HUBZone is a program of Small Business Administration in the United States. The program is meant for small companies that operate and employ people in Historically Under-utilized Business Zones. In response to the HUBZone Empowerment Act of 1998, the HUBZone program was created. It promotes equal procurement opportunities to small, minority, and women-owned businesses. Companies that are interested to do business in the federal market are encouraged to obtain HUBZone certification.
The HUBZone program helps small businesses that are in urban as well as rural communities to access federal procurement opportunities. So it does not matter where your business is situated. If you have a small business and you are willing to deal in the federal market to obtain government contracts, then obtaining HUBZone certification would be right for you.
We will be explaining all the necessary aspects that will help you to get certified. The topic includes:
So keep reading…
Small Business Administration regulates the HUBZone program. So the SBA does the following things:
A small business needs to be eligible for the HUBZone Program. Without meeting the requirement a business cannot get HUBZone certification. In this section, we will be discussing the qualifications to meet the criteria.
You can find all the criteria from the Code of Federal Regulations also known as CFR.
Only HUBZone-certified companies will be benefitted. The government limits the competition for keeping the small businesses in an advantageous position. The U.S. government does this for certain contracts to businesses that are in the historically underutilized zones. If you manage to join the HUBZone program then your business will be eligible to compete for the program’s set-aside contracts. The certified businesses also get a price evaluation preference of 10% in full and open contract competitions. The government has set a goal of awarding 3% of all dollars for federal prime contracts to certified small business concerns.
There are other benefits that are associated with the contracts that you will be getting after obtaining.
You must be certified by the Small Business Administration before you can participate in the HUBZone program. We have explained all the steps in a proper sequence. You just need to follow these steps in order to get HUBZone certification.
Also Read: Know All About HUBZone Certification Program
In 2019, the SBA announced final rules to amend the HUBZone regulations to make it easier for smaller businesses to use and utilize the HUBZone program. Small firms will be more enticed to invest in HUBZones and recruit HUBZone residents as a result of the changes. It becomes easier for federal agencies to meet their goals to award 3% of contracts to certified HUBZone small businesses.
The current HUBZone maps will not be available in time to update the map on 1st January 2022. SBA has published a notice in the Federal Register that the map will be updated on 1st July 2023.
The HUBZone Map freeze is only applicable to Qualified Census Tracts, Redesignated Areas, and Qualified Non-Metropolitan Countries. During the time of the freeze, none of them will lose their HUBZone designation and no new member will be added to the HUBZone Map.
Once in every year, you need to recertify for the HUBZone program. As long as a business continues to qualify a business can always participate. After every three years, a program examination is required.
Acquiring the HUBZone certification is not so easy nor it is too difficult. Applicants just need to work systematically to make their businesses eligible for the HUBZone program. We have covered the key elements that will increase the chances of you getting certified. If you do follow these steps systematically and consider all the important aspects, surely you will be able to get HUBZone certification. So wait no more and start the chase for success!