Small Business Development

Small Business Development

On September 30, 2025, USDOT published an Interim Final Rule (IFR) that significantly changes the Disadvantaged Business Enterprise (DBE) and Airport Concessionaire (ACDBE) programs. The link to the USDOT website is located here: DBE Laws, Policy, and Guidance | US Department of Transportation.

The IFR is effective upon publication in the Federal Register, which was published on October 3, 2025 as indicated here: Federal Register :: Disadvantaged Business Enterprise Program and Disadvantaged Business Enterprise in Airport Concessions Program Implementation Modifications.

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

Reevaluation Requirement for All DBE Firms

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 currently 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.

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.

Access to IFR and FAQs

We Are Here to Support You
Our office understands that this transition period may bring questions, and we are committed to supporting you throughout this process. We will continue to share updates, guidance, and resources to help every certified firm navigate the reevaluation process smoothly and without disruption to their business. Additionally, our supportive services CEI will also be available to assist firms, so please be on the lookout for additional updates or communications from them.

For questions about this reevaluation process, please contact our office at 502-564-3601.

Disadvantaged Business Enterprise (DBE) Program

If the firm has no intention of participating or bidding on DOT-assisted contracts or airport concessions contracts, KYTC recommends that you do not pursue DBE/ACDBE certification.

Should I Apply?

The Kentucky Transportation Cabinet encourages businesses to apply for DBE certification with the intention to bid work as a prime or subcontractor on DOT-assisted contracts or airport concessions contracts. This includes construction and non-construction work in the transporation industry.

To achieve DBE status a business must meet the following criteria:

Must be an existing “for-profit" business that is currently operational;
Must meet the federal definition of a small business concern;
Must be an independent business which does not depend on its relationships with another firm or firms. If it is a subsidiary of a corporation, the business must still operate in a self-sufficient manner;
The qualifying owner(s) must meet the federal definition of "socially and economically disadvantaged" individuals;
The qualifying owner(s) must own a minimum of 51% of the company; and have an investment in their company;
The qualifying owner(s) cannot have a net worth that exceeds the PNW cap as defined by 49 C.F.R. §23 and §26 (excluding the owner's business, primary residence, and retirement accounts);
The qualifying owner(s) must have day-to-day control of operations and possess an expertise in their work specialty.

How to Apply for DBE Status in Kentucky

The DBE certification process differs depending on if a firm is already DBE certified in other states. Certifying agencies are required to follow the Code of Federal Regulations (CFR) outlined in 49 CFR §23 and/or 49 CFR §26.

First Time Applicants

First time applicants applying for DBE certification must complete and submit the Unified Certification Application (UCA) and supporting documentation, then participate in an on-site interview conducted by the agency. If you fail to submit the required documents, your application may be delayed and/or denied. Firms already certified as a DBE in another state will need to follow the DBE Interstate Application process.

Businesses interested in becoming certified as a DBE and/or ACDBE can submit an application online at: KYTC Online DBE/ACDBE Application.

DBE Interstate Application

Firms that are already certified as a DBE in their state of Jurisdiction of Original Certification (JOC), are required to follow the Interstate Certification expectations as outlined in 49 CFR §26.85 of the Code of Federal Regulations. You MUST provide:

A Cover Letter - that specifies that the DBE is applying for interstate certification, identifying all UCPs in which the DBE is certified (including the UCP that originally certified it);
An Electronic Image - of the UCP directory that shows the DBE certification*;
A New Declaration of Eligibility (DOE).

Apply online at: KYTC Online DBE Interstate Application

What Happens Once I am a DBE?

Once you are certified as a DBE/ACDBE, your firm is placed our statewide directory. This directory is not a guarantee that you will get KYTC work. To maintain your DBE certification, you must submit annual documentation and comply with three-year certification reviews.

Annual Declaration of Eligibility

It is the DBEs responsbility to notify its certifying agency within 30 days of any change that can impact a firms eligibility. DBEs 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 Declaration of Eligibility (DOE) 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 your certifying agency of changes or failure to submit and Annual Declaration of Eligibility within the required time frame is deemed a failure to cooperate and is grounds for removal of a firm's certification.

Submit the DBE/ACDBE Annual Declaration of Eligibility online at: KYTC Online DBE Annual Declaration of Eligibility.
Watch the training video on how to submit an Annual/Three-Year Review or download the B2G User Manual.

Three-Year Certification Review

In accordance with 49 CFR 26.83(h), it is the KYTC’s policy to conduct a review process for all certified firms. A review of the certified firm will be performed every three (3) years of certification beginning from the date of the initial notice of certification.

Submit the DBE/ACDBE Three-Year Review online at: KYTC Online DBE Three-Year Review.

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. This application is for non-DBE firms applying for Small Business Enterprise (SBE) certification.

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 eligible to be 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. Firms already certified as a DBE will just need to submit an SBE Affidavit.

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 your certifying agency 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 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.