HUBZone referred to as the Historically Underutilized Business Zone program, is a company level diversity certification that helps small businesses located in distressed areas gain preferential access to federal procurement opportunities. The HUBZone project is in place to improve employment opportunities, growth, and economic development in these regions. Small Business Administration (SBA) oversees and implements HUBZone program. HUBZones are characterized as rural and urban depressed areas, usually with low median household income, high unemployment or both; the location of these communities is determined by data collected from the Department of Housing and Urban Development (HUD), the Census Bureau, the Bureau of Labor Statistics (BLS), the Department of the Interior, the Office of Indian Affairs and the Department of State.
To qualify for HUBZone certification, an organization must be a small business (as per SBA standards), owned and controlled by at least 51 percent of U.S. citizens, or a Community Development Corporation, an agricultural cooperative or an Indian tribe, located within a “Historically Underutilized Business Zone” and at least 35 percent of its employees must reside in a HUBZone.
Companies who intend to be certified as HUBZone should complete an online application on the site of the SBA. If the submission is full, you need to propose an appropriate supporting documentation. Organizations have to be recertified after three years. Unless your organization is not adhering to all the requirements of the HUBZone program, certification will continue as long as all requirements for eligibility continue to be met.
Advantages of HUBZone Firms for Buyers
Preferential treatment is not the only major advantage of HUBZone accredited status. Sole source transactions could move fast— completed in less than 30 days— saving all stakeholders considerable time and effort.
Additionally, HUBZone cert also allows companies who otherwise may not have been able to contract directly with a specific agency to do so, opening up a wider pool of suppliers to support you to meet your needs.
HUBZone certified firms provide an opportunity for federal buyers to save time and money while complying with federal guidelines and working with qualified small businesses.
Get certified as a HUBZone business
You must be certified by the SBA before you can participate in the HUBZone program. Take these steps to obtain the certification of HUBZone.
- Make sure you have a SAM.gov account.
- Make sure you have a General Login System account.
- Apply for HUBZone certification using the General Login System. Log in, select “Access” and then “HUBZone” before completing the prompts.
- Check your email for time-sensitive instructions to electronically verify your application within 10 business days.
- Submit any requested supporting documentation within 10 business days.
Update your SAM.gov profile to indicate you are a HUBZone business after you get an email confirmation from the SBA.
The data you need to provide in the application will vary depending on your business model and whether you are already participating in other SBA contracting programs. Read the General Login System instructions carefully to ensure that you provide all the information needed.
This blog was written by Linda Rawson, who is the founder of DynaGrace Enterprises (dynagrace.com) and the inventor of WeatherEgg (weatheregg.com). She, along with her daughter, Jennifer Remund make up the mother-daughter duo of 2BizChicks (2Bizchicks.com). For further information, please connect with Linda on LinkedIn, or contact her at (800) 676-0058 ext 101.
Please reach out to us at GovCon-Biz should you have any questions.
