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Minnesota TG, ED and Veteran-Owned Small Business Program: Status and What to Do

Where
Minnesota Small Business Certification Portal
Status
Active. Minnesota still certifies Minnesota-based small businesses as Targeted Group, Economically Disadvantaged or Veteran-Owned. State law allows up to a 12% bid preference and direct awards up to $100,000.
Contact
procurement.equity@state.mn.us
Last checked
2026-10-10

See 22 open bids in Minnesota →

What it is

The Office of Equity in Procurement (OEP) in the Minnesota Department of Administration certifies Minnesota-based small businesses in three groups: Targeted Group (TG), Economically Disadvantaged (ED) and Veteran-Owned (VO). Certified firms can get a price preference on state bids, direct awards without competition on smaller contracts, and count toward subcontracting goals on construction and professional or technical contracts. State law is Minnesota Statutes section 16C.16.

Who qualifies

  • Minnesota-based small business. The principal place of business must be in Minnesota. Out-of-state firms are not eligible.
  • Annual gross receipts of $30.72 million or less (three-year average), and the state's industry size standards.
  • Majority owners must be U.S. citizens or lawful permanent residents. Personal net worth must be below $2.047 million.
  • TG: at least 51% owned and operated by women, persons with a substantial physical disability, or specific minorities. The commissioner decides which groups count for which purchasing categories.
  • ED: the business is located in, or the owner lives in, an economically disadvantaged area of Minnesota (for example, a federal labor surplus area or a low-income county).
  • VO: at least 51% owned by a veteran or service-disabled veteran, as verified by the Minnesota Department of Veterans Affairs, and operated and controlled by that owner. SBA VetCert firms are also eligible.
  • The official pages do not mention reciprocity with other states.

What it means for your bids

  • State law allows up to a 12% preference for TG, ED and VO firms. The VO preference must be at least as large as any other group's.
  • Purchasing Policy 35 applies only the largest preference you qualify for (they do not stack) and applies it to the first $2,000,000 of your response.
  • The state may award contracts for goods, services or construction directly to a certified firm, without a competitive solicitation, up to $100,000 including extensions.
  • On construction and professional or technical contracts, the state can set goals that require primes to subcontract part of the work to certified small businesses.

How to get certified

  1. Apply on the Minnesota Small Business Certification Portal: https://sbcp.mn.gov/. Choose the State (TG/ED/VO) program.
  2. Complete the Small Business Program Application and upload the required documents. Eligibility table: https://sbcp.mn.gov/instructions/about-eligibility
  3. Veterans: OEP checks veteran status with the Minnesota Department of Veterans Affairs.
  4. Certification is reviewed every year.
  5. The official pages do not state a fee or a processing time. The portal links to the state's APEX Accelerator for help completing the application.

Watch out for

  • Some OEP web pages still say "up to 6%." The statute and Purchasing Policy 35 say up to 12%. Check the bid document.
  • In 2025 the Legislature amended section 16C.16 (Laws 2025, chapter 39). The law no longer ties the small business size standard to federal transportation rules (49 CFR); the commissioner sets it. The 12% cap and $100,000 direct-award limit stayed the same.
  • The 2025 Joint Disparity Study (final report July 2025) found continued disparities and suggested expanding efforts to small businesses. The state has not posted program changes based on it.
  • The CERT program (MBE, WBE and SBE for Hennepin County, Ramsey County, Saint Paul and Minneapolis) is a separate city and county program.
  • Federal DBE (MnUCP, for MnDOT and airport work) is a separate program.
  • Questions: procurement.equity@state.mn.us.

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Common questions

Is the Minnesota Small Business Certification Program (Targeted Group, Economically Disadvantaged, Veteran-Owned) still active?

Minnesota still certifies Minnesota-based small businesses as Targeted Group, Economically Disadvantaged or Veteran-Owned. State law allows up to a 12% bid preference and direct awards up to $100,000.

Where do I check my certification status?

Minnesota Small Business Certification Portal: https://sbcp.mn.gov/

Sources

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.

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