Advantages of the program
Certain contracts are only open to firms in previously underused business zones, according to the government. It also offers those firms in full and open competition preferential treatment.
By becoming a member of the HUBZone program, your company will be able to compete for set-aside contracts. In full and open contract contests, HUBZone-certified firms are given a 10% pricing preference. Businesses that are HUBZone certified can still compete for contract awards through other socioeconomic initiatives.
Qualifications for the HUBZone program
To be eligible for the HUBZone program, your company must meet the following requirements:
● Be a small company
● A Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe must own and control at least 51 percent of the company.
● Have the company's main office in a HUBZone
● Have at least 35% of the workforce live in a HUBZone.
The entire list of qualifying requirements may be found in Title 13 Part 126 Subpart B of the Code of Federal Regulations (CFR).
Retain your HUBZone certification
Once a year, you must recertify for the HUBZone program. As long as a business qualifies, there is no temporal restriction on how long it may participate. Every three years, a program examination will be needed. Firms operating on HUBZone contracts must notify the SBA if they combine or acquire another business, or if their HUBZone residency falls below 20%. The SBA may conduct unannounced program exams at HUBZone firms to ensure the correctness of any certifications issued or information supplied as part of the HUBZone application or recertification procedures.
The HUBZone program promotes small company development in historically underserved business zones, with the objective of giving at least 3% of federal contract money to HUBZone-certified firms each year.
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