California Small Business and DVBE Certification: Status and What to Do

What it is

The Department of General Services (DGS) Office of Small Business and DVBE Services (OSDS) certifies Small Businesses (SB), Microbusinesses (MB), Small Businesses for public works (SB-PW) and Disabled Veteran Business Enterprises (DVBE). Agencies use them to meet a 25% SB goal and a 3% DVBE goal, to apply bid preferences, and to buy directly through the SB/DVBE Option. California does not run a state minority- or woman-owned certification. DGS points those firms to federal DBE and the utility Supplier Clearing House.

What changed

• March 18, 2026: the SB/DVBE Option limit for public works rose to $484,000 from $461,000.
• September 25, 2026: DGS filed revised SB/DVBE rules, effective January 1, 2027. Per DGS, they extend SB, SB-PW and DVBE certification from 24 to 36 months, let agencies set aside some competitive bids ($250,000 to $3.5 million in the draft text) for SBs and microbusinesses, and raise the gross receipts maximums. DGS told commenters that firms certified at adoption will have certifications extended to 36 months.

Who qualifies

• SB: independently owned, not dominant in its field, principal office in California, owners or officers domiciled in California. Including affiliates, 100 or fewer employees and average gross receipts of $19 million or less over 3 tax years, or a manufacturer with 100 or fewer employees.
• Microbusiness: an SB with $6 million or less, or a manufacturer with 25 or fewer employees. Assigned automatically.
• SB-PW: same ownership rules, 200 or fewer employees and $46 million or less, for public works.
• DVBE: at least 51% owned (LLCs 100%) by veterans with a service-connected disability of at least 10% who live in California and manage daily operations. Home office in the U.S. No size limit is listed.
• Out-of-state firms cannot get SB or SB-PW. DGS's "Reciprocity Partners" are California local agencies that accept state certification, not other states.

What it means for your bids

• 5% bid preference for SBs against non-small firms. A non-small prime that subcontracts at least 25% to SBs can also get 5%.
• DVBE incentive of up to 5% where a contract includes it.
• SB/DVBE Option: direct awards from $5,000.01 to $249,999.99 (goods, services, IT) or up to $484,000 (public works), after quotes from at least two SBs or two DVBEs.
• Primes must use the DVBE subcontractors they list unless the state approves a substitution (per LAO).

How to get certified

1. Register in Cal eProcure: https://caleprocure.ca.gov/pages/CertificationProcess/sbdvbe-1.aspx
2. Apply and upload documents: https://caleprocure.ca.gov/pages/sbdvbe-index.aspx. DVBE applicants send 3 years of tax returns and a VA or DoD disability letter dated within 6 months.
3. Cost: CalVet says there is no cost to apply.
4. Certifications are typically issued for 2 years now, and 36 months from January 1, 2027.
5. DGS does not state a processing time. It offers an expedite procedure if you have a bid opportunity.

Watch out for

• Caltrans's page still shows older limits ($18 million SB, $43 million SB-PW). Use DGS's current sheet (form PD3F, revised 3-26).
• Self-identifying as minority-, woman- or LGBTQ-owned in Cal eProcure (from AB 2019) is not certification.
• Federal DBE (highway and transit work) is a separate program.
• Cities, counties and utilities may run their own programs.
• Free help: OSDS at Certification@dgs.ca.gov or 916-375-4940. Login help: FI$Cal Service Center, 855-421-6355.

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Sources

• www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Ap
• dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/
• www.dgs.ca.gov/-/media/Divisions/PD/OSDS/Certification/SB/SB_SB-PW_CertificationRequ
• www.dgs.ca.gov/-/media/Divisions/PD/OSDS/Outreach/Resources/2026/Assist_SB_DVBE_wCon
• www.dgs.ca.gov/-/media/Divisions/PD/OSDS/Certification/Notice-of-Rulemaking/Express-
• www.dgs.ca.gov/-/media/Divisions/PD/OSDS/Certification/Notice-of-Rulemaking/FSORAB-2
• dgs.ca.gov/PD-OSDS
• www.dgs.ca.gov/PD-Supplier-Diversity-Program
• www.dgs.ca.gov/-/media/Divisions/PD/OSDS/Certification/OSDS-Services/In-Focus---Legi
• www.calvet.ca.gov/VetServices/Pages/Get-Certified.aspx
• dot.ca.gov/programs/civil-rights/dvbe/sb-dvbe-eligibility
• www.lao.ca.gov/Publications/Report/5095

FindMyBids isn't affiliated with any certifying agency, and this isn't legal advice. Status can change quickly with court orders and new laws, so confirm with the program office before you rely on it.