The HUBZone program is one of the most overlooked shortcuts to winning federal contracts. It gives small businesses a competitive edge by reserving billions in set-aside awards for companies located in historically underutilized areas. If your business qualifies, this is a rare chance to compete in a smaller pool for guaranteed dollars.
What does HUBZone mean?
HUBZone stands for Historically Underutilized Business Zone. It's a federal certification that targets businesses based on two things: where they operate and where their employees live.
To qualify, your business must meet these criteria:
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Your principal office must be located in a certified HUBZone
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At least 35 percent of your employees must live in a HUBZone
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Your business must be small under the SBA size standards
This program was created to boost jobs and investment in areas that need them most. In return, certified businesses gain access to exclusive contracts and price advantages on open bids.
How to check if you're eligible
The SBA provides an interactive map to check your business location and employee addresses. The map is updated regularly using census data, military base closures, and tribal land designations.
The opportunity most businesses miss
The federal government sets aside at least 3 percent of prime contract dollars for HUBZone vendors. That’s over 13 billion dollars earmarked for certified businesses every year. The problem? Most of it goes unspent.
In recent years, actual HUBZone spending has hovered around 2.05 percent. That means billions are left untouched. For small businesses that qualify, this is a massive gap in the market with very little competition.
HUBZone requirements and renewal
Getting certified is just the first step. You’ll need to maintain eligibility by:
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Renewing your certification every year
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Proving 35 percent of your employees still reside in HUBZones
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Keeping business records and payroll documents that match your original application
The SBA reviews certifications closely. One error in your address records can delay your approval or jeopardize your standing.
Like sending an invoice to a fussy client, one error, and the payment’s on hold.
To qualify for HUBZone certification through the SBA, a business must meet all of the following requirements:
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Small business status: Must be independently owned and meet the SBA size standards for its primary NAICS code.
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Principal office location: The main business office (not including remote or satellite offices) must be located in a designated HUBZone.
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Employee residency: At least 35 percent of all employees must reside in a HUBZone.
These can be any HUBZone areas, not necessarily the same one as the business address. -
Ownership: The business must be at least 51 percent owned and controlled by U.S. citizens, or by a Community Development Corporation, an agricultural cooperative, a Native Hawaiian Organization, or an Indian tribe.
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Ongoing compliance: The business must recertify annually and maintain compliance with residency and location requirements throughout the year.
Real example: Healthcare supplier lands six contracts using HUBZone
Jesse Carlow launched a healthcare supply business out of Austin, Texas. With no previous government experience, he worked with USFCR to register in SAM, apply for SDVOSB and HUBZone certifications, and complete his Online Capabilities Statement. He landed six federal contracts in just nine months, thanks to set-aside access and targeted strategy.
Set-asides changed the trajectory of his business. HUBZone was a key part of that success
How USFCR helps with HUBZone
Getting certified takes more than filling out a form. You need to confirm eligibility, gather supporting documents, and submit them to the SBA for review. And you need to do it correctly the first time.
USFCR’s Set-Aside Support service includes:
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Pre-qualification based on location and employee records
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Full application support and document preparation
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Renewal tracking and annual recertification help
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Integration with other programs like SDVOSB or WOSB
We’ll help you get it right before you apply. No guesswork, no unnecessary delays.
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