The Small Business Administration recently announced an expansion of the businesses eligible for their Historically Underutilized Business Zone (HUBZone) program. The federal government has established a goal of annually awarding 3% of federal contract dollars to HUBZone certified businesses. Being a HUBZone certified business has other government contracting advantages including bidding on contracts limited to certified businesses, receiving preferential treatment for open contracts; and getting a 10% price evaluation preference in open contract bidding.
To qualify as a HUBZone business the principal office and at least 35% of its employees must be located in a HubZone. In addition, the business needs to be at least 51% owned and controlled by U.S. citizens (or certain other qualified entities), and be considered a small business according to SBA size standards.
The SBA will be changing qualifying HUBZone areas effective July 1, 2023, by adding many new locations, including locations in the San Francisco Bay Area.
Unfortunately, the new map also identifies some communities that will be losing their HUBZone designation. These areas will have until July 1, 2026 to prepare.
Check if your business location qualifies here: SBA Preview HUBZone Map
After determining if your business qualifies the next step is to be certified by the SBA. See, Apply to get certified as a HUBZone small business, for additional information.
For additional questions, contact your local SBA regional and district office or you can contact the HUBZone Help Desk via email at hubzone@sba.gov.