Small Business Development

Small Business Development

DBE Interim Final Ruling (IFR) Update

Disadvantaged Business Enterprise (DBE) Program

All DBE and SBE Certification-Related Activities are Paused Until Further Notice

Due to the recent Interim Final Rule (IFR) issued by the U.S. Department of Transportation, effective October 3, 2025, our office is temporarily pausing all DBE/ACDBE processing activities until further notice. The pause is necessary pursuant to 49 CFR §26.111, each Unified Certification Program (UCP) must immediately begin the reevaluation process of all currently certified firms to ensure compliance with the new certification standards.

This pause includes:

Annual Declarations of Eligibility (DOE)
Three-year reviews
Change requests
New In-State applications
Interstate applications

Re-Evaluation Requirements for All DBE Firms

Due to the new IFR changes issued by the U.S. Department of Transportation, all former DBEs must complete a full reevaluation. This includes submitting both a Personal Narrative and an updated Personal Net Worth (PNW) statement. Please inform our office (kytc.ocrsbd@ky.gov) if you do not intend to submit a personal narrative and personal net worth statement. If you wish to formally withdraw your application from the DBE Program, please submit the official Withdrawal Form.

Under the IFR, every UCP is required to reevaluate all firms they originally certified to ensure each firm continues to meet the DBE eligibility requirements. This includes submitting BOTH a Personal Narrative and an updated Personal Net Worth (PNW) Statement with any other financial information the owner considers relevant.

This applies to every certified DBE
This is designed to ensure consistency with updated federal standards

If your firm's Jurisdiction of Original Certification (JOC) is Kentucky, you are required to submit a Personal Narrative and Personal Net Worth Statement. The certification anniversary of a DBE recertified under the reevaluation process at 49 CFR § 26.111 will continue to be the date of the DBE's original certification under the DBE certification standards issued prior to October 3, 2025.
If your firm's JOC is not Kentucky, you will need to be reevaluated with your JOC first, then apply through Interstate Certification if you want to be certified in Kentucky.

How to Submit a Re-Evaluation Application

Please upload these documents in our certification management system, B2GNow and select the “2025 Reevaluation Application” as soon as possible.

To complete the reevaluation process, the Kentucky Transportation Cabinet (KYTC) has established a timeframe for Kentucky firms to submit the required Personal Narrative (PN) and Personal Net Worth (PNW) Statement. The submission timeframe is March 31, 2026.

If you do not submit the PN and PNW by March 31, 2026, your firm may still submit the required documentation at a later time; however, your firm will remain ineligible to be counted toward DBE participation until the PN and PNW are submitted, DBE eligibility is demonstrated under the new standards, and certification is obtained.

Clarifications Related to DBE Contractor Compliance

Prime contractors and consultants must continue to comply with all existing DBE requirements (IFR; FAQ Section B). These include:

Prompt payment (§26.29)
Termination protections (§26.53(f))
Nondiscrimination requirements (§26.13)

The FAQ also states that CUF reviews are not required while DBE counting is paused (FAQ Section B). If a DBE used on a contract is not recertified, the recipient (the public agency that holds the federal funds and administers the contract, such as the State DOT or local agency) must take appropriate action, such as modifying the contract or adjusting DBE commitments (§26.111; FAQ Section B).

The FAQ clarifies that the reevaluation process does not interrupt contract performance and that FHWA will not participate in delay claims related to reevaluation (FAQ Section B). Contractors should ensure their DBE subcontractors respond promptly to UCP requests and be prepared for adjustments if DBE eligibility changes.

Access to IFR and FAQs

DBE Reciprocity

The Kentucky Transportation Cabinet has established a DBE reciprocity agreement with Indiana DOT for statewide projects allowing DBEs certified in either Kentucky or Indiana to be used for any transportation federal aid project in the partner state. For the most up to date list of DBE's certified in Indiana please click here: Indiana DBE Directory.

There is also an agreement with Ohio DOT exclusively for the Brent Spence Bridge Project.

DBE Reciprocity Agreements - please click here:

Small Business Enterprise (SBE) Program

The Kentucky Transportation Cabinet's SBE Program is administered by the Office for Civil Rights and Small Business Development.

Businesses interested in pursuing a SBE certification must meet the specific size standards, including being a small business, and have personal net worth within the threshold and submit a completed application with supporting documents. Certified DBE firms are considered for SBE certification without submitting an SBE application.

How to Apply for SBE Status in Kentucky

First Time Applicants

First time applicants applying for SBE certification must complete and submit the Small Business Enterprise Application and supporting documentation. If you fail to submit the required documents, your application may be delayed and/or denied.

Businesses interested in becoming certified as a SBE can submit an application online at: KYTC Online SBE Application.

What Happens Once I am a SBE?

Annual Declaration of Eligibility

It is the SBEs responsbility to notify its certifying agency within 30 days of any change that can impact a firms eligibility. SBEs must also annually affirm that there have been no changes.

Report changes are required within 30 days of the occurence of the change:

Changes in a firm's circumstances affecting its eligibility, or material changes in the information provided in the firm's application form;
Submission of the annual SBE Affidavit and most recent Federal tax return on the anniversary date of the firm's certification;
Work code change/expansion requests;
Notification of address, phone, or other contact information changes; and
Withdrawal of certification

Failure to notify of changes or failure to submit an Annual SBE Affidavit within the required time frame is deemed a failure to cooperate and is grounds for removal of a firm's SBE certification.

Three-Year Certification Review

SBE certification is valid for three (3) years from the date of initial certification. KYTC will notify you of upcoming renewals and it is the firm's responsibility to submit the required documentation. If you are also DBE/ACDBE certified, the SBE review will take place during the DBE/ACDBE review.

Submit the SBE Three-Year Review online at: KYTC Online SBE Three-Year Review.

Supportive Services

The Kentucky Transportation Cabinet provides supportive services to DBEs conducting business with or seeking to conduct business with KYTC. Supportive Services are designed to contribute to the growth and business efficiency of DBEs so that they may achieve proficiency in competing for contracts and subcontracts. For more information, please visit the CEI Supportive Service webpage.