The Historically Underutilized Business (HUB) program is a state certification administered by the Texas Comptroller of Public Accounts. It is designed to increase procurement opportunities for businesses owned by minorities, women, service-disabled veterans, and other historically underutilized groups in Texas state contracting.
Understanding what HUB certification is, who qualifies, and how it works is an important step for Texas business owners who want to compete for state agency contracts. This guide explains the program structure, eligibility requirements, and practical benefits.
What the HUB Program Does
The HUB program creates procurement preferences for certified businesses when Texas state agencies purchase goods and services. Texas law requires state agencies to make a good-faith effort to award a percentage of their contracts to HUB-certified businesses. The program does not guarantee contracts, but it provides meaningful access to a large pool of state spending.
According to the Texas Comptroller, the state spends billions of dollars annually on goods and services. HUB certification positions eligible businesses to compete for a share of that spending through preference programs, subcontracting requirements, and mentor-protege relationships.
Who Qualifies for HUB Certification
To qualify for HUB certification in Texas, a business must meet all of the following requirements:
- Ownership: The business must be at least 51% owned by a person who is a member of one of the following groups: Asian Pacific Americans, Black Americans, Hispanic Americans, Native Americans, American women, or service-disabled veterans.
- Texas presence: The business must have its principal place of business in Texas or demonstrate that it has a significant business presence in the state.
- Size standards: The business must meet the size standards established by the Texas Comptroller, which vary by industry and are generally tied to annual revenue or number of employees.
- Control: The qualifying owner must exercise day-to-day management and operational control of the business.
How to Apply for HUB Certification
The application process involves the following steps:
- Create an account: Register on the Texas Comptroller's HUB online application system through the Centralized Master Bidders List (CMBL).
- Complete the application: Provide business ownership information, financial documentation, and supporting evidence of qualifying group membership.
- Submit supporting documents: Include articles of incorporation, partnership agreements, tax returns, and personal identification documents for qualifying owners.
- Comptroller review: The Comptroller's Statewide HUB Program reviews the application and may request additional information or a site visit.
- Certification decision: If approved, the business receives HUB certification, which is valid and must be renewed periodically.
Benefits of HUB Certification
State Procurement Access
HUB-certified businesses are listed in the Comptroller's directory, which state agencies use when seeking vendors. Agencies are required to make good-faith efforts to meet HUB participation goals, which means certified businesses receive direct outreach for bidding opportunities.
Subcontracting Opportunities
Large state contracts often include HUB subcontracting plans. Prime contractors on state projects are required to demonstrate good-faith efforts to subcontract with HUB-certified businesses, creating opportunities even when the HUB business is not the primary bidder.
Mentor-Protege Program
The state operates a HUB Mentor-Protege Program that pairs certified HUB businesses with experienced prime contractors. This program provides technical guidance, capacity building, and real-world contracting experience.
Networking and Events
The Comptroller and state agencies host HUB forums, vendor fairs, and matchmaking events throughout Texas. These events connect certified businesses directly with agency procurement officers and prime contractors.
HUB Certification vs. Other Certifications
HUB certification is a Texas state program and applies specifically to state agency procurement. It is separate from federal certifications like the SBA 8(a) program, WOSB certification, or HUBZone designation. However, many businesses hold both state HUB certification and one or more federal certifications to maximize their procurement opportunities across government levels.
Common Questions About HUB Certification
Is HUB Certification Free?
Yes. The Texas Comptroller does not charge a fee for HUB certification. Any service that charges a fee to apply for HUB certification is not the official state program.
How Long Does Certification Take?
Processing times vary, but the Comptroller typically reviews complete applications within a few weeks. Incomplete applications or applications requiring additional documentation may take longer.
Does HUB Certification Guarantee Contracts?
No. HUB certification provides access and preference, not guaranteed contracts. Certified businesses still need to submit competitive bids and meet the quality and pricing requirements of each procurement.
Find Programs That May Fit Your Business
HUB certification is one of many programs available to Texas businesses. Understanding which combination of state and federal certifications, grants, tax credits, and incentives may apply to your business requires evaluating your specific ownership structure, industry, location, and growth plans.
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