As required by the Supreme Court’s Adarand decision, and as
urged by Congress, the final regulation provides a narrowly
tailored DBE program, which serves a compelling governmental
• Quotas are prohibited.
• Recipients must use race-neutral methods (like outreach and technical assistance) to meet as much as possible of their overall goals.
• Firms owned by socially and economically disadvantaged white males must be allowed to participate as DBEs.
• Business owners with a personal net worth of more than $1.32 million (excluding the value of the primary residence and the ownership interest in the business) may not participate in the program.
• Individual firms must graduate from the program it they exceed the small business size caps of 22.41 million or if the firm’s owner exceeds the personal net worth cap.