If you own and operate a business located in a Historically Underutilized Business Zone, or HUBZone, you may be eligible for special government contracts. At Federal Contractor Registry, we can help with HUBZone Certification, but first, let’s take a look at this option as well as other certification options for small business owners.
Understanding The Small Business Set Aside
The Small Business Administration (SBA) provides certification for many different types of small businesses, and the federal government sets aside a portion of its government contracting jobs specifically for certified small businesses. These are usually just called “set asides,” and there are several different options, including:
- HUBZone Certification
- Veteran-Owned Small Business (VOSB Certification)
- Service-Disabled Veteran-Owned Small Business (SDVOSB Certification)
- Woman-Owned Small Business (WOSB Certification)
- Economically Disadvantaged Woman-Owned Small Business (EDWOSB)
- Small Disadvantaged Business (SDBs)
- 8(a) Business Development Program (aka 8a Certification)
Keep in mind, if you do not qualify for any of these programs, you can still sign up with the SBA as a general small business. There are plenty of contracting opportunities for small businesses, even if you do not qualify for these specific set-aside contracts.
The advantage of the aforementioned set-asides is that you often can gain access to federal sole-source contracting opportunities and competitive contracts that mid-sized and large businesses cannot access because they limit bidding just for small businesses. You also have the option of bidding on other federal contracts, including those open to all businesses, provided you can meet the requirements of the contract.
What Is HUBZone Certification?
HUBZones are located in areas that the federal government identifies as economically distressed. These zones are chosen to help boost business growth and job creation in communities that, historically, have struggled financially.
HUBZones often include low-income urban neighborhoods and rural areas with low population and limited economic activity. All federally recognized tribal lands also qualify as HUBZones.
Additionally, areas where military bases have been closed often qualify, as these closures can have a huge impact on the local economy. Furthermore, if your vicinity was impacted by a major disaster (fire, hurricane, etc.), the area could be designated as a temporary HUBZone to aid with recovery and rebuilding efforts.
In order to qualify for HUBZone certification, you must meet ALL of the following criteria:
- You Must Own A Small Business
SBA determines whether or not a business qualifies as small, and this is determined by either your revenue or the number of employees, or both.
- Business Owner Status
The business must be 51% or more owned and controlled by United States citizens, a Community Development Corporation, a Native Hawaiian Organization, an Alaska Native Corporation, or a federally recognized Native American/Indian tribe.
- Location
The principal office for your business must be in a designated HUBZone. This is the office where the majority of your employees work. So, if you have offices in other locations, not in HUBZones, you may qualify if most of your employees work in an office located inside a HUBZone.
- Employee Residence
Additionally, at least 35% of your employees must reside in a HUBZone. It does not have to be the HUBZone where your principal office is located, but you must be able to document that 35% or more of your staff lives in a HUBZone.
If you meet these criteria, you are likely eligible for the HUBZone program. Only HUBZone-certified companies can bid on contracts with a HUBZone set aside. You also will need to complete registration in the System for Award Management (SAM), and we can help with this process.
Do I Qualify As A Small Business?
The SBA sets size standards for all types of small businesses, and, in many cases, even if you have dozens or even 100+ employees, you will still qualify as a small business. To check, head to https://www.sba.gov/federal-contracting/contracting-guide/size-standards/size-standards-tool.
To determine whether or not you qualify, you will need to know your North American Industry Classification System codes. To find your codes, head to www.census.gov/NAICS. These codes describe the specific goods or services that you can provide to the federal government.
Where Can I Find A HUBZone Map?
You can find a HUBZone map on the SBA website at https://maps.certify.sba.gov/hubzone/map. Once you head to that page, just type in your physical address to see if your business is located in a HUBZone.
How Long Does It Take To Get HUBZone Certification?
It can take some time to gather all of the documentation needed to apply for the HUBZone program. Once you have submitted the paperwork, which will include everything from proof of residency in a HUBZone, financial statements, and more, it typically takes about 60-90 days to gain approval from SBA. You will also need to recertify your HUBZone status every three years.
SAM Registration: The Gateway to Federal Contracting
While SBA government contracting can be very profitable, applying for set-aside status is just one step of the process. Any business owner who wishes to bid on federal contractor jobs must also complete SAM registration, and we can help.
The System for Award Management (SAM) is the federal database that includes information about every government contractor. You must have an active SAM account to bid on any federal contracts or to apply for federal grants.
The government does not charge a fee to complete SAM registration, but it is a very complex process and can take 12 hours or more to complete the application. If you make any mistakes, this will delay your acceptance. Because of the complexities associated with SAM registration and SAM renewal, many business owners hire a third-party registration service to complete the process.
At Federal Contractor Registry, we provide fast and 100% SAM Registration services for all types and sizes of businesses. We handle hundreds of registrations every year, as well as SAM renewals. Your registration must be renewed every year, and we recommend renewing at least six weeks before your expiration date to ensure that your account does not deactivate. An inactive account means you cannot work with any federal agencies.
In addition to completing your registration, we can help you sign up with SBA and determine which set-asides might be the best fit for your small business, including HUBZone certification, WOSB, SDVOSB or other programs. If you are ready to get started with government contract jobs, just click on the New Registration tab on our homepage.