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The Benefits of HUBZone Certification Exceed Your Expectations

Many small businesses located in the HUBZone area can greatly benefit from obtaining and utilizing a HUBZone Certification. With over $1MM in sales, now might be a good time to determine if a HUBZone Certification would benefit your business.


HUBZone Standard Advantage


HUBZone is a great certification with the average HUBZone business earning about $1MM in federal sales per year. This figure is approximately 3 times the sales of small businesses without a federal certification or VA verification.


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


2.Price Evaluation:  It also gives priority to companies in full and open competition. HUBZone certified companies can also receive a 10% discount on bids in full and open contract competitions.


3.Federal Spending Goal:  Congress has a goal of 3 percent of all federal procurement in the HUBZone. That's about $10 Billion a year.


HUBZone Power Advantage



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.



HUBZone's main business is the workplace with the largest number of employees. This location must be in the HUBZone.



If SBA determines that a business seeking to qualify for a HUBZone is affiliated with another entity, the combined entity must comply with HUBZone regulations.



The business must be classified as a small business under the SBA's size standards.



The company must be owned by a US citizen or individuals with 51% or more ownership. A company cannot be owned by another company.


If you have interest in exploring your firm’s eligibility and potential utilizing HUBZone, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.


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