The HUBZone map will be changing on July 1, 2023, and in honor of this update, we thought this would be a great opportunity to write a bit about HUBZone certification and HUBZones in general. If your small business is located in a HUBZone, there can be some government contracting opportunities that might be profitable for you.
HUBZone stands for Historically Underutilized Business Zone. This is a federal government program that was established by the U.S. Small Business Administration (SBA) to help small businesses in certain urban and rural communities gain preferential access to federal procurement opportunities, i.e., government contracts.
The program’s benefits for HUBZone-certified companies can include competitive and sole source contracting, as well as a 10% price evaluation preference in full and open contract competitions.
The HUBZone program encourages economic development in these historically underutilized business zones by providing opportunities for firms to become active participants in the federal supply chain.
You can head to SBA.gov to check and see if your business is located in a HUBZone, but, again, keep in mind, these maps will be updated in July, so the zone designation might change. For instance, some areas are listed as HUBZones after a natural disaster to help bolster the local economy after some type of devasting local event. This zone designation might end once the area has achieved more economic stability.
However, any HUBZones located in areas owned by Native American Tribes, as well as Alaska Native Corporations (ANCs) and Native Hawaiian Organizations (NHOs) likely will not be changed.
Who Is Eligible For HUBZone Certification?
In order to participate in the HUBZone program, your business has to be located in a HUBZone, naturally, but the business also must be 51% owned (and controlled) by United States citizens, an NHO, an ANC, a Native American tribal government, an agricultural cooperative or a community development cooperation.
Additionally, at least 35% of the employees must reside in a HUBZone for at least 180 days before applying for certification. These employees don’t necessarily need to live in the same HUBZone where your business is located, but they must be residing in a HUBZone in general.
5 Steps To HUBZone Certification
- SAM Registration
As with all governing contracting opportunities, the first step is to register your business in the System for Award Management (SAM). This is the government’s database for all government contractors. The team at Federal Contractor Registry can complete your SAM registration (and SAM renewals) quickly and accurately so that you can start bidding on government contracting jobs as quickly as possible.
SAM registration can be the most daunting part of this equation, and while the government does not charge a fee to register your business in SAM, it can take 10 or more hours to complete the application. Many people simply find it easier to hire a third-party registration service to avoid the hassles and headaches associated with SAM registration.
- SBA Registration
We encourage all small businesses, whether or not the firms are located in HUBZones, to sign up with the SBA. HUBZone certification is just one program that exists to help small businesses flourish and find federal contractor jobs. As part of our SAM registration services, we also will help you sign up with SBA and link your SBA account to your SAM account, as well.
- Apply For HUBZone Certification
Once you have an active SAM account and an active SBA account, you can go into SBA’s system and begin registering for HUBZone certification. Once you apply, the SBA will send you an email asking you to verify your application. In some cases, this can take several days, and it is recommended that you check your spam folder as well as your inbox for this email.
- Submit All Necessary Documents
You will need to provide SBA with a myriad of documentation to attain HUBZone certification. Some of the documentation includes basic information about your location and employees as well as lease agreements, utility bills, payroll records, corporate documents, proof of U.S. citizenship and more.
- Check Your Status
While you may receive an email regarding your HUBZone certification, it’s also important to check your status in SAM as well as the SBA’s Dynamic Small Business Search (DSBS). The DSBS is a database that government procurement agents can use to search for small businesses for contracting purposes. Government agencies are required to set aside a portion of their contracting jobs specifically for small businesses. These are often just called “set-aside” contracts.
Recertify Your HUBZone Status Yearly!
HUBZone certification expires every year, so you will need to provide the SBA with updated documentation to renew your certification. You also will need to renew your SAM registration every year, and Federal Contractor Registry can help with that process.
Additional SBA Programs
Even if your business does not qualify for HUBZone certification, there may be other set-asides for which you qualify. For instance, if your business is 51% owned and controlled by a woman or women, it may qualify for the Woman-Owned Small Business (WOSB) or Economically-Disadvantaged Woman-Owned Small Business (EDWOSB) set-asides.
There are also set aside programs for veterans, and you also might qualify for the 8(a) Business Development program. To qualify for this program, a small business must be 51% owned and controlled by U.S. citizens that belong to a historically socially or economically disadvantaged group, such as citizens that have faced discrimination due to race, color, creed, religion, sexual orientation, gender or perhaps a disability.
Get Started With SAM Registration!
Whether you want to opt for HUBZone certification, or another SBA set aside, SAM registration is the first step, and the team at Federal Contractor Registry can help. We can complete your SAM registration quickly and accurately, help you sign up with SBA and help you complete other crucial tasks, such as applying for the Unique Entity Identifier. If you wish to have us handle SAM registration, just click on the green New Registration tab on our homepage to get started.