HUB Zone

Federal Contract Benefits —
There are four types of HUBZone contract opportunities:
- Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.
- Sole-source: HUBZone contracts can be awarded if the contracting officer determines that:
- only one qualified HUBZone SBC is responsible to perform the contract,
- two or more qualified HUBZone SBCs are not likely to submit offers and
- the anticipated award price of the proposed contract, including options, will not exceed:
$3 million for a requirement within all other NAICS codes
- Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.
- Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.
Other Specialized Assistance –
- Eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.
- Firms in Federal Empowerment Zones and Enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds, and investment tax deductions.
Eligibility Criteria
To be eligible for the program, a concern except tribally-owned concerns, must meet ALL of the following criteria, at the time of application:
- It must be a small business by SBA standards;
- It must owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, or an agricultural cooperative or an Indian tribe;
- Its principal office must be located within a ‘Historically Underutilized Business Zone,’ which includes lands considered Indian Country and military facilities closed by the Base Realignment and Closure Act; and
- At least 35% of employees (total workforce regardless of where the employees work) must reside in a HUBZone.
- Existing businesses that choose to move to qualified areas are eligible. To fulfill the requirement that 35% of a HUBZone firm’s employees reside in the HUBZone, employees must live in a primary residence within that area for at least 180 days or be a currently registered voter in that area.