Maryland MBE, Small Business Reserve and VSBE: Status and What to Do

What it is

The Office of Minority Business Enterprise (OMBE), now in the Department of Social and Economic Mobility (DoSEM), certifies Minority Business Enterprises (MBEs). MBE status counts toward contract goals under a 29% statewide aspirational goal. The Office of Small, Minority and Women Business Affairs (OSBA) runs the Small Business Reserve (SBR), a race- and gender-neutral set-aside for Certified Small Businesses, and the Veteran-Owned Small Business Enterprise (VSBE) program, which has a 3% goal.

What changed

• October 1, 2025: OMBE moved from MDOT into the new DoSEM. The Procurement Reform Act of 2025 (HB 500) took effect. Contracts of $1 million or less must be reserved for Certified Small Businesses unless an exception applies. The old range was $50,000 to $500,000.
• September 2025: VSBE certification now lasts three years. OSBA says "Small Business Reserve vendor" became "Certified Small Business" with no change in eligibility.
• January 1, 2026: the MBE personal net worth cap rose to $2,192,035.
• April 14, 2026: the Governor signed HB 1578 (Chapter 82), effective June 1, 2026. It extends MBE from July 1, 2026 (set by a one-year 2025 extension) to July 1, 2031. New findings from the 2025 disparity study say race-neutral efforts will be used "to the maximum extent feasible."

Who qualifies

• MBE: at least 51% owned and controlled by minorities, women or people with disabilities. Each owner's personal net worth must be under $2,192,035. The firm must meet SBA size standards for its NAICS codes.
• MBE out-of-state firms: DoSEM says you must be certified and in good standing in your state of original jurisdiction before applying, and in good standing with Maryland SDAT.
• Certified Small Business: for-profit, independently owned, not a subsidiary or broker, and under industry limits. Examples: service, 100 employees and $10 million average sales; construction, 50 employees and $7 million.
• VSBE: meets SBA size standards and is at least 51% owned and controlled by veterans.
• The SBR and VSBE pages we read do not say whether out-of-state firms qualify.

What it means for your bids

• MBE goals are set contract by contract. Only work by a certified MBE counts.
• SBR contracts go only to firms in the Certified Small Business Directory, and must be paid within 15 days of a proper invoice (down from 30).
• VSBE firms must be certified when the bid is submitted. Errors on VSBE forms can now be corrected after notice.
• Agencies may now adjust MBE and VSBE goals before or after award.

How to get certified

1. MBE: register with SDAT, then apply in the DoSEM Vendor Management System: https://marylandmdbe.gob2g.com/. DoSEM says it is free and takes about 2-3 months, including an interview and site visit.
2. SBR: register in eMMA (https://emma.maryland.gov) and self-certify as a small business. It is free.
3. VSBE: register in eMMA, verify veteran status through the Maryland Department of Veterans and Military Families or SBA VetCert, then submit the VSBE application in eMMA. It is free and lasts three years.

Watch out for

• MBE term is unclear. DoSEM says certification is valid three years, but an MDOT forms page still lists a yearly Declaration of Eligibility. Ask OMBE.
• The Veteran-Owned Small Business Reserve created by HB 500 was listed as "Coming Soon" in November 2025.
• Federal DBE is a separate program; DoSEM says federal DBE changes do not affect MBE certification.
• DoSEM says its MBE certificate is used by state agencies and most counties, cities and towns. Check each local buyer's rules.
• Free help: OMBE 410-865-1269; OSBA 410-697-9600 or 877-558-0998.

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Sources

• economicmobility.prod.maryland.gov/business-certifications-programs/maryland-minority-business-enterpris
• www.mdot.maryland.gov/MBE_DOCS/2026_MBE_Only_Certification_Overview.pdf
• www.mdot.maryland.gov/tso/pages/index.aspx?pageid=90
• mdot.maryland.gov/tso/pages/Index.aspx?PageId=91
• www.mdot.maryland.gov/tso/pages/index.aspx?pageid=96
• mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb1578?ys=2026rs
• mgaleg.maryland.gov/2026RS/chapters_noln/Ch_82_hb1578T.pdf
• mgaleg.maryland.gov/2025RS/fnotes/bil_0009/sb0829.pdf
• msa.maryland.gov/msa/mdmanual/23dsem/html/dsemf.html
• economicmobility.maryland.gov/Documents/OMBE-Initial-Notice-USDOT-IFR.pdf
• economicmobility.maryland.gov/Documents/OMBE-Initial-Out-of-State-Notice-USDOT-IFR.pdf
• gomdsmallbiz.maryland.gov/Reports/FY2025_Annual_Report.pdf
• news.maryland.gov/dgs/2025/10/01/marylands-landmark-procurement-reform-act-takes-effect
• procurement.maryland.gov/wp-content/uploads/sites/12/2024/11/FINAL-BP-Small-Business-Reserve-I
• gomdsmallbiz.maryland.gov/Pages/VSBE-Program.aspx
• gomdsmallbiz.maryland.gov/Documents/2025%20T.I.P.S.%20Small%20Business%20Webinars/Nov%204%20202
• gomdsmallbiz.maryland.gov/Documents/2025%20VSBE%20SBR%20Certifications%20Workshop/Feb%2014%2020
• gomdsmallbiz.maryland.gov/pages/mbe-program.aspx

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.