An estimated 4,600 current HUBZone Small Businesses are sharing $17.5 Billion per year in annual federal sales. This translates into $3.8 Million in federal sales per year which puts the HUBZone program in the position of passing the $4 Million per firm threshold in average annual sales for the first time.

HUBZone Advantages

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: A congressional goal is that 3% of all federal procurement is spent with HUBZone firms.

HUBZone Qualifications

Employees

35% of the employees of the firm must reside within a Federally Designated HUBZone Area. The residence is established based on the employee’s voter registration. The link to the HUBZone Map Site is: https://maps.certify.sba.gov/hubzone/map#center=44.722800,-103.249700&zoom=4

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

Location

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.

Affiliation

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.

Size

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

Citizenship

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.

The HUBZone program offers significant benefits for small businesses, with certified firms averaging $3.8 Million in federal sales per year. If you're interested in learning more about the program and how to qualify, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.