HUBZone

HUBZone Business

Certified by SBA (Small Business Administration)

National SBE
Cost Free
Processing Time 60-90 days
Programs Accept This 31+
Renewal Annual

The HUBZone (Historically Underutilized Business Zone) program helps small businesses in underserved communities access federal contracting opportunities. With a 3% federal contracting goal and price evaluation preferences, HUBZone certification can give your business a significant competitive advantage.

Benefits of HUBZone Certification

Competitive Advantages:

  • 10% price evaluation preference in full and open competitions
  • 3% federal HUBZone contracting goal
  • Sole-source contracts up to $4 million (services) or $7 million (manufacturing)
  • Set-aside contracts limited to HUBZone firms

Combined Benefits:

  • Can be combined with other certifications (8(a), WOSB, SDVOSB)
  • Joint ventures with large businesses for larger contracts

Community Impact:

  • Creates jobs in underserved communities
  • Brings federal investment to HUBZone areas

Eligibility Requirements

To qualify for HUBZone certification:

Location Requirements:

  • Principal office must be located in a HUBZone
  • Use the HUBZone map at maps.certify.sba.gov to verify

Employee Requirements:

  • At least 35% of employees must live in a HUBZone
  • Calculated by total hours worked by HUBZone residents รท total hours worked by all employees

Ownership Requirements:

  • 51% owned by U.S. citizens, Community Development Corporation, agricultural cooperative, Native American tribe, or Alaska Native Corporation
  • No size limit for tribally-owned or ANC-owned businesses

Size Requirements:

  • Must be small under SBA size standards for your NAICS code

Required Documents

Principal Office Documentation:

  • Lease or deed for principal office location
  • Proof principal office is in a HUBZone
  • Evidence that business operations occur at this location

Employee Documentation:

  • List of all employees with home addresses
  • Proof of residence for HUBZone resident employees (utility bills, driver's license, etc.)
  • Payroll records showing hours worked

Ownership Documentation:

  • Standard SBA ownership documents
  • Proof of U.S. citizenship for owners

Business Documentation:

  • Tax returns
  • Financial statements
  • Business licenses

Application Process

Step 1: Verify Your Location Use the HUBZone map (maps.certify.sba.gov) to confirm your office is in a HUBZone.

Step 2: Calculate Employee Residency Determine if 35% of employee hours are worked by HUBZone residents.

Step 3: Register in SAM.gov Complete SAM.gov registration if not already done.

Step 4: Apply Online Submit application at certify.sba.gov.

Step 5: Provide Documentation Upload all required documents proving location and residency.

Step 6: SBA Review SBA reviews application, typically within 60-90 days.

Step 7: Ongoing Compliance Once certified, maintain 35% HUBZone employee residency.

Tips for a Successful Application

Before Applying:

  • Verify your address is CURRENTLY in a HUBZone (zones change)
  • Calculate your 35% employee residency carefully
  • Remember: it's hours worked, not headcount

Maintaining Certification:

  • Monitor HUBZone map for redesignations
  • Track employee residency monthly
  • If an employee moves out of HUBZone, you may need to adjust hiring

Redesignation Issues:

  • If your area loses HUBZone status, you get a 3-year "transition"
  • During transition, existing employees who become non-HUBZone residents are still counted

Employee Strategies:

  • Recruit from HUBZone areas
  • Consider the HUBZone residency requirement when hiring
  • Document residency annually for all employees

Renewal Process

HUBZone certification requires ongoing compliance:

  • Certification is valid for 3 years
  • Must recertify every 3 years
  • Annual review of continued eligibility
  • Must maintain 35% HUBZone employee residency
  • Must report any material changes
  • SBA may conduct program examinations

Frequently Asked Questions

Can I move my business to a HUBZone to qualify?

Yes, but you must genuinely operate from that location. P.O. boxes don't count.

What if my area loses HUBZone status?

You get a 3-year transition period to maintain certification under certain conditions.

Does remote work affect the 35% requirement?

Employees working remotely may still count if they're performing work for your principal office.

Is HUBZone certification free?

Yes, there is no cost to apply or maintain certification.

Can I be HUBZone certified and 8(a) certified?

Yes, you can hold both certifications and combine benefits.