What Is the HUBZone Program?
HUBZone stands for Historically Underutilized Business Zones, referring to small businesses that reside in underperforming business zones. Being a certified HUBZone business qualifies owners to contract preferences and access to federal contracting opportunities.
The program works by providing HUBZone maps business owners can use to determine their eligibility, while the government maintains a list of qualifying businesses that federal agencies can use as vendors. HUBZone certified companies can receive competitive and sole source contracting opportunities as well as subcontracting. The goal of this program is to ensure 3% of all federal prime contracts go to HUBZone certified firms.
Watch this video to learn more about the HUBZone program:
HUBZone Eligibility Requirements
Some of the eligibility requirements include:
- SBA standard small business
- Owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe
- Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act
- At least 35% of its employees must reside in a HUBZone for at least 6 months
HUBZone Application Requirements
Some of the information required to apply for HUBZone Certification includes:
- Ownership information
- Recent business financials
- Tax returns
- Bonding information
- Employee information
- Two months of payroll information as of the application date
- General business information
Popular HUBZone Industries
The top ten categories for HUBZone contracts are:
- Commercial and Institutional Building Construction
- Heavy Engineering and Civil Engineering Construction
- Computer Related Services
- Highway, Street, and Bridge Construction
- Facilities Support Services
- Engineering Services
- Security Guards and Patrol Services
- Research and Development
- Consulting Services
- Men’s and Boy’s Apparel
Frequently Asked Questions about the HUBZone Program
What does HUBZone mean?
HUBZone stands for Historically Underutilized Business Zone and is an area designated by the federal government for set aside contracts. These contracts are meant to boost business revenue and employment in the HUBZone area.
How do I know if my company is in a HUBZone?
Click here and enter your address to see if your company is in a HUBZone or look for a HUBZone to start or relocate your business.
What are set aside contracts?
Set aside contracts are Federal requests for proposals or RFPs that can only be awarded to a firm that meets the designated certification qualification. Having the certification greatly increases your chances of success since you will only compete with other qualified certified firms. HUBZone firms also receive a 10% price evaluation preference with the federal government.
How do I qualify for the HUBZone?
There are many requirements, see the application guide below, but the most important are that the business main office is located in a HUBZone and that 35% of your qualifying employees live in a HUBZone. Employees don’t have to work in the same HUBZone as the main office, but they must live in a HUBZone designated area. Employees must work a minimum of 40 hours per month, have proof of HUBZone home address for at least 6 months, and be on the payroll. Two months of payroll are required.
How many employees do I need to qualify?
There is no employee maximum or minimum. A one-person Company can apply and be successful.
How do I apply for the HUBZone?
The application has two parts: one part is the electronic application that is timed, and another part that is the portal for uploading documents. Click here for details.
How long does it take to get certified as a HUBZone company?
It depends on how busy the SBA is at the time of submission, but in general, it takes about 4 to 6 months.
Contact us today to see how we can help you with your HUBZone Certification!
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