applicants must first satisfy the waiver provisions in order to be eligible for certification consideration. For more information, please contact the Certification Division staff at (202) 727-3900.
All information should be submitted to:
DC Department of Small and Local Business Development - Certification Division
441 Fourth Street, Suite 970N
Washington, DC 20001
Penalty Provisions
The Corporation Counsel may bring a civil action in the Superior Court of the District of Columbia against a business enterprise and the directors, officers, or principals that it reasonably believed have obtained certification by fraud or deceit or have furnished substantially inaccurate or incomplete ownership information to the Commission. A business enterprise or individual found guilty shall be subject to a civil penalty of not more than $100,000 in accordance with DC Law 12-268. | 
