What is the threshold for Personal Net Worth (PNW)?
Disadvantaged individuals having a Personal Net Worth (PNW) of less than $1,320,000 can be considered to potentially qualify for DBE or SBE certification. Items excluded from an individual’s PNW calculation include their ownership interest in the applicant firm and his/her equity in their primary residence.
When filling out the PNW Statement, should I include my primary residence even though it is excluded from the PNW calculation?
Yes, you must indicate the current market value of your primary residence on the PNW statement any debt you owe against it. The equity in your primary residence does not count toward the allowed $1,320,000 PNW limit.
Which business owner should fill out the PNW Statement?
The majority disadvantaged owners(s) whose ownership and control is being relied upon for DBE certification or SBE Verification should complete a PNW Statement. Usually this person owns 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 disadvantaged owner(s) whose ownership and control is being relied upon must complete the PNW Statement.
Are my taxes and other required personal information secured?
At Metra, we comply with confidentiality requirements and take this responsibility seriously. All files are locked in cabinets which only DBE staff has access.
Do my Income Tax Returns (Personal and Business) need to be signed?
According to the Internal Revenue Code, an income tax return (Form 1040, 1065, 1120 & related supplements) is not considered a valid return unless signed by the tax payer(s). By signing the return the tax payer(s) attest tot the accuracy and completeness of the return.
Does the PNW Statement need to be signed and notarized?
Yes, the PNW Statement must be signed and notarized.