Small Business Enterprise Eligibility

Learn about SBE certification requirements and benefits

What is a Small Business Enterprise?

A Small Business Enterprise (SBE) is a business that meets specific size and ownership criteria established by Caltrans. SBE certification provides access to contracting opportunities and support services designed to help small businesses grow and succeed.

Note: You don't need SBE certification to use CaltransBizConnect or apply for opportunities. However, some opportunities may require or prefer SBE-certified businesses.

Eligibility Requirements

1. Business Size

Your business must meet the Small Business Administration (SBA) size standards for your industry. Size standards are typically based on:

  • Number of employees, or
  • Average annual receipts

2. Ownership

The business must be:

  • At least 51% owned by one or more individuals who are U.S. citizens or lawful permanent residents
  • Independently owned and operated
  • Not dominant in its field of operation

3. Control

The qualifying owner(s) must:

  • Control the management and daily operations
  • Make independent business decisions
  • Possess the expertise and technical competence to perform the work

4. Principal Place of Business

Your business must have its principal place of business in California or perform a commercially useful function on Caltrans contracts.

Required Documentation

To apply for SBE certification, you'll typically need to provide:

  • Business license and formation documents
  • Federal Tax ID (EIN) documentation
  • Personal financial statements of owners
  • Business tax returns (typically last 3 years)
  • Organizational documents (articles of incorporation, bylaws, operating agreement)
  • Stock certificates or ownership agreements
  • Resumes of key personnel
  • Contractor's license (if applicable)

Application Process

1

Review Requirements

Ensure your business meets all eligibility criteria and gather required documentation.

2

Complete Application

Fill out the SBE certification application with detailed information about your business ownership, operations, and finances.

3

Submit Documentation

Upload all required supporting documents with your application.

4

Application Review

Caltrans will review your application and may request additional information or clarification.

5

Receive Decision

You'll receive notification of the certification decision, typically within 90 days of submitting a complete application.

Benefits of SBE Certification

  • Access to Set-Aside Contracts: Compete for contracts specifically designated for small businesses
  • Increased Visibility: Be listed in the Caltrans SBE directory
  • Networking Opportunities: Connect with prime contractors and other agencies
  • Technical Assistance: Access to business development and training programs
  • Competitive Advantage: Many opportunities prefer or require SBE certification

Need Help with Certification?

Our support services team can help you understand the requirements and guide you through the application process.

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