Texas Small Business
Certifications
Texas administers the HUB (Historically Underutilized Business) program through the Comptroller of Public Accounts, covering all state agency procurement with participation goals from 11% to 26% by contract type. TxDOT administers the DBE program for all federally-funded transportation projects. Texas is one of the largest state contracting markets in the country, with over $25 billion in annual state procurement.
Texas's Small Business Certification Programs
Texas's flagship small business certification is the HUB program, one of the most comprehensive state-level programs in the South. Unlike California's SBE program (which is size-based) or New York's MWBE (which is identity-based), Texas HUB combines both: it requires minority, women, or disabled veteran ownership but has no revenue cap. TxDOT operates the DBE program for transportation. Local transit authorities and airport systems operate their own programs.
Texas HUB Certification
The Texas Historically Underutilized Business (HUB) certification is the primary state-level diversity certification in Texas. Administered by the Texas Comptroller of Public Accounts, HUB certification opens all Texas state agency procurement, including higher education institutions like UT System and Texas A&M, to set-aside participation and bid preference opportunities.
HUB participation goals by contract type (Texas Comptroller data):
- Heavy construction (non-building): 11.2%
- Building construction: 21.1%
- Special trade construction: 32.9%
- Professional services: 23.7%
- Other services: 26%
- Commodities: 21%
HUB certification eligibility requires:
- At least 51% owned by a person who is minority (Asian Pacific American, Black American, Hispanic American, or Native American), a woman, or a person with a disability
- The owner must be a U.S. citizen or legal resident alien
- Texas residency of the owner is preferred but not always required, the business must have a principal place of business in Texas
- The eligible owner(s) must have real and substantial control of the business's day-to-day management
Unlike many state programs, Texas HUB has no annual revenue cap. However, very large businesses are unlikely to meet the "substantially independent" and "real control" requirements. Applications are submitted to the Texas Comptroller's Electronic HUB Network (EHN). Certification is valid for two years.
Texas HUB opens state procurement opportunities. Federal certifications (8(a), WOSB, SDVOSB, HUBZone) open federal procurement opportunities. They do not overlap or conflict. A Texas minority-owned business should pursue both Texas HUB and federal 8(a) or WOSB certification to access both markets simultaneously.
Texas DBE Certification (Transportation)
TxDOT administers the DBE program for all federally-funded transportation contracts in Texas under 49 CFR Part 26. TxDOT DBE certification is recognized statewide by:
- TxDOT highway and bridge construction projects
- DART (Dallas Area Rapid Transit), for DOT-funded projects
- Houston Metro, for DOT-funded projects
- Capital Metro (Austin) and other regional transit authorities
- Texas airport construction projects receiving FAA funding
DBE certification is based on SBA size standards for your NAICS code, plus a personal net worth test (under $2.047 million for the owner, excluding primary residence and ownership interest in the business). The application is submitted to TxDOT's Civil Rights Division.
Airport Concession DBE (ACDBE) in Texas
Texas's major airports, Dallas/Fort Worth International (DFW), George Bush Intercontinental (IAH), and Austin-Bergstrom International (AUS), all have active ACDBE programs for concession contracts (food & beverage, retail, services). ACDBE certification in Texas is separate from highway DBE certification and is applied for directly through each airport authority.
DFW Airport alone awards over $500 million in concession contracts over a typical contract cycle. ACDBE participation goals at major Texas airports range from 20% to 35%.
GovLadder checks HUB, DBE, and 80+ more programs, then guides your Texas Comptroller and TxDOT applications.
Frequently Asked Questions
Texas HUB (Historically Underutilized Business) certification is administered by the Texas Comptroller of Public Accounts. HUB-certified businesses must be at least 51% owned by minorities, women, or disabled veterans. State agencies must make a good-faith effort to include HUBs, with participation goals ranging from 11% to 26% depending on contract type. Texas spends over $25 billion annually where HUB participation is tracked.
Texas HUB applications are submitted through the Texas Comptroller's Electronic HUB Network (EHN) at comptroller.texas.gov. The application requires IRS documentation, proof of ownership and control (51%+ by eligible owner), and a current financial statement. Processing typically takes 60–90 days. Certification is valid for two years.
Texas DBE certification is administered by TxDOT and covers all federally-funded transportation projects in Texas, highway construction, transit systems, airport development, and port projects. TxDOT DBE certification is recognized statewide by regional transportation authorities and local governments administering DOT-funded projects.
No, Texas HUB and federal certifications (8(a), WOSB, HUBZone, SDVOSB) are separate programs with separate applications and separate benefits. Texas HUB unlocks state procurement opportunities; federal certifications unlock federal contract set-asides. They are complementary, hold both for maximum market access.
Texas HUB requires at least 51% ownership by a person who is a minority (Asian Pacific, Black, Hispanic, or Native American), woman, or person with a disability. The owner must be a U.S. citizen or legal resident, must have real and substantial control of day-to-day operations, and the business must have a principal place of business in Texas. There is no revenue cap.