Can we keep WBE (Women Business Enterprise) status if my wife owns 51% post transaction?

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August 06, 2024

by a searcher in Baltimore, MD, USA

I'm looking at a business that currently has WBE (Women Business Enterprise) status. While I am not a woman myself, I am married to one and she supports my search. When it comes time to get a loan, she is essentially on the hook as much as I am. With that as the backdrop, is there a way to have her as a 51% owner to continue the WBE status post transaction?

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Reply by a searcher
from Emory University in Tucson, AZ, USA
To clarify, various certifications necessitate two key criteria: The individual must possess majority ownership (at least 51%) of the company, and they must also be actively involved in the daily control, operation, and management of the enterprise. Both conditions must be met to qualify for diverse certifications. (Note, you can have multiple diverse individuals owning the majority of the company, but the same control thresholds are applied to each of the owners.)

If the business is in Federal contracting, that's an entirely different world with significant changes since the Ultima ruling.
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Reply by a searcher
from University of Notre Dame in Frisco, TX, USA
The short answer is yes you can. I have a friend who did that with his business. That said, evaluate whether or not it will actually help you in any way. If you work in the gov't space or have a reason then it could make sense but many times it doesn't really make much of a difference.
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