HUBZone stands for Historically Underutilized Business Zone.
What is the HUBZone Program?
The HUBZone Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. The program resulted from provisions contained in the Small Business Reauthorization Act of 1997.
How does a firm qualify for this program?
To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria:
- It must be a small business by SBA standards;
- It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, or 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; and
- At least 35% of its employees must reside in a HUBZone. Existing businesses that choose to move to qualified areas are eligible. To fulfill the requirement that 35% of a HUBZone firm’s employees reside in the HUBZone, employees must live in a primary residence within that area for at least 180 days or be a currently registered voter in that area.
How do I find out if my business is in a HUBZone?
Simply log onto the web at http://www.sba.gov/hubzone and select the option: “Are You in a HUBZone?” You can search the system using several designations, including a specific address, a county or a full state.
For additional questions about the HUBZone program, go to the SBA HUBZone home page.
What is a HUBZone set-aside?
A HUBZone set-aside is the reserving of an acquisition exclusively for participation by HUBZone small business concerns. For a procurement to be totally set-aside for HUBZone small business concerns, a contracting officer must have a reasonable expectation that offers will be received from two or more HUBZone small business concerns and the award will be made at fair market price. For more information on HUBZone set-asides, go to FAR Subpart 19.1305.