What You Need to Know About HUBZone Certification

The federal government’s Historically Underutilized Business Zone (HUBZone) program is designed to assist small businesses in certain economically challenged areas of the country to help empower communities, create jobs, and attract private investment.

When a business is HUBZone certified through the Small Business Administration (SBA), they are eligible for exclusive contracts through set-aside opportunities. Any small business that wants to explore the potential benefits of HUBZone certification should understand what the certification entails, and the steps required to become certified.

Who Qualifies for HUBZone Certification?

The first step to finding out if your business qualifies for HUBZone certification is to make sure that your business meets the requirements for a small business, as determined by the SBA.  The SBA defines a small business either in terms of the average number of employees over the past 12 months or the average annual revenue over the past three years matched to the firm’s primary North American Industry Classification System (NAICS) Code. You can see the size standards by NAICS Code at SBA Table of Size Standards.  

Once you determine that you are considered a small business, you must then determine whether your primary place of business is in an eligible area. Eligible areas are those designated by the SBA as “historically underutilized business zones” or “HUBZones.” These areas include rural counties, non-metropolitan cities, and Indian reservations and are designated by the SBA.  You can check whether your firm is located in a qualified zone by entering your street address in the SBA HUBZone Map.

In addition to your business having its principal office located in a HUBZone, there are a few additional criteria that must also be met to qualify for certification.  More than 50% of the company must be owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian Tribe. 

Additionally, at least 35% of its employees must live in a designated HUB Zone area, although not necessarily the same zone as the business.

How To Obtain HUBZone Certification

Once you have determined that you meet all the necessary criteria, you will need to ensure that your company is registered in SAM and then apply through the SBA for official certification from the SBA’s Office of Small Business Development Centers (SBDC). The application process includes providing an overview of your company, including listing your annual sales and number of employees; submitting documents such as tax returns; certifying that all required criteria are met; and submitting a statement signed by an owner or officer verifying that the information provided is true and accurate. Once your application is submitted, the review process typically takes 90 days and clarifications may be requested by the SBA prior to approval or denial.

Conclusion:

If your small business meets all the requirements and obtains official certification from the SBA, your company will be eligible for sole source contracts and set-aside awards designated for HUBZone businesses. 

HUBZone certified businesses also get a 10% price evaluation preference, meaning their prices can be set 10% higher than competitors and still be considered equally priced.

Understanding what it takes to obtain a HUBZone certification can put your small businesses on track toward taking advantage of these exclusive opportunities available only through the HUBZone program.

FedBiz Access (“FedBiz”) has an experienced fulfillment team that takes the time to understand your business and ask questions to ensure you have a solid government contracting foundation. FedBiz is a leading government contracting business development and marketing firm that offers HUBZone and other set-aside certifications, research and engagement strategy coaching, SAM & DSBS registrations, and GSA Schedules.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.