HUBZone

A "HUBZone" is an area that is located in one or more of the following:

• A qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);
• A qualified "non-metropolitan county" (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80% of the state median household income or with an unemployment rate of not less than 140% of the statewide average, based on U.S. Department of Labor recent data; or
• Lands within the boundaries of federally recognized Indian reservations.

The SBA regulates and implements the HUBZone Program. The SBA does the following:

• Determines which businesses are eligible to receive HUBZone contracts
• Maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate vendors
• Adjudicates protests of eligibility to receive HUBZone contracts
• Reports to the Congress on the program's impact on employment and investment in HUBZone areas

To qualify 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, or 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
• At least 35% of its employees must reside in a HUBZone

The program’s benefits for HUBZone-certified companies include

• Competitive and sole source contracting
• 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.

The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns.