HUBZone Certification: Complete Guide to Eligibility & Benefits
Learn how to qualify for HUBZone certification, the application process, maintaining compliance, and leveraging HUBZone status for federal contract opportunities.
Quick Answer
HUBZone (Historically Underutilized Business Zone) certification is an SBA program giving small businesses in economically distressed areas preferential access to federal contracts. To qualify, your principal office must be in a HUBZone, at least 35% of employees must live in a HUBZone, and you must be a small business. The federal government has a 3% HUBZone contracting goal.
What is the HUBZone Program?
The HUBZone program was established by Congress in 1997 to stimulate economic development and create jobs in urban and rural communities. By providing federal contracting preferences to businesses located in and employing residents from these areas, the program drives economic growth where it's needed most.
HUBZones include areas with high unemployment, low income, or other economic hardship indicators. This includes many inner-city neighborhoods, rural areas, Native American reservations, and former military bases.
Types of HUBZone Areas
- Qualified Census Tracts - Low-income or high-poverty areas
- Qualified Non-Metropolitan Counties - Rural areas with low median income or high unemployment
- Indian Reservations - Including Oklahoma Tribal Statistical Areas and Alaska Native Village Statistical Areas
- Qualified Base Closure Areas - Areas impacted by military base closures (BRAC)
- Qualified Disaster Areas - FEMA-declared major disaster areas (temporary designation)
Benefits of HUBZone Certification
Sole-Source Contracts
Agencies can award sole-source contracts up to $4.5 million for manufacturing and $7 million for other contracts to HUBZone firms without competition.
Set-Aside Contracts
Contracts can be set aside exclusively for HUBZone firms when at least two qualified HUBZone businesses are expected to compete and offer fair market prices.
10% Price Evaluation Preference
In full and open competitions, HUBZone firms receive a 10% price evaluation preference, making their bids more competitive against larger companies.
Subcontracting Credit
Prime contractors can count HUBZone subcontracting toward their small business subcontracting goals, making you attractive as a teaming partner.
HUBZone + Other Certifications
HUBZone certification can be combined with other SBA certifications like 8(a) and WOSB/EDWOSB. Dual-certified businesses may access multiple set-aside programs, though restrictions apply to using multiple certifications on the same contract.
Eligibility Requirements
To qualify for HUBZone certification, your business must meet all of the following requirements:
Small Business Status
Meet SBA size standards for your primary NAICS code based on employees or annual revenue, including affiliates.
U.S. Ownership
At least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Indian tribe, an Alaska Native Corporation, or a Native Hawaiian Organization.
Principal Office Location
Your principal office—where the greatest number of employees work, or where business is primarily directed—must be in a designated HUBZone.
Employee Residency
At least 35% of your employees must reside in a HUBZone. This includes any HUBZone, not just the one where your office is located.
Employee Calculation
Include all full-time, part-time, and temporary employees. Do not include 1099 independent contractors. Part-time employees (working fewer than 40 hours) may be counted proportionally at your discretion.
Finding HUBZone Areas
Use the official SBA HUBZone Map to determine whether your business location and employees' residences qualify.
Using the HUBZone Map
- 1Visit maps.certify.sba.gov
- 2Enter your business address or employee residential addresses
- 3The map will indicate whether each address is in a HUBZone
- 4Print or save results as documentation for your application
HUBZone Redesignation
HUBZone boundaries change periodically based on updated economic data. If your area loses HUBZone designation:
- • You remain certified for 3 years with "redesignated" status
- • Continue meeting all other requirements during this period
- • After 3 years, you must relocate to a HUBZone or decertify
HUBZone Application Process
HUBZone certification is free and completed online through the SBA's certification platform.
Timeline: 60-90 Days
The SBA aims to process applications within 60 days but may take longer during peak periods or if additional documentation is required.
Required Documentation
- Proof of principal office location (lease, deed, utility bills)
- Employee roster with names, positions, and hours worked
- Employee residency documentation (pay stubs, utility bills, driver's licenses)
- Ownership documentation (operating agreement, stock certificates)
- Tax returns and financial statements
Application Steps
- 1Register/update SAM.gov profile with current information
- 2Create account at certify.sba.gov
- 3Complete online HUBZone application form
- 4Upload required supporting documents
- 5Submit and await SBA review
- 6Respond to any requests for additional information
Maintaining HUBZone Certification
HUBZone certification requires ongoing compliance monitoring and periodic recertification.
Annual Recertification
You must recertify your HUBZone status annually by confirming continued compliance with all requirements.
- • Verify principal office location
- • Confirm 35% HUBZone employee residency
- • Update employee roster
- • Certify continued small business status
Program Examinations
The SBA conducts program examinations to verify continued eligibility—typically every three years or triggered by protest.
- • Site visits to principal office
- • Employee residency verification
- • Payroll and HR record review
- • Ownership documentation review
Attempt to Maintain Compliance
If you fall below the 35% HUBZone residency requirement, you have 30 days to make a good-faith attempt to restore compliance. Document all efforts to hire HUBZone residents to demonstrate your attempt.
Winning HUBZone Contracts
Search for Set-Asides
Look for solicitations with HUBZone set-aside designations on SAM.gov and agency procurement portals.
Leverage Price Preference
Compete in full and open procurements—your 10% price preference makes you more competitive.
Build Agency Relationships
Contact OSDBU offices and contracting officers to introduce your HUBZone capabilities.
Subcontracting Opportunities
Prime contractors need HUBZone subs—market yourself as a teaming partner.
HUBZone Joint Ventures
HUBZone firms can joint venture with large businesses or other small businesses. The joint venture can receive HUBZone contracts if the HUBZone firm manages and controls the joint venture and performs at least 40% of the work.
Frequently Asked Questions
What if my employees move out of a HUBZone?
You have 30 days to attempt to restore the 35% requirement through new hires or other means. Document all good-faith efforts. If you can't meet the requirement, you may lose certification.
Can I have multiple locations?
Yes, but only your principal office needs to be in a HUBZone. The principal office is where the greatest number of employees work or where business is directed from.
Do remote employees count?
Remote employees count toward your employee total, and their residences count for the 35% HUBZone residency calculation. They don't affect principal office location determination.
How long does certification last?
HUBZone certification is valid for three years with annual recertification requirements. You must recertify annually to maintain active status.
Can franchises be HUBZone certified?
Possibly, but the SBA will analyze whether the franchisor has control that would make you an affiliate. The franchise agreement must not give the franchisor excessive control over daily operations.
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BidFinds helps HUBZone-certified businesses discover set-aside opportunities across federal, state, and local agencies—all for just $99/month.
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