HUBZone (Historically Underutilized Business Zone) Program

The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities.  The federal government has a goal of awarding at least 3% of all dollars for federal prime contracts to HUBZone certified companies.  Agencies may set-aside contracts for which only HUBZone companies are allowed to bid, or they may award sole-source contracts to HUBZone firms in an effort to meet that goal.  HUBZone-certified contractors may also be eligible for a 10% price evaluation preference in some cases of full and open contract competitions and subcontracting opportunities. 

HUBZone Program Requirements

To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria.  They must:

• be a small business by SBA standards.
• be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe.
• have its principal office located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act.
• have at least 35% of its employees residing in a HUBZone.

Firms owned by Indian Tribal Governments must either maintain a principal office in a HUBZone and ensure that 35% of its employees reside within a HUBZone or certify that at least 35% of its employees engaged in performing the contract will reside within an Indian reservation governed the Indian Tribal Government owners or reside within any HUBZone adjoining such Indian reservation.

First Steps toward Certification

Your local GovPurchase counselor can answer questions about – or help you with – any of the steps below.

• Determine if your business is “small” by SBA standards: You can use the SBA’s Size Standard Tool if you’re not sure.
• Determine if your business is located in a HUBZone:  The SBA website has an interactive map which can aide you in determining if your location qualifies as a HUBZone.  However, HUBZone designations periodically change to incorporate new data sources.  As of January 1, 2015, the SBA released revised HUBzone designations, under which a number of areas have been newly designated as HUBZones, but a greater number have been “re-designated” (meaning they have lost their HUBZone designation) until 2018. These changes are not yet reflected in the interactive map.  Documents have been posted on the HUBZone map landing page which detail specific qualified census tracts. Indian Lands are automatically considered to be HUBZone as are certain facilities closed by the Base Realignment and Closure Act. Your GovPurchase Counselor can help confirm if your area is a HUBZone.
• Dun & Bradstreet Registration:  Each headquarters and branch office must be registered so that it has its own Data Universal Numbering System (DUNS) number.
• System for Award Management (SAM) Registration: Your company must be registered in SAM, and the principal office address that is applying for HUBZone certification must be entered in the SAM profile associated with DUNS appropriate for its specific physical location.
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