Effective October 3, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) that removes race-and sex-based presumptions from the definition of “socially and economically disadvantaged individual."

WHAT HAS CHANGED

All firms seeking DBE or ACDBE certification must now demonstrate social and economic disadvantage on an individual basis. Specifically, the majority business owner(s) must show that they are socially and economically disadvantaged (SED) based on personal experiences and circumstances within American society without regard to race or sex. To do so, the SED owner must submit a completed personal net worth (PNW) document, and a personal narrative (PN) to the certifying agency that establishes disadvantage by a preponderance of the evidence. The personal narrative should include individualized proof of specific instances of economic hardship, systemic barriers, or denied opportunities that hindered the owner's progress or success in education, employment, or business. Examples may include difficulty obtaining financing on terms available to similarly situated, non-disadvantaged individuals.

NEXT STEPS

• • If your firm is currently DBE/ACDBE certified with the San Francisco Bay Area Rapid Transit District (BART), you will receive detailed instructions regarding the submission of the required personal narrative.
• • Firms that were previously denied DBE/ACDBE certification due to Appendix E or individual determinations of social disadvantage and believe they may now qualify under the revised regulation are encouraged to apply for DBE/ACDBE certification.
• • Businesses interested in applying for DBE/ACDBE certification, or desire recertification, should begin preparing the personal narrative required under the new standards. Please note: If BART is not your DBE/ACDBE certifying agency you will need to contact your designated DBE/ACDBE certifying agency in the jurisdiction of original certification (JOC) for instructions on how to submit the personal narrative.

If you have any questions regarding the DBE/ACDBE program updates, please contact Hoa Sin, Deputy Director of the Office of Civil Rights, OCRCertifications@bart.gov.