Understanding the HUBZone Program

The Historically Underutilized Business Zone (HUBZone) program was added to the Small Business Reauthorization Act of 1997. This particular program falls under the U.S Small Business Administration. the program encourages economic development in historically underutilized bussiness zones - HUBZones- through the establishment of prefereces.

How the HUBZone Program Works

  • Determines which businesses are eligible to receive HUBZone contracts.
  • Maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate vendors.
  • Adjudicates protests of eligibility to receive HUBZone contracts.
  • Reports to the Congress on the program’s impact on employment and investment in HUBZone areas.

Qualifying for HUBZone

Make sure to review the HUBZone Primer to understand the HUBZone requirements. 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, 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.

Benefits of the HUBZone Program

The program’s benefits for HUBZone-certified companies include:

  • Competitive and sole source contracting.
  • 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.

***The Federal Government has a goal of awarding 3% of all dollars for Federal Prime Contracts to HUBZone-certified small business concerns.***

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