The Historically Underutilized Business Zones (HUBZone) program provides federal contracting preferences to small businesses located in economically distressed areas. If your Texas business operates in a qualifying zone and meets the employee residence requirements, HUBZone certification can open significant federal contracting opportunities.
HUBZone Eligibility Requirements
To qualify for HUBZone certification, your business must meet all of the following requirements:
- Small business: Must qualify as a small business under SBA size standards for your industry.
- Principal office location: Your principal office must be located in a HUBZone. Use the SBA's HUBZone map tool to check whether your address qualifies.
- Employee residence: At least 35 percent of your employees must live in a HUBZone. The qualifying zone does not need to be the same one where your office is located.
- Ownership and control: The business must be owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, a Native American tribal government, or a Native Hawaiian organization.
How to Check Your Location
The SBA maintains an online HUBZone map at maps.certify.sba.gov. Enter your business address and the residential addresses of your employees to determine whether you meet the location and residence requirements.
In Texas, HUBZones include qualified census tracts, qualified non-metropolitan counties, redesignated areas, and base closure areas. Many rural Texas counties qualify, as do census tracts in urban areas with high unemployment or low income.
Application Process
- Register on SAM.gov: You must have an active SAM.gov registration before applying. SAM.gov guide.
- Create a certify.sba.gov account: The HUBZone application is submitted through the SBA's online certification portal at certify.sba.gov.
- Complete the application: Provide business information, ownership details, employee data, and supporting documentation.
- Upload supporting documents: Required documents typically include lease or deed for the principal office, employee roster with residential addresses, payroll records, and proof of business ownership.
- Submit and wait for review: The SBA reviews applications and may request additional documentation. Processing times vary but typically take 60 to 90 days.
Benefits of HUBZone Certification
- Competitive and sole-source federal contracting opportunities
- 10 percent price evaluation preference in full and open competitions
- Access to HUBZone set-aside contracts
- The federal government has a 3 percent goal for HUBZone contracts
Maintaining Certification
HUBZone certification requires ongoing compliance. You must continue to meet the principal office and employee residence requirements. The SBA conducts program examinations to verify continued eligibility. If you move your office or your employee composition changes, you must update your certification information.
HUBZone vs. Texas HUB
The federal HUBZone program is different from the Texas HUB (Historically Underutilized Business) program administered by the Texas Comptroller. Texas HUB provides state contracting preferences, while HUBZone provides federal contracting preferences. Businesses can hold both certifications simultaneously. Compare HUB and federal certifications.
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