For a small business looking to exacerbate their business development potential, being a part of the SBA’s HUBZone Program can be that accelerator. Coupling an 8(a) Certification with a HUBZone Certification multiplies one’s “preferential access to federal procurement opportunities”. HUBZone Qualifications are the following:

1. 51% of the firm must be owned and controlled by someone who is a U.S. Citizen.
2. The firm must be a small business by SBA size standards.
3. The firm’s principal office must be located within a HUBZone.
4. 35% or more of the firm’s employees must reside within a HUBZone.

I will go over examples that cover items 3 and 4 on this list.

Example 1

For this example, the firm has only one location and that location is within a HUBZone.  The firm has 7 employees.

3 employees reside within the HUBZone.
4 employees reside outside of the HUBZone.

Check Qualification #3:  The firm’s primary office location is located within a HUBZone.  [YES]
Check Qualification #4:  3 out of 7 employees reside within a HUBZone or 42.85%.  [YES]

Result:  The firm would qualify if it meets all other HUBZone qualification.

Example 2

In this example, the firm has two locations with 13 total employees. Location A is located within the HUBZone and has 5 employees, 3 of which reside in a HUBZone.  The firm also has a second location B, with 8 employees, 4 of which residing in a HUBZone.

Check Qualification #3:  The firm’s primary office location is B which is not located within a HUBZone.  [NO]
Check Qualification #4:  7 out of 13 employees reside within a HUBZone or 53.84%.  [YES]

Result:  The firm would not qualify as office B, the principal office, does not fall within a HUBZone. It fails this test even though over 35% of this office’s employees reside within a HUBZone.

Example 3

In this example, the firm has two locations with a total of 13 employees. Office A has 9 employees in which 3 employees reside within a HUBZone. Office B has 4 employees all of which reside within a HUBZone.

Check Qualification #3:  The firm’s primary office location A is located within a HUBZone.  [YES]
Check Qualification #4:  7 out of 13 employees reside within a HUBZone or 53.84%.  [YES]

Result:  The firm would qualify if it meets all other HUBZone qualification.

If you would like to determine whether or not you qualify for HUBZone, the following link will connect you to the HUBZone maps, which are interactive. Just enter your address at the top, click on “find” and the map for your area will appear.

https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5

If you are interested in exploring whether your small business qualifies for the HUBZone Program, regardless of whether you currently have an 8(a) Certification or not, and the potential that exists within these SBA Programs, I always recommend contacting an industry expert such as ez8a. They do not charge for an initial consultation.