California Women-Owned Business Certification and Funding
Last verified: 4 November 2026.
Quick answer: California has no state program that sets aside contracts or gives bidding preferences to women-owned businesses, because a 1996 ballot measure called Proposition 209 forbids it. That surprises many people, because other states have such programs. Women-owned businesses in California can still get certified in other ways: through the CPUC’s Supplier Clearinghouse, which verifies women-owned firms for the big utility companies, through the City of Los Angeles for city contracts, through the private WBENC certification, and through the federal SBA program. We also found no state grant program reserved for women-owned businesses, even though many websites claim one exists.
Why does California have no state women-owned business program?
In 1996 California voters approved Proposition 209, which added Section 31 to Article I of the state constitution. In plain words, it says that the state and its cities, counties and agencies may not discriminate against anyone, or give preferential treatment to anyone, because of race, sex, color, ethnicity or national origin in public employment, public education or public contracting. A program that reserves contracts or gives bidding advantages to women-owned businesses is a preference based on sex, so it is not allowed.
The courts have read the rule broadly. The California Supreme Court has held that even a city outreach program aimed at women- and minority-owned subcontractors violated Section 31. In 2020 voters were asked to repeal Proposition 209 through Proposition 16, and they rejected it, so the ban stands. This is the main reason you will find fewer government programs for women-owned businesses in California than in New York or Illinois.
How does the CPUC Supplier Clearinghouse certification work?
The CPUC runs a supplier diversity program for the large investor-owned utilities it regulates, such as electric, gas, telephone and water companies. It is set out in a rule called General Order 156, and a contractor called the Supplier Clearinghouse handles the certification. A business verified by the Clearinghouse can be listed as a women-owned business enterprise (WBE) in a directory that these utilities use when they look for diverse suppliers.
| Question | What the CPUC says |
|---|---|
| Cost | Free. There is no fee to apply or take part. |
| Speed | Usually granted within 45 days of receiving a complete application. |
| Length | Valid for three years. |
| Who qualifies | A business at least 51% owned by a woman, minority or LGBT person whose management and daily operations are controlled by that person. |
| Contact | thesupplierclearinghouse.com or (800) 359-7998. |
Typical documents include a notarized affidavit, federal tax returns, your articles of incorporation or similar formation papers, and records showing who owns the company. Ask the Clearinghouse for its current checklist, because the exact list can change. The certification is mainly useful if you want to sell to utilities or to the contractors who serve them, although some other organizations and states accept it too.
What does the City of Los Angeles offer?
The City of Los Angeles runs its own certification for minority-owned and women-owned business enterprises for city contracts, with application forms and rules published by its Bureau of Contract Administration. According to the city’s FAQ, it accepts MBE and WBE applications only from firms whose principal office is in Los Angeles County. It also recognizes certain certifications from other agencies, including WBE certification from WBEC-West, the Supplier Clearinghouse certification described above, and small minority or women business certification from Caltrans. In other words, one certification can sometimes save you a second full application. Because Proposition 209 limits what cities can do, check with the city what the certification actually gives you today.
Which other certifications can California women-owned firms use?
- WBENC certification. This is a private certification that corporate buyers use. For California, the regional partner that processes it is WBEC-West. See how to apply for WBE certification.
- SBA certification. The federal program for women-owned small businesses applies in California as everywhere else. See our guides to EDWOSB certification and to SBA’s 2026 EDWOSB review.
- The state’s small business certification. The Department of General Services offers a small business certification that is not based on gender. It is open to eligible small businesses of any owner, so it does not depend on Proposition 209. Check the department’s site for the current size limits.
- Transportation contracts (DBE). Since October 3, 2025 the U.S. Department of Transportation no longer assumes that women-owned businesses are disadvantaged and asks them to show it individually. Our Texas HUB explainer describes the federal change. Contact the California Unified Certification Program for current steps.
Are there grants for women-owned businesses in California?
We found no statewide cash grant program reserved for women-owned businesses, and given Proposition 209 that is not surprising. Many online lists show programs such as a “California Women’s Business Council Grant” or “CalOSBA Women’s Business Grants” with set dollar ranges, but we could not find any official page for them, so we do not list them. If a list does not link to the organization that runs a grant, treat it as unverified.
What does exist is smaller and more practical:
- The Amber Grant. This national grant is open to women-owned businesses in the U.S. and Canada, including California. According to its home page, it awards three $15,000 grants every month (the Amber Grant, a Startup Grant and a Business Category Grant) and three $75,000 year-end grants for monthly winners. Older guides list $10,000 or less, which is out of date. Read the program’s own rules before applying.
- Women’s Business Centers. The California Office of the Small Business Advocate (CalOSBA) has supported a network of Women’s Business Centers. One example is the AnewAmerica Women’s Business Center in Oakland, which offers no-cost advising, financial planning and help with loan applications. Search for a center near you and ask what it offers now.
- Small Business Development Centers. California’s SBDC network gives free advising to business owners of any gender.
- Local grants. Some cities and counties run small-business grants that are open to everyone. Their open dates change, so check each city’s website.
For national programs, see our guides to grants for women entrepreneurs and SBA loans for female-owned businesses.
What could change?
Proposition 209 is part of the constitution, so only voters can change it, and they declined to do so in 2020. Some legal groups have argued that the CPUC’s utility rules also conflict with Proposition 209, but we did not find a ruling that ended the program. Federal DBE rules are also changing, and city programs in Los Angeles that recognize DBE certification may change with them. We update this page when something changes.
Frequently asked questions
Does California have a women-owned business set-aside?
No. Proposition 209 forbids the state and local governments from giving preferences based on sex in public contracting, so California does not set aside state contracts for women-owned businesses.
Is CPUC Supplier Clearinghouse certification free?
Yes. The CPUC says there is no fee, and certification is usually granted within 45 days of a complete application and lasts three years.
Do I need to live in Los Angeles County for the city’s certification?
According to the city’s FAQ, the Los Angeles certification office accepts MBE and WBE applications only from firms with their principal office in Los Angeles County.
Can I use my WBENC certification in California?
Yes. WBENC certification is used by corporate buyers, and the City of Los Angeles recognizes WBE certification from WBEC-West. It is not a state or federal set-aside status, though.
Is there a California grant for women-owned businesses?
We found no state grant reserved for women. National grants such as the Amber Grant, free advising at Women’s Business Centers and local grants open to all small businesses are the realistic options.
Sources and how we checked
- California Supreme Court, Coral Construction v. San Francisco: the text and meaning of Section 31.
- CPUC, Supplier Clearinghouse certification: cost, timing and term.
- City of Los Angeles, certification FAQ: principal office rule and recognized certifications.
- CalOSBA, AnewAmerica Women’s Business Center story.
- WomensNet Amber Grant home page: current grant amounts.
- California Secretary of State, 2020 Proposition 16 analysis: background on Proposition 209.
We read the primary sources and compared them with published guides. Where they differed we used the official source. Rules change, so confirm details with each agency before you apply. See a mistake? Email contact@businessher.com and we will correct it. This page was written by the BusinessHer.com editorial team from the California Constitution, court opinions, CPUC pages, City of Los Angeles documents and public reporting, and is general information, not legal advice.
