Skip to Main Content
Federal Reserve Bank of Richmond

What Is a Diverse Supplier?

What is a Diverse Supplier?

The Bank promotes the inclusion of a diverse pool of suppliers, including, but not limited to, small, minority-owned and women-owned businesses, in its procurement and contracting opportunities.

Diverse Supplier Definitions

Minority-owned business means a business:

  1. More than 50 percent of the ownership or control of which is held by one or more minority individuals; and
  2. More than 50 percent of the net profit or loss of which accrues to one or more minority individuals.

Source: Federal Home Loan Bank Act Section 21A(r)(4)(A)

Minority means any black (or African-) American, Native American (or American Indian), Hispanic (or Latino) American or Asian American.

Women-owned business means a business:

  1. More than 50 percent of the ownership or control of which is held by one or more women; 
  2. More than 50 percent of the net profit or loss of which accrues to one or more women; and 
  3. A significant percentage of senior management positions of which are held by women.

Definition Source: Federal Home Loan Bank Act Section 21A(r)(4)(B)

Disabled-owned business means a business:

  1. Qualified as a service-disabled veteran-owned small business concern as defined in 13 C.F.R. §§ 125.8-125.13; or 
  2. More than 50 percent of the ownership or control of which is held by one or more persons with a disability; and 
  3. More than 50 percent of the net profit or loss of which accrues to one or more persons with a disability.

Disability has the meaning defined in 29 C.F.R. § 1630.2(g), § 1630.3 and Appendix to Part 1630 — Interpretive Guidance on Title I of the Americans with Disabilities Act.

Service-disabled veteran-owned small business means a business:

  1. Not less than 51 percent of which is owned by one or more service-disabled veterans, or in the case of any publicly owned business, not less than 51 of the stock of which is owned by one or more service-disabled veterans; and 
  2. The management and daily business operations of which are controlled by one or more service-disabled veterans, or in the case of a veteran with a permanent and severe disability, a spouse or permanent caregiver of such veteran.

Definition Source: 13 C.F.R. §§ 125.8-125.13

Service-disabled veteran has the meaning described by the United States Department of Veterans Affairs at www.vip.vetbiz.gov.

Gay, lesbian, bisexual or transgender-owned business (or GLBT-owned business) means a business:

  1. At least 51 percent of which is owned, operated, managed and controlled by one or more gay, lesbian, bisexual or transgender persons who are either U.S. citizens or lawful permanent residents; 
  2. That exercises independence from any nongay, lesbian, bisexual or transgender-owned business enterprise; 
  3. With its principal place of business (headquarters) in the United States; and 
  4. Formed as a legal entity in the United States.

Definition Source: National Gay and Lesbian Chamber of Commerce.

See More Definitions for more detailed information on diverse business classifications.

Certification

The diverse supplier must be certified by a recognized third-party certifying organization such as an affiliate of the National Minority Supplier Development Council (NMSDC); a regional partner organization (RPO) of the Women’s Business Enterprise National Council (WBENC); or a federal, state or local government certifying agency or program.

phone Contact Us

Supplier Diversity