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HUBZone Certification is Better than You Think

There are many small businesses located in HUBZone counties that can greatly benefit from obtaining and then utilizing a HUBZone Certification. With over $1MM in average sales annually theoretically on the line now, it might be a good time to determine if your firm would benefit from a HUBZone Certification.   


HUBZone Standard Advantage

A HUBZone is a great certification to hold with the average HUBZone firm conducting north of $1MM per year in Federal Sales. This figure is more than 3x the sales for a small business that does not have a Federal Certification or VA Verification.


1.Contracting Opportunities:  The government limits competition for certain contracts to businesses in historically underutilized business zones. These contracts are called set-aside contracts and only HUBZone firms are eligible to bid on these contracts.


2.Price Evaluation:  It also gives preferential consideration to those businesses in full and open competition. HUBZone-certified businesses also get a 10 percent price evaluation preference in full and open contract competitions.


3.Federal Spending Goal:  There is a congressional goal that 3% of all federal procurement is spent with HUBZone firms.  This works out to be approximately $10B annually.


HUBZone Power Advantage

A HUBZone can be combined with a GSA Schedule to create an additional enhancement. HUBZone firms with GSA Schedule gain $2.2MM in federal sales from this contracting vehicle. In the GSA realm, it is also interesting to note that HUBZone firms maintain their 3x advantage over their non-GSA small business peers.    


For firms seeking these types of advantages, the next action to take would be to go over the qualifications for the HUBZone Certification.


HUBZone Qualifications



35% of the employees of the firm must reside within a Federally Designated HUBZone Area. The residence is established based upon the employee’s voter registration. The link to the HUBZone Map Site is: https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5


For an employee who resides within a HUBZone to count towards the certification they must work at least 40 hours per month.



The primary business location for purposes of HUBZone is the location where the greatest number of employees work. This location must be located within a HUBZone.



If the firm attempting to qualify for HUBZone is deemed by the SBA to be affiliated with another entity, then the combined entity must meet the rules for HUBZone.



The firm must be classified as a small business based upon SBA Size standards. 



The firm must be owned by an individual or individuals where 51% or more of the ownership are US Citizens. The firm cannot be owned by another corporation.


If you have interest in exploring your firm’s eligibility for the HUBZone Certification and/or GSA Schedule, and the ridiculous potential you may have in federal contracting, I always recommend contacting an industry expert such as ez8a or Advance GSA. Neither charge for an initial consultation.


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