# 40 CFR § 33.203: How does an entity qualify as an MBE or WBE under EPA's 10% statute? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-40-33.203 ## Section - **Citation:** 40 CFR § 33.203 - **Heading:** How does an entity qualify as an MBE or WBE under EPA's 10% statute? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 40—Protection of Environment > CHAPTER I—ENVIRONMENTAL PROTECTION AGENCY > SUBCHAPTER B—GRANTS AND OTHER FEDERAL ASSISTANCE > PART 33—PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PROGRAMS > Subpart B—Certification ## Text To qualify as an MBE or WBE under EPA's 10% statute, an entity must establish that it is owned and controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. (a) Ownership and control. An entity must be at least 51% owned by a socially and economically disadvantaged individual, or in the case of a publicly traded company, at least 51% of the stock must be owned by one or more socially and economically disadvantaged individuals, and the management and daily business operations of the business concern must be controlled by such individuals. (See also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations). (b) Socially disadvantaged individual. A socially disadvantaged individual is a person who has been subjected to racial or ethnic prejudice or cultural bias because of his or her identity as a member of a group without regard to his or her individual qualities and as further defined by the implementing regulations of section 8(a)(5) of the Small Business Act (15 U.S.C. 637(a)(5); 13 CFR 124.103; see also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations). (c) Economically disadvantaged individual. An economically disadvantaged individual is a socially disadvantaged individual whose ability to compete in the free enterprise system is impaired due to diminished capital and credit opportunities, as compared to others in the same business area who are not socially disadvantaged and as further defined by section 8(a)(6) of the Small Business Act (15 U.S.C. 637(a)(6)) and its implementing regulations (13 CFR 124.104). (See also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations). Under EPA's DBE Program, an individual claiming disadvantaged status must have an initial and continued personal net worth of less than $750,000. (d) Presumptions. In accordance with Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note, Black Americans, Hispanic Americans, Native Americans, Asian Americans, Women and Disabled Americans are presumed to be socially and economically disadvantaged individuals. In addition, the following institutions are presumed to be entities owned and controlled by socially and economically disadvantaged individuals: HBCUs, Minority Institutions (including Tribal Colleges and Universities and Hispanic-Serving Institutions) and private and voluntary organizations controlled by individuals who are socially and economically disadvantaged. (e) Individuals not members of designated groups. Nothing in this section shall prohibit any member of a racial or ethnic group that is not designated as socially and economically disadvantaged under paragraph (d) of this section from establishing that they have been impeded in developing a business concern as a result of racial or ethnic discrimination. (f) Rebuttal of presumptions. The presumptions established by paragraph (d) of this section may be rebutted in accordance with § 33.209 with respect to a particular entity if it is reasonably established that the individual at issue is not experiencing impediments to developing such entity as a result of the individual's identification as a member of a specified group. (g) Joint ventures. (1) A joint venture may be considered owned and controlled by socially and economically disadvantaged individuals, notwithstanding the size of such joint venture, if a party to the joint venture is an entity that is owned and controlled by a socially and economically disadvantaged individual, and that entity owns 51% of the joint venture. (2) As a party to a joint venture, a person who is not an economically disadvantaged individual, or an entity that is not owned and controlled by a socially and economically disadvantaged individual, may not be a party to more than two awarded contracts in a fiscal year solely by joint venture with a socially and economically disadvantaged individual or entity. ## Nearby sections - [40 CFR § 33.101 § 33.101 What are the objectives of this part?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.101.md) - [40 CFR § 33.102 § 33.102 When do the requirements of this part apply?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.102.md) - [40 CFR § 33.103 § 33.103 What do the terms in this part mean?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.103.md) - [40 CFR § 33.104 § 33.104 May recipients apply for a waiver from the requirements of this part?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.104.md) - [40 CFR § 33.105 § 33.105 What are the compliance and enforcement provisions of this part?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.105.md) - [40 CFR § 33.106 § 33.106 What assurances must EPA financial assistance recipients obtain from their contractors?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.106.md) - [40 CFR § 33.107 § 33.107 What are the rules governing availability of records, cooperation, and intimidation and retaliation?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.107.md) - [40 CFR § 33.201 § 33.201 What does this subpart require?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.201.md) - [40 CFR § 33.202 § 33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.202.md) - [40 CFR § 33.203 § 33.203 How does an entity qualify as an MBE or WBE under EPA's 10% statute?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.203.md) - [40 CFR § 33.204 § 33.204 Where does an entity become certified under EPA's 8% and 10% statutes?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.204.md) - [40 CFR § 33.205 § 33.205 How does an entity become certified by EPA?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.205.md) - [40 CFR § 33.206 § 33.206 Is there a list of certified MBEs and WBEs?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.206.md) - [40 CFR § 33.207 § 33.207 Can an entity reapply to EPA for MBE or WBE certification?](https://www.frixlaw.com/law-library/statutes/ecfr-40-33.207.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-40-33.203. Check the current official text before relying on it. Not legal advice.