HUBZone Certification for Your Business Stimulates your Local Community’s Economy
Find Out Now if Your Business Qualifies for HUBZone Certification
The HUBZone certification program is designed to stimulate economic development and create jobs in urban and rural communities, also known as “Historically Underutilized Business Zones.” The program requires its businesses to maintain a 35% employee HUBZone residency rate, helping to boost local employment rates.*Click the HUBZone Map picture to the right to see if you’re located in a HUBZone area!
The HUBZone program is one of the Small Business Administration (SBA) programs, which is responsible for determining which businesses are eligible to receive HUBZone certification. SBA maintains a listing of qualified HUBZone small businesses that Federal agencies can use to locate vendors and protest eligibility. In addition, the SBA is responsible for reporting to Congress on the program’s impact on employment and investments in HUBZone areas.
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HUBZone Certification Contracts
There are four types of contracts that a HUBZone certification can qualify your business for:
- A competitive HUBZone contract can be awarded if the Contracting Officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.
- A sole source HUBZone contract can be awarded if the Contracting Officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The Government estimate cannot exceed $5 million for manufacturing purchases or $3 million for all other requirements.
- A full and open competition contract can be awarded with a price evaluation preference. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business, providing that the offer of the HUBZone small business is not more than 10 percent higher than that of the non-HUBZone business.
- A subcontract could be awarded by a large prime contractor. Federal rules require these contractors to include HUBZone contracting goals.
HUBZone Certification Eligibility Requirements
- Be a small business in accordance with SBA Size Standards
- The business must be 51% owned and controlled by: U.S. citizens, Community Development Corporation, an Agricultural Cooperative, or an Indian tribe
- Its Principal Office must be located within a “Historically Underutilized Business Zone,” as shown on the HUBZone map which can be found on the SBA website.
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Benefits of HUBZone Certification
- 3% of prime contracts must be awarded to a HUBZone certified business
- Competitive and Sole Source Contracting
- 10% price evaluation preference in full & open contract competitions
- Ability to bid on HUBZone set aside solicitations
- Ability to sign up with HUBZone council: includes complementary legal services, marketing & contracting opportunities, information & support utilizing your HUBZone certification, and listing of exclusive members-only services
- SBA Surety Bonding & Loan Program: HUBZone firms qualify for SBA guaranteed surety bonds on construction & service contract bids and SBA program loans for HUBZone Certified Organizations
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