49 C.F.R. § 26.67

Social and economic disadvantage

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(a) Non-presumptive Disadvantage. All applicants must demonstrate social and economic disadvantage (SED) affirmatively based on their own experiences and circumstances within American society, and without regard to race or sex.

(1) To satisfy the SED requirement and ensure all determinations of disadvantage are not based in whole or in part on race or sex, an owner must provide the certifier a Personal Narrative (PN) that establishes the existence of disadvantage by a preponderance of the evidence based on individualized proof regarding specific instances of economic hardship, systemic barriers, and denied opportunities that impeded the owner's progress or success in education, employment, or business, including obtaining financing on terms available to similarly situated, non-disadvantaged persons.

(2) The PN must state how and to what extent the impediments caused the owner economic harm, including a full description of type and magnitude, and must establish the owner is economically disadvantaged in fact relative to similarly situated non-disadvantaged individuals.

(3) The owner must attach to the PN a current PNW statement and any other financial information he considers relevant.

(b) [Reserved]

[90 FR 47982, Oct. 3, 2025]
Notes of Decisions
Cited in 25 cases (7 in the last 5 years), 2000–2026 · leading case: City of Atlanta v. Corey Ent., Inc., 604 S.E.2d 140 (Ga. 2004).
City of Atlanta v. Corey Ent., Inc., 604 S.E.2d 140 (Ga. 2004). · cites it 3× “First, 49 CFR § 26.67 (a) (2) (iv) prohibits the release of “an individual’s personal net worth statement [and] any documentation supporting it.”
Klaver Constr. Co. v. Kansas Dep't of Transp., 211 F. Supp. 2d 1296 (D. Kan. 2002). · cites it 5× “Individual determinations of social and economic disadvantage are provided for in 49 C.F.R. § 26.67 (d) which provides that: Firms owned and controlled' by individuals who are not presumed to be socially and economically disadvantaged (including individuals whose presumed…”
Associated Gen. Contractors of Am., San Diego Chapter, Inc. v. California Dep't of Transp., 713 F.3d 1187 (9th Cir. 2013). “See 49 C.F.R. §§ 26.67 (a)(1), 26.83(c)(7)(ii).”
Greater Orlando Aviation Auth. v. Nejame, 4 So. 3d 41 (Fla. 5th DCA 2009). · cites it 5× “49 C.F.R. § 26.67 (a)(2)(i) & (ii). Hojeij Branded Foods, Inc.”
W. States Paving Co. v. Washington State Dep't of Transp., 407 F.3d 983 (9th Cir. 2005). · cites it 6× “49 C.F.R. § 26.67 (d). Moreover, the $750,000 net worth limitation on DBE status ensures that wealthy minorities who have not encountered discriminatory impediments do not receive an unwarranted windfall under the DBE program.”
Midwest Fence Corp. v. United States Dep't of Transp., 84 F. Supp. 3d 705 (N.D. Ill. 2015). · cites it 2× “49 C.F.R. § 26.67 (a); Pub.L. No. 112-141 § 1101 (b)(2)(B).”
C.S. McCrossan Constr., Inc. v. Minnesota Dep't of Transp., 946 F. Supp. 2d 851 (D. Minnesota 2013). “49 C.F.R. § 26.67 (a)(1). .The following constitutes the Court’s findings of fact and conclusions of law under Federal Rule of Civil Procedure 65.”
Geod Corp. v. New Jersey Transit Corp., 746 F. Supp. 2d 642 (D.N.J. 2010). · cites it 4× “” 2 49 C.F.R. § 26.67 (a)(1). However, recipients of funds may make case-by-case determinations that “[f]irms controlled by individuals who are not presumed to be socially and economically disadvantaged” still qualify for DBE certification.”
Sherbrooke Turf, Inc. v. Minnesota Dep't of Transp., 345 F.3d 964 (8th Cir. 2003). · cites it 2× “See 49 C.F.R. § 26.67 (b). Small businesses do not qualify if their earnings exceeded $16.”
Mark One Elec. Co. v. City of Kansas City, Missouri, 44 F.4th 1061 (8th Cir. 2022). “3 49 C.F.R. § 26.67 . As part of the certification process, an enterprise must show in writing that its owner’s or owners’ personal net worth is equal to or less than the applicable limit.”
Adarand Constructors, Inc. v. Slater, 228 F.3d 1147 (10th Cir. 2000). “104 (b)(1) (2000); see also 49 C.F.R. § 26.67 (b)(1) (2000) (providing a net worth limit for DBEs under ISTEA and TEA-21); id.”
Grove, Inc. v. United States Dep't of Transp., 578 F. Supp. 2d 37 (D.D.C. 2008). “On the second objection, the Final Decision stated that the Fifth Third Bank Note can “appropriately be considered a contingent liability,” AR 1100, which, under 49 CFR § 26.67 (a)(2)(iii)(C), should not reduce Mrs.”
— 49 C.F.R. § 26.67(b) — 1 case
Tiare Enter., Inc. v. United States Dep't of Transp., 246 F. Supp. 3d 437 (D.D.C. 2017).
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