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 additionally provides contracting opportunities to small businesses in areas such as these, as well as hiring local team members to assist with economic development projects. *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 implementing and 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 protests eligibility to receive HUBZone certification. In addition, 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.
The process to apply for a HUBZone certification can be lengthy and time consuming. Our team can help you with the application process and help save you time and headaches. Contact us to learn more.
HUBZone certification eligibility requirements
- According to SBA Size Standards, be a small business
- 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 at the following link – https://maps.certify.sba.gov/hubzone/map
- The business must be legally organized and in good standing to do business as required by all applicable federal, state, county, or city regulations in which the applicant operates.
- At least 35% of its employees must reside within a HUBZone (including the owner). Reside means to live in a primary residence for at least 180 days, or as a currently registered voter, with the intent to live there indefinitely. This can be any HUBZone – it does not need to be the same as the Principal Office.
- Cannot be owned by an irrevocable trust. Trust must be revocable, where the majority owner is the grantor, the trustee, and the sole current beneficiary of the trust.
ATTENTION ALL HUBZONE CERTIFCIATION HOLDERS!!
As of July 1, 2023, the HUBZone Map will be changing.
This effects your eligibility. For More Information Click Here
Speak With A HUBZone Certification Consultant Now to See if Your Business Qualifies!
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Benefits of HUBZone Certification
- 3% of prime contracts are mandated to 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 as a Certified HUBZone Organization includes complementary legal services, marketing & contracting opportunities, information & support utilizing you HUBZone certification, and full 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
How do you apply as a HUBZone certified small business?
The process can be cumbersome if you don’t know what you are doing. There are many supporting documents required and a long application that needs to be completed. The entire process can take months to complete.
The hardest part is staying vigilant during the process. At any time, the SBA can reach out to ask for additional documentation or clarification. They require a response within 5 days or your entire application could be denied. Having someone there for you every second of the day to monitor your progress can be invaluable to your business.
Documentation is provided by your business to the SBA to verify your compliance with the HUBZone program requirements. Not only does your business need to be within a HUBZone map designated area, it also has to meet other eligibility requirements. The SBA looks for consistency in the information on the application, documentation supporting all claims and proper verification.
Your application will easily get denied if one thing is misplaced or mistyped. Supporting documentation must be submitted in its entirety at the time of application. The SBA may and will request additional information or documents that must be submitted within 3 days of the request or your application may be denied. If you didn’t correctly name your documents according to the SBA’s file naming convention you may also be denied. Failure to dot an I, cross a T or check a box will result in denial.
For these reasons alone, the SBA recommends getting professionals to take you through the process. The best of the best is Select GCR Pro. Not only do we process certifications, we also are experts in the world of Government contracting. Our professional consultants are on hand to coach and guide you on how to find and win contracts.
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.
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