The HUBZone Map is Changing!
Effective July 1, 2023
What does this mean for your HUBZone certified business?
Once eligible businesses may no longer be eligible to hold a HUBZone certification as of July 1, 2023. As of that date, any business who is no longer located in a HUBZone will not qualify for this set aside.
There is a grace period.
Anyone certified before that date will remain certified until their next recertification date. That means, those businesses may continue to obtain set aside contracts being HUBZone certified.
The HUBZone Map Changes Every 5 Years.
The reason for the change is to ensure that the program serves the communities that are in dire need of assistance. Mostly, there isn’t much of the HUBZone map that differs from it’s current state. Although there have been some changes, most of the locations are still designated HUBZone areas. Anyone who has an active certification and is removed from a HUBZone may still use their certification until their annual recertification is due.
The HUBZone map will not change again until 2028.
Businesses who find themselves in a new HUBZone area can take advantage of the program and win set aside contracts with a HUBZone certification. There are certain HUBZones that may change throughout the year. These are temporary HUBZones called Governor-designated covered areas and Qualified Disaster Areas.
On the HUBZone map, there are special regions known as “redesignated areas”. The HUBZone program is required to re-categorize areas who lose their qualified status so that they have a 3 year grace period for the transition. Any new “redesignated areas” on the map will expire in July of 2026 and will lose their qualification at that time.
What does this mean for the set-aside contract you are currently working on?
Businesses that lose their HUBZone map designation are still able to work on their current contracts as usual. They will not be able to recertify as a HUBZone business due to the change in the map. However, they can relocate the principal office or hire employees within a new location that is within a HUBZone and reapply for certification.
What is the HUBZone program?
This program is designed to help promote a positive economic impact for businesses located in HUBZone map designated areas. These areas are disadvantaged communities where employment and growth opportunities are most needed. Businesses are eligible to compete for federal and state set aside contracts.
The HUBZone map designates areas that are historically underutilized business zones. Businesses in these areas are eligible to receive set aside contracts to help small businesses thrive within their HUBZone location. HUBZone certified businesses are given preferential consideration for contractual competition. A HUBZone certified business’ bid can come in up to 10% higher than their competitor and still be considered lower than the other bid. They are awarded contracts before businesses without their HUBZone certification. Check your HUBZone map to see if you are in a qualified zone.
The good thing about being in a HUBZone map location, you are allowed to hold multiple certifications at once. This gives you a double edge over your competition. Awarding a contract to both a HUBZone certified and an 8a certified business will check two of those Prime contractors’ contractual obligations.
Qualifications for the HUBZone Program
There are requirements that must be met before a business can get their HUBZone certification. First, your business must be in a specific area of the HUBZone map. The zones are labeled: Census Tract, County, Indian Land, Redesignated, Disaster Area, and Governor-Designated Covered Area. If your main office and your employees live within a HUBZone map specified area, you must pass the remaining eligibility requirements to continue with your certification.
Other requirements include but are not limited to:
- A small business in accordance with the SBA size standards
- At least 51% owned and controlled by a US citizen, a community development corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization or an Indian tribe
- Have its principal office located within a specific area of the correct HUBZone map
- At least 35% of its employees living in a HUBZone map area
Select GCR maintains a 98% approval rating on first time application submission. We take our time completing the entire application all at once and provide all the supporting documents required to fast track your application. Our certification specialists monitor your account with the SBA for any communication and respond in an appropriate manner. You can rest easy knowing your application will be approved as quick as they can.