The Texas Historically Underutilized Business (HUB) Program is one of the most valuable — and most underutilized — resources available to Texas business owners. HUB certification is free, the application process is straightforward, and the benefits include access to billions of dollars in state contracting opportunities.
This guide explains what Texas HUB certification is, who qualifies, how to get certified, and the concrete procurement advantages it provides. Whether you are a minority-owned business, woman-owned business, veteran-owned business, or service-disabled veteran-owned business, HUB certification can open doors that are otherwise difficult to access.
What Is the Texas HUB Program?
The Texas HUB Program is a state procurement program administered by the Texas Comptroller of Public Accounts. Its purpose is to promote full and equal business opportunity for all businesses in state contracting. The program requires Texas state agencies to make a good faith effort to include HUB-certified businesses in their procurement activities.
The program was created by the Texas Legislature and applies to all state agencies, including universities, health systems, and other state-funded entities. Texas has one of the most active state HUB programs in the country, and state agencies spent billions of dollars with HUB vendors in recent fiscal years.
Who Qualifies for HUB Certification?
To qualify for Texas HUB certification, your business must meet all of the following criteria:
- Texas presence: The business must have its principal place of business in Texas, or the owner must be a Texas resident.
- For-profit entity: The business must be a for-profit entity. Nonprofits are not eligible.
- 51% ownership: The business must be at least 51% owned by a person or persons who qualify under one of these groups:
- Minority-owned: Black American, Hispanic American, Asian Pacific American, Native American, or American woman (any ethnicity)
- Veteran-owned: A veteran of the U.S. Armed Forces who served on active duty and was discharged or released under conditions other than dishonorable
- Service-disabled veteran-owned: A veteran with a service-connected disability as determined by the VA
- Active management: The qualifying owner must actively participate in the control, operations, and management of the business.
- Size standards: The business must meet the SBA size standards for its industry (based on either employee count or annual revenue, depending on the NAICS code).
How to Apply for HUB Certification
The HUB certification application is submitted through the Texas Comptroller's Statewide HUB Program. Here is the step-by-step process:
Step 1: Gather Required Documents
Before starting the application, prepare the following documents:
- Completed HUB application form
- Personal net worth statement for each qualifying owner
- Federal tax returns for the business (most recent year)
- Articles of incorporation, partnership agreement, or organizational documents
- Proof of Texas residency or business presence
- Proof of ethnicity, gender, veteran status, or disability status as applicable
- Resume or biographical sketch showing relevant experience and active management
- Business licenses and permits
Step 2: Submit the Application
Applications can be submitted online through the Comptroller's HUB portal, by mail, or by fax. The online portal is the fastest method and allows you to track your application status. There is no application fee — HUB certification is completely free.
Step 3: Review and Certification
The Comptroller's office reviews the application and supporting documents. They may request additional information or clarification. Processing times vary, but the Comptroller targets completing reviews within 90 days. If approved, you will receive your HUB certification, which is valid and must be renewed periodically.
Step 4: Register in the HUB Directory
Once certified, your business is listed in the Centralized Master Bidders List (CMBL) / HUB Directory. State agencies use this directory to identify HUB vendors when making purchases. Make sure your listing accurately reflects your capabilities, NAICS codes, and the goods or services you provide.
Procurement Advantages of HUB Certification
Agency Participation Goals
Texas state agencies are required to make a good faith effort to meet HUB utilization goals. The Comptroller sets statewide goals for each procurement category:
- Heavy construction: 11.2% HUB participation goal
- Building construction: 21.1% HUB participation goal
- Special trade construction: 32.9% HUB participation goal
- Professional services: 23.7% HUB participation goal
- Other services: 26.0% HUB participation goal
- Commodities: 21.1% HUB participation goal
These are goals, not quotas — agencies are not required to award a specific percentage to HUB vendors. However, agencies must document their good faith efforts to reach these goals, which creates meaningful opportunities for HUB-certified businesses.
Subcontracting Opportunities
When state agencies award contracts above certain thresholds, they often require the prime contractor to submit a HUB Subcontracting Plan. This plan must demonstrate good faith efforts to subcontract portions of the work to HUB vendors. As a HUB-certified business, you are positioned to receive subcontracting work on these larger state contracts.
Mentor-Protege Program
The Texas HUB Program includes a Mentor-Protege Program that pairs established businesses (mentors) with HUB-certified businesses (proteges). The mentor provides guidance on business development, capacity building, and navigating state procurement. This program is particularly valuable for HUB businesses that are new to government contracting.
HUB Directory Visibility
Being listed in the HUB Directory makes your business visible to every state agency purchasing officer. When agencies need to identify potential HUB vendors for a procurement, they search the directory by commodity code and location. Having an accurate and complete listing is essential for receiving solicitations and bid invitations.
Stacking HUB with Other Certifications
HUB certification works best when combined with other certifications:
- City MBE/WBE certifications: Houston, Dallas, San Antonio, and other Texas cities have their own minority and women business certification programs for city contracts. Getting both HUB and city certifications maximizes your opportunities. Guide to minority business grants in Texas.
- SBA 8(a): The federal 8(a) program provides access to federal sole-source contracts and set-asides. Having both HUB and 8(a) gives you access to both state and federal procurement preferences.
- HUBZone: If your business is located in a Historically Underutilized Business Zone, HUBZone certification adds federal procurement preferences on top of state HUB benefits.
- SDVOSB: Service-Disabled Veteran-Owned Small Business certification through the VA adds another layer of federal contracting preference. Guide to veteran business programs.
Common Mistakes to Avoid
- Not registering on the CMBL: Certification alone is not enough. You must also register on the Centralized Master Bidders List so agencies can find you when searching for HUB vendors.
- Incomplete commodity codes: List all the goods and services you can provide. Agencies search by commodity code, so missing codes means missing opportunities.
- Not monitoring bid opportunities: Actively monitor the Electronic State Business Daily (ESBD) for bid postings. Set up email alerts for your commodity codes so you are notified when opportunities are posted.
- Failing to network: Attend the HUB Forums and networking events hosted by the Comptroller and individual agencies. These events connect you directly with procurement officers and prime contractors.
- Letting certification lapse: Keep track of your certification renewal date and submit renewal documentation on time. A lapsed certification removes your visibility in the directory.
Resources and Next Steps
- Texas Comptroller HUB Program: The official program page has the application, FAQs, and contact information for the HUB Program staff.
- HUB Forums: The Comptroller hosts regional HUB Forums throughout the year where HUB businesses can meet directly with state agency procurement staff.
- Electronic State Business Daily (ESBD): The official portal for state bid postings. All state procurement opportunities above certain thresholds are posted here.
- SBDCs: Small Business Development Centers provide free counseling and can help you with the HUB application process.
Bottom Line
Texas HUB certification is free, relatively straightforward to obtain, and provides access to billions of dollars in state contracting opportunities. If your business qualifies — as a minority-owned, women-owned, veteran-owned, or service-disabled veteran-owned enterprise — there is no reason not to apply. The certification costs nothing and can open significant procurement opportunities that are not available to non-certified businesses.
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