New DBE Rules: What They Mean and How to Write Your Disadvantaged Narrative

When the SBA changed its 8(a) program in 2023, many small business owners were caught off guard. For decades, race and gender were presumed indicators of social disadvantage. That changed overnight. Suddenly, every applicant had to write a personal narrative explaining how they experienced disadvantage in education, employment, or business. Back then, I wrote about how the change required applicants to submit a personal narrative to stay in the 8(a) program.

Now the U.S. Department of Transportation (USDOT) has followed the same path. Their new Interim Final Rule removes race and gender as automatic indicators of disadvantage for the Disadvantaged Business Enterprise (DBE) program. Every firm, new or existing, must now prove individual social and economic disadvantage through a written statement and financial documentation.

This change affects every DBE-certified firm in the country. Agencies like LA Metro have already paused setting DBE contract goals while they reevaluate firms under the new rules. It is the same process SBA went through with 8(a), and the same lessons apply.

What Happened with SBA’s Change

When the SBA rule first came out, it required every 8(a) applicant to write a personal narrative describing specific examples of discrimination that caused professional or financial harm. Most of us had never written anything like that before.

At ThinkNow, a 100% Hispanic-owned firm, we had to describe moments in our lives that shaped how we were treated in education, employment, and business. Writing those examples was not easy, but it was revealing. The process made clear how bias and systemic barriers had influenced our journey as Latino business owners in an industry that is still overwhelmingly non-Hispanic white.

In the end, the SBA was not asking for emotion. They wanted evidence. They wanted a clear cause-and-effect between a moment of discrimination and a tangible setback. That same approach now applies to the DOT’s DBE program.

What DOT’s Change Means for You

The new DOT rule eliminates the presumption that minorities or women are socially and economically disadvantaged. Everyone must now demonstrate their disadvantage through specific, documented examples.

If you are certified as a DBE, you will need to prepare to requalify. If you are applying for the first time, your narrative will determine whether you are approved.

The good news is that you can write a strong narrative by being factual, specific, and clear about how discrimination has affected your career or business.

How to Write a Strong Disadvantaged Narrative

The SBA format used for the 8(a) program is the best starting point for the DOT’s new rules. It requires two detailed examples of discrimination that had a negative effect on your professional life. Each example should include:

1. When it happened
2. Where it happened
3. Who was involved
4. What happened
5. Why it was discriminatory
6. How it caused harm

Here’s how it looks in practice:

“On [date], I applied for a position at [xxxx]. Another applicant, who was not [Hispanic/African American/Female/etc], and I had nearly identical qualifications and prior work experience. After the interviews, he was offered a front-of-store sales associate position with higher pay and commission opportunities, while I was offered a lower-paying stockroom job. When I asked about the difference, I was told that customers “relate better” to certain employees. That decision limited my income and delayed my ability to support myself financially at a critical point in my life.”

That one paragraph includes everything the agencies look for: time, place, cause, and impact.

Write two examples like that, ideally from different areas such as education, employment, or business. Avoid vague statements like “I have always faced discrimination.” Instead, focus on specific events that changed the direction of your life or business.

Connect Each Story to a Measurable Outcome

For each example, explain how the discrimination caused real harm. This could include:

• Lost income or promotions
• Denied contracts or partnerships
• Difficulty obtaining credit
• Delayed business growth

The reviewers are not judging how you felt. They are evaluating whether discrimination had a material effect on your professional advancement.

End on a Forward-Looking Note

Close your narrative by showing perseverance and commitment to growth. The SBA and DOT both value evidence of resilience. Make it clear that, despite barriers, you continue to build your business and contribute to your community.

Through ThinkNow, we built a multicultural insights firm that challenges the very barriers we experienced. Our goal is to ensure that the next generation of diverse entrepreneurs does not face the same obstacles.

Final Thoughts

Both the SBA and, now, the DOT have adopted a race-neutral standard that requires every applicant to tell their own story. This may seem like a burden, but it also gives business owners the power to define their own experience in their own words.

If you are preparing to reapply or renew your certification, take the time to write a clear and honest narrative. Be specific. Be factual. And remember, this is your opportunity to show the path you’ve walked and the strength it took to get here.

You can read more about the SBA’s 2023 change on our blog at ThinkNow.com/blog.