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-Small Business > Historically Underutilized Business Zone Small Business Program (HUBZone)
Historically Underutilized Business Zone Small Business Program (HUBZone)

Historically Underutilized Business Zone Small Business Program (HUBZone)

Historically Underutilized Business Zone Small Business Program (HUBZone)

Overview:

The Historically Underutilized Business Zones (HUBZone) Program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the Small Business Administration (SBA) and encourages economic development in HUBZones. Its purpose is to promote economic development and employment growth in distressed areas by providing Small Business Concerns (SBC's) in those areas access to more federal contracting opportunities.

Program benefits include restricted competition/set-asides and sole-source awards for federal procurements, and price evaluation preference on unrestricted procurements.

The Department of the Navy (DON) target award is 1.5% of its prime contracting dollars to HUBZone businesses. The DON Office of Small Business Programs (OSBP) is committed to providing assistance to HUBZone small businesses in doing business with the Navy.

Eligibility Criteria:

To be eligible for the program, a business (except tribally-owned concerns) must meet the following criteria:

  • It must be a small business by SBA standards.
  • It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative or an Indian tribe.
  • Its principal office must be located within a "Historically Underutilized Business Zone", which includes lands considered "Indian Country" and military facilities closed by the Base Realignment and Closure Act. (A principal office is the location where the greatest numbers of employees at any one location are performing work, with the exception of the construction and service industries.)
  • At least 35% of its employees must reside in a HUBZone. Reside means to live in a primary residence at a place for at least 180 days, or as a currently registered voter, and with intent to live there indefinitely.

Firms that are owned in whole or in part by Indian Tribal Governments or corporations wholly owned by Indian tribal Governments, at the time of application must either:

  • Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone; or
  • Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and the concern will "attempt to maintain" the applicable employment percentage stated above during the performance of any HUBZone contract it receives.

Certification:

Participation in this program requires SBA certification. For application procedures visit http://www.sba.gov/content/applying-hubzone-program

 
 

Resources:

Federal Acquisition Regulation (FAR) Subpart 19.13

http://www.acquisition.gov/far/current/html/Subpart%2019_13.html

Am I located in a HUBZone?

http://map.sba.gov/hubzone/maps

HUBZone Council

http://www.hubzonecouncil.org/clubportal/ClubStatic.cfm?clubID=528&pubmenuoptID=29458

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