Underutilized Business Zones (HUBZone) program helps small businesses in
urban and rural communities gain preferential access to federal
procurement opportunities. These preferences go to small businesses that
obtain HUBZone certification.
In fiscal year 2017
federal agencies obligated nearly $3 billion in sole source or set-aside
contracts to firms participating in the HUBZone program. Created in
1997, the program provides federal contracting assistance to small
businesses located in economically distressed areas (HubZones)
with low income levels or high unemployment rates.
Qualified businesses in
these areas are eligible to bid on federal prime contracts and
subcontracts available exclusively to program participants, in addition
to benefiting from other contracting preferences.
SBA must certify that
a small business meets the criteria
to be a HubZones qualified businesses.
HUBZone Small Business
The Historically Underutilized Business
Zone (HUBZone) Program is designed to stimulate economic development
in urban and rural communities by providing contracting preference
to small businesses located in such zones. "HUBZone" means a
historically underutilized business zone that is an area located
within one or more qualified census tracts, qualified
nonmetropolitan counties, or lands within the external boundaries of
an Indian reservation.
In order to qualify, a firm must be
owned and controlled by a U.S. citizen, be located or have its
principal office located within a designated HUBZone area, and
certify that at least 35 percent of its employees are HUBZone
residents. In order to qualify, you must be a small business
concern and certified by the Small Business Administration that your
principal office is located in a HUBZone. The certification is good
for a 3-year period; however; a firm must self certify annually to
SBA that it remains a HUBZone entity.
Log onto the Web at
scroll down to �How do I determine if an address or area is in a
HUBZone?� You can search the system using several
designations, including a specific address, a county, or a full
program promote economic development and employment growth in distressed
areas by providing access to more federal contracting opportunities
through the establishment of preferences.
The program falls under the
guidance of the U.S. Small Business Administration.
SBA does the following:
businesses are eligible to receive HUBZone contracts.
Maintains a listing of
qualified HUBZone small businesses that federal agencies can use to
Adjudicates protests of eligibility to receive
Reports to the Congress on the program's impact on
employment and investment in HUBZone areas.
Benefits of the HUBZone Program:
Competitive and sole source contracting.
10% price evaluation
preference in full and open contract competitions, as well as
Eligibility for HUBZone status:
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