North Carolina Minority Business Owners Seek New Contracting Rules

North Carolina’s government procurement landscape is shifting rapidly after the legislative decision to dismantle the Office for Historically Underutilized Businesses (HUB). For 27 years, this office acted as the primary gateway for minority-owned firms to secure state contracts by providing a centralized database and specialized training. Now, the doors are closed. Business owners say they fear the loss of a system that facilitated both visibility and economic opportunity.

Advocates and business leaders gathered at the International Civil Rights Center and Museum in Greensboro on September 10, 2026, to demand a clearer path forward. The immediate disruption to existing business relationships and the potential loss of millions in state-funded projects dominated the discussion. According to reporting by NC Newsline, the closure has left thousands of firms searching for a new way to verify their status for state bidding.

The Shift from HUB to Small Business Enterprise

North Carolina’s 2026 budget triggered the transition away from the HUB office by cutting diversity, equity, and inclusion (DEI) initiatives. This budget effectively ended state recognition of HUB certifications for government contracts. In response, a coalition of minority business organizations known as The Collective is urging the state to implement more inclusive North Carolina minority business contracting goals within the existing Small Business Enterprise (SBE) program.

The Department of Administration manages the SBE program, which serves small businesses regardless of the owner's demographic.

Advocates are specifically calling for a "grandfathering" process to automatically transfer all previously certified HUB firms into the SBE system. This move aims to prevent certification lapses that could disqualify firms from active bidding cycles.

Economic Impact and Contract Losses

Local contractors are already feeling the policy change. Gerald Carr, CEO of All-Pro Builders and Restorations, told the Greensboro crowd that his company lost a contract valued at over $400,000 just three days after the HUB office shut down. For many small firms, the certification was a critical tool for building relationships with prime contractors who must meet participation targets.

State Representative Amos Quick III noted during the panel that the state must better communicate the economic contributions of these businesses. Supporting minority-owned firms is not merely a social policy but an economic one that strengthens the state’s supply chain and tax base. Small firms must now navigate a fragmented procurement process without the old training and notification system.

The New State Accelerator Program

State officials announced a new accelerator program during the September 10 gathering to help mitigate the confusion. Scheduled to launch on October 15, 2026, the Department of Administration will oversee the program. Its primary function is to help the approximately 6,000 businesses formerly enrolled in the HUB program transition to the SBE certification.

Gabriel Esparza, Secretary of the Department of Administration, stated that the accelerator aims to fast-track certifications so minority and women-owned businesses can continue to compete.

Business owners remain cautious about whether a general small business program can provide the same targeted support and visibility the HUB office offered for nearly three decades.

Future Policy Demands and Advisory Councils

The Collective is calling for broader structural changes within the state government beyond the certification transfer. One key demand is for Governor Josh Stein’s administration to establish a new Advisory Council on Black Affairs. This council would serve as a formal body to advise the executive branch on policies affecting minority business growth and economic equity.

Uncertainty remains the dominant mood as the state approaches the October 15 launch. Business owners should monitor the Department of Administration’s website for updates on Small Business Enterprise program requirements. Verifying existing certifications and understanding the new bidding rules will be essential for any firm looking to participate in the $34 billion state budget's upcoming projects.