Overview
A HUBZone (Historically Underutilized Business Zone) is a program created and maintained by the U.S. Small Business Administration (SBA) to promote economic development and employment growth in distressed areas by providing access to federal contracting opportunities. The HUBZone program aims to stimulate economic growth and increase employment in these areas.
HUBZone Program Qualifications
– The business must be based in a designated HUBZone
– Must be majority-owned by a U.S. citizen
– At least 35% of its employees reside in a HUBZone
– Meet the SBA’s size standards for small businesses based on industry classification
– Maintain the SBA HUBZone-Certified status through an annual recertification process
Socioeconomic Impact
The SBA promotes increased utilization of SBA-certified small businesses owned and controlled by socially and economically disadvantaged individuals through several programs that stimulate economic empowerment, job creation, and a thriving business landscape within historically disadvantaged communities.
Federal agencies set new records for contracting with small businesses in fiscal 2023, awarding 28.4% of all eligible federal contract dollars to women-owned small businesses, small businesses, serviced-disabled small businesses, and HUBZone-certified businesses (Miller, 2024). The VA, IRS, and CMS intend to award 3% of their eligible contract dollars to HUBZone-certified businesses while the Army has a more specific goal of 1.76% (Army.mil, 2024). If you’re interested in learning more about how well federal agencies performed toward their small business contracting goals in 2023, check out the FY2023 Small Business Procurement Scorecard.