“..It is clear from the application that disadvantaged individuals do not own or control the firm (e.g., that non-disadvantaged individuals own 60 percent of the stock, or that white males make all day-to-day business decisions of the company) ”

White males?!!!

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Section 26.83 Preamble / 26.83 Regulation

Section 26.83(c)1)
IS AN ON-SITE REVIEW OF A FIRM NECESSARY TO CERTIFY A FIRM? TO DENY CERTIFICATION TO THE FIRM?
(Posted – 2/12/02)
ANSWER:
• As a recipient, you are not permitted to certify a firm as an eligible DBE unless there has been an on-site review of its eligibility that you take into account in making your decision. There are no exceptions to this requirement, which is crucial to preventing DBE fraud and ensuring the integrity of the DBE program.
• However, there are some situations in which you may deny certification to a firm without an on-site review.
• Generally, these situations are ones in which the information contained in the firm’s application, viewed in the light most favorable to the firm, precludes it from being certified.
• Here are examples of these situations:
o The personal net worth statement of the sole owner of a firm exceeds the $750,000 limit
o The firm exceeds the $17.42 million cap on gross annual receipts, averaged over three years, or exceeds the applicable SBA business size standard
o The applicant fails to cooperate with the recipient’s information requests (e.g., an owner refuses to supply necessary personal net worth information)
o It is clear from the application that disadvantaged individuals do not own or control the firm (e.g., that non-disadvantaged individuals own 60 percent of the stock, or that white males make all day-to-day business decisions of the company)
Section 26.83 Preamble / 26.83 Regulation

Section 26.83(c)1)
IS AN ON-SITE REVIEW OF A FIRM NECESSARY TO CERTIFY A FIRM? TO DENY CERTIFICATION TO THE FIRM?
(Posted – 2/12/02)
ANSWER:
• As a recipient, you are not permitted to certify a firm as an eligible DBE unless there has been an on-site review of its eligibility that you take into account in making your decision. There are no exceptions to this requirement, which is crucial to preventing DBE fraud and ensuring the integrity of the DBE program.
• However, there are some situations in which you may deny certification to a firm without an on-site review.
• Generally, these situations are ones in which the information contained in the firm’s application, viewed in the light most favorable to the firm, precludes it from being certified.
• Here are examples of these situations:
o The personal net worth statement of the sole owner of a firm exceeds the $750,000 limit
o The firm exceeds the $17.42 million cap on gross annual receipts, averaged over three years, or exceeds the applicable SBA business size standard
o The applicant fails to cooperate with the recipient’s information requests (e.g., an owner refuses to supply necessary personal net worth information)
o It is clear from the application that disadvantaged individuals do not own or control the firm (e.g., that non-disadvantaged individuals own 60 percent of the stock, or that white males make all day-to-day business decisions of the company)