FedBiz’5 Podcast | Episode 22: Benefits of the HUBZone Certification
Benefits of the HUBZone Certification
To encourages economic development in Historically Underutilized Business Zones – “HUBZones” – this SBA set-aside certification provides federal contracting opportunities to qualified small businesses located in distressed areas to help empower communities, create jobs, and attract private investment.
In this episode of FedBiz’5 we are hosting Amanda Bach from FedBiz Access to discuss the benefits of the HUBZone certification.
The goal of the HUBZone program is to fuel small businesses in historically underutilized business zones in urban and rural communities by awarding at least 3% of federal contract dollars to HUBZone certified companies each year.
The HUBZone Act of 1997 was created in the effort to increase employment and investment opportunities in historically underutilized business zones to help them develop economically.
These areas include rural non-metropolitan counties, land within the boundaries of Indian reservations, and other designated urban areas in need of economic development. These areas may also include those affected by natural or manmade disasters.
These areas are designated by the Small Business Administration (“SBA”) and can be identified in the SBA HUBZone Map by entering the street address.
There is currently a shortage of small businesses, and the SBA has only reached approximately 2% of its total federal spending with HUBZone certified businesses instead of its target goal of at least 3%. The SBA is actively seeking businesses that are operating, qualified, and certified as a HUBZone business. So, having that HUBZone certification drastically decreases your competition in the government market as a small business.
Additionally, because there is such a shortage of HUBZone certified small businesses, government contracting officers give preferential consideration to these businesses in full and open competition. HUBZone certified business are eligible for sole source contracts and set-aside awards. HUBZone certified businesses also get a 10% price evaluation preference, meaning their prices can be set 10% higher than competitors and still be considered equal pricing.
To qualify for the HUBZone certification the small business must meet the following criteria:
- Fall within the small business qualifications set by SBA standards
- Be a for-profit small business
- Be at least 51% owned and controlled by a U.S. citizen(s)
- Primary location within a designated HUBZone
- At least 35% of all employees must reside within a designated HUBZone
FedBiz Access has over 21 years of experience working with companies to help them win business by ensuring their research, engagement strategy, registrations, set-aside certifications, and GSA Multiple Award Schedules are current, complete, and compliant.
