How is a MWBE/HUB Defined?

What is an Historically Underutilized Business(HUB)?

The State of North Carolina defines a Historically Underutilized Business(HUB) as a business where 51 percent of the business is owned by, and the daily management and business operations are controlled by, one of the following:

  • Black, Hispanic, Asian American or American Indian

  • Female

  • Socially and Economically Disadvantaged

  • Disabled

Businesses seeking to qualify as a HUB must be certified through the Statewide Uniform Certification Program(SWUC) administered by the N.C. Office for Historically Underutilized Businesses.

A business wishing to become HUB certified may apply free of charge to the N.C. Office for Historically Underutilized Businesses. When completing the WS/FCS Vendor application, HUB vendors must identify themselves on the form and submit it along with a copy of the certification to the Purchasing Department.

What is MWBE?

The term "minority person" defined in North Carolina G.S. 143-128 means an individual who is a citizen or lawful permanent resident of the United States and who is Black, Hispanic, Asian American, Native American, Female, disabled or socially and economically disadvantaged.

"Minority businesses" are defined in North Carolina General Statutes 143-128 as businesses in which at least 51% percent ownership is held by one or more minority persons or by individuals defined as socially and economically disadvantaged. 

The term “socially and economically disadvantaged individual” is defined by reference to a federal statute (15 U.S. C. § 637).

  • Socially disadvantaged individuals are “those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.”

  • Economically disadvantaged individuals “are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business who are not socially disadvantaged.

    The federal law provides methods of determining economically disadvantaged status based on the individual’s assets and net worth.

A socially and economically disadvantaged business is one that is 51 percent owned by one or more socially and economically disadvantaged individuals, an economically disadvantaged Indian tribe, or an economically disadvantaged Native Hawaiian organization.

Senate Bill 914 was enacted by the North Carolina State Legislature to encourage the use of good faith efforts by all state universities and public entities in the recruitment and selection of minority firms to reach a 10% minimum participation level on public sector construction projects.