The Federal Aviation Administration (FAA) and U.S. Department of Transportation (USDOT) recently revised the regulations found in 49 CFR Part 23, which govern Airport Concessions Programs and Airport Concessionaire Disadvantaged Business Enterprises (ACDBEs). 

 The most significant change for ACDBEs under the new rule is the imposition of a  $750,000 personal net worth cap.  As you may know, this is the same amount as the cap that currently applies to Disadvantaged Business Enterprises (DBEs) doing construction and other contract work at U.S. airports.  As in the case for DBEs, the cap amount is determined by calculating the “net value of the assets of an individual after total liabilities are deducted” (49 CFR 23.3).  Also, as in the case for DBEs, certain assets are not included in the calculation, including the individual’s ownership interest in the ACDBE firm itself and any equity in the business owner’s personal residence.  Unlike for DBEs, ACDBE’s may also exclude from their assets counting toward the $750,000 “other assets that the individual can document are necessary to obtain financing or a franchise agreement for the initiation or expansion of his or her ACDBE firm (or have in fact been encumbered to support existing financing for the individual’s ACDBE business), up to a maximum of $3 million” (49 CFR 23.3).

 Under the new rule, by April 21, 2006, all currently certified firms must complete new “no change” affidavits, certifications of disadvantage and statements of personal net worth by April 21, 2006.  In order to make sure that your firm is in compliance, click here for our compliance check application packet. 

Also, please be aware that all currently certified ACDBEs will need to be re-certified by April 21, 2006 or by three years from the date of their last certification (or re-certification) which ever is later.  Click here to link to the new ACDBE application.

Please be advised that there is no charge for the compliance check, certifications or re-certifications for ACDBEs.