What is the HUBZone?

The Historically Underutilized Business Zones (HUBZone) is a program offered by the Small Business Administration (SBA).  The HUBZone is the result of the ‘Small Business Reauthorization Act of 1997’ [1]  and its purpose is to help “small businesses in urban and rural communities gain preferential access to federal procurement opportunities [2].”

How does a company qualify?

So what qualifies a small business for the HUBZone program?  The small business must meet a set of requirements.

First, the business must be considered a small business within the North American Industry Classification System (NAICS) type [3].  You can access the Small Business Administration (SBA) size standards tool http://www.sba.gov/tools/size-standards-tool to determine whether your business is considered a small business.

Second, the business must meet one of the following ownership and control requirements [3].  The five ownership and control requirements are:

  • at least 51% owned and controlled by US Citizen(s),
  • owned in part or whole by Indian Tribal Governments,
  • ANC owned by Natives or a subsidiary corporation, joint venture, or partnership of ANC,
  • owned I part or whole by a CDC, and
  • a cooperative or small business which is owned in part or whole by small agricultural cooperatives [3].

Third, the business’ principal office must be located in a qualified HUBZone  with the exception of certain businesses owned by the Indian Tribal Government [3].  Use the SBA HUBZone mapping to determine whether your business is located in a qualified HUBZone area.  http://map.sba.gov/hubzone/maps/

Fourth, at least 35% of the business’ employees must live in a qualified HUBZone [3].  The SBA defines living as having a primary residence for at least 180 days, a current registered voter in that area, and the intention of living there indefinitely [3].

What needs to be done to prepare for applying?

Once the determination has been made that the company qualifies for the HUBZone program the application process can begin.  To begin review the Certifications FAQ found on the SBA website, http://www.sba.gov/content/frequently-asked-questions#certification .

The following registrations must be completed;

  1. The company headquarters and each office must have a Data Universal Numbering System (DUNS) [3]. http://fedgov.dnb.com/webform
  2. The Employer’s Identification Number/Tax Identification Number (EIN/TIN) must be registered with the System for Award Management (SAM) [3]. https://www.sam.gov/portal/SAM/#1
  3. The Dynamic Small Business Search (DSBS) is used to keep up to date information on the company profile [3].
  4. Everyone who should have the ability to update the company’s information must be registered with the General Login System (GLS) [3].

Once all required registrations have been made, make sure all the necessary documentation is ready to be produced upon request [3].  See the checklist provided by the SBA, http://www.sba.gov/sites/default/files/files/HUBZone_Document_Checklist.pdf.

How does a company apply?

Once the company has been determined to be qualified and the above preparations have been made the company is ready to apply.  Go to https://eweb.sba.gov/gls/dsp_login.cfm?CFID=12562710&CFTOKEN=9f5abae918fffffd-31D11F62-0DC9-444A-353356B046173062&jsessionid=9a3087b6c0d4d84d5e0e685ea173c461b204

If help is needed, the SBA provides an application guide with step by step instructions. Go to http://www.sba.gov/sites/default/files/files/HUBZone_Document_Checklist.pdf , at the bottom is a link to the PDF checklist.

The SBA can also be contacted by phone (800)827-5722 or by e-mail mailto:hubzone@sba.gov

 

Works Cited

[1] Small Business Administration, “Understanding the HUBZone Program,” [Online]. Available: http://www.sba.gov/content/understanding-hubzone-program. [Accessed 15 September 2014].
[2] Small Business Administration, “HUBZone Program,” [Online]. Available: http://www.sba.gov/category/navigation-structure/contracting/contracting-support-small-businesses/small-business-cert-0. [Accessed 18 September 2014].
[3] Small Business Administration, “Applying for the HUBZone Program,” [Online]. Available: http://www.sba.gov/content/applying-hubzone-program. [Accessed 18 September 2014].