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are required by the HUBZone
Empowerment Act to contract with HUBZone certified small businesses for more than 3% of their budget in the form of prime contracts to HUBZone firms. The government has made some progress towards these goals, but by and large remains below them. Because the program
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represents only 3% of the contracts awarded by federal agencies, the program has received an equivalent level of attention. In 2018, HUBZone companies started to become more proactive in trying to get opportunities 'set-aside' for HUBZone-certified companies. Through organizations such as the
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The program has not generated enough HUBZone contract dollars to have an impact on a national scale. When spread over an eight-year period across 2,450 metropolitan areas and counties with qualified census tracts, qualified counties, and Indian reservations, $ 6 billion has a limited
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The US federal government approved $ 13+ billion dollars for annual distribution to HUBZone firms. Currently, approximately half of the money is actually being distributed. Many qualified businesses still encounter barriers to entry and are intimidated by the
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128:(SBA) program for small companies that operate and employ people in Historically Under-utilized Business Zones (HUBZones). The HUBZone program was created in response to the HUBZone Empowerment Act created by the
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The primary goal of the program is to create incentives for the U.S. federal government to do contracting with businesses that operate and create jobs in communities with statistically proven economic needs.
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The business must be at least 51% owned and controlled by U.S. citizens, or a
Community Development Corporation, an agricultural cooperative, or an Indian tribe (including Alaska Native Corporations).
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Businesses need to re-certify for the HUBZone program every three years. There is no limit to the length of time a business can continue to re-certify as long as it continues to qualify.
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HUBZone set-asides are the most frequently used tool to award HUBZone contracts. HUBZone sole source and price preferences were least often used by contracting officers.
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The first business to receive a contract under the HUBZone program's simplified acquisition program was
Garrett Container based in Accident, Maryland.
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The firm's principal office (the location where the greatest number of employees perform their work, excluding contract sites) must be in a HUBZone.
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To determine if a location (residence or business) is in a HUBZone, the SBA web site has a feature the make this determination found at
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in 1998. Based on the Act, small businesses will be designated as HUBZone certified if they have the following criteria:
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Numerous legislators created and continue to support the HUBZone program. However, it is widely held that U.S. Senator
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Progress on HUBZone and all small business contracting rates is available on the government's
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HUBZones are 'historically under-utilized business zone', located within one or more:
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313:"Applying for the HUBZone Program โ The U.S. Small Business Administration โ SBA.gov"
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On average, about 3,000 entities register for HUBZone certification each year.
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360:"The HUBZone Program Report | The U.S. Small Business Administration | SBA.gov"
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Important Change to HUBZone
Definition of "Employee" Occurred May 3, 2010
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Lands within the external boundaries of an Indian reservation;
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35% of the firm's total workforce must reside in a HUBZone.
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