What is the threshold for Personal Net Worth (PNW)?
Only disadvantaged persons having a Personal Net Worth (PNW) of less than $1,320,000 can be considered as a potential qualified DBE or SBE. Items excluded from a person’s net worth calculation include an individual’s ownership interest in the applicant firm and his or her equity in their primary residence.
When filing out the PNW Statement, should I include my primary residence even though it is excluded from the net worth calculations?
Yes, you must indicate the current market value of your primary residence on the PNW form together with any debt you owe against it. The equity in your primary residence does not count toward the allowed $1,320,000.
Which business owner should fill out the Personal Net Worth Statement?
The majority disadvantaged owner(s) whose ownership and control is/are being relied upon for DBE certification or SBE Verification should complete a PNW Statement. Usually this person owns 51% or more of the firm. If two disadvantaged owners make up a majority of 51% ownership, both will be required to complete the PNW. For example, if Owner A owns 33%, Owner B owns 33% and Owner C owns 34% the two disadvantaged owners whose ownership and control is being relied upon must complete the PNW.
Are my taxes and other required personal information secured?
At Metra, we must comply with confidentiality requirements and take this responsibility seriously. All files are locked in cabinets which only DBE staff has access.
What is the purpose of an on-site visit?
It is a regulatory requirement. The federal regulations in 49 CFR Part 26.83, Subpart E state:
“Perform an on-site visit to the offices of the firm. You must interview the principal officers of the firm and review their resumes and/or work histories. You must also perform an on-site visit to job sites if there are such sites on which the firm is working at the time of the eligibility investigation in your jurisdiction or local area. You may rely upon the site visit report of any other recipient with respect to a firm applying for certification.”
Is an on-site visit performed for home-based businesses?
Yes, if your business is based out of your home an on-site visit is still required.
If my business is out of state how is the on-site visit performed?
For out-of-state businesses, a phone interview may be performed in place of the on-site visit. You may also be asked to provide additional information.