XL EagleHUBZone (Historically Underutilized Business Zone)
HUBZone stands for Historically Underutilized Business Zone. The HUBZone program helps small businesses in economically distressed areas. To qualify, your principal office must be located in a designated HUBZone, and at least 35 percent of your employees must live in a HUBZone. The business must also be small and majority owned by U.S. citizens or certain other qualifying owners.
Certified HUBZone firms can win HUBZone set-asides and sole-source awards, and in full and open competitions they get a 10 percent price evaluation preference over large businesses. SBA's online HUBZone map shows which addresses qualify, and certified firms must recertify every year.
Why it matters to a small contractor
Many rural towns and inner-city neighborhoods are HUBZones. If your shop is in one and your crew lives nearby, check the map. It could give you an edge most competitors do not have.
Example
A grounds maintenance company in a small rural county checks SBA's HUBZone map and finds both its yard and most employees' homes are in qualifying areas, so it applies for HUBZone certification.
HUBZone: common questions
What if the HUBZone map changes and my area drops off?
Map areas are updated over time. SBA rules have provided transition periods for areas that lose status, but check the current rules and map before planning around it.
Does the 35 percent rule count part-time workers?
SBA has specific rules for counting employees, including part-time staff. Read the HUBZone program regulations or ask SBA before you apply.
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