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HUBZone

Historically Underutilized Business Zone

An SBA program that provides contracting preferences to small businesses located in and hiring from economically distressed areas to stimulate local economic development.

What is HUBZone?

The HUBZone program is designed to drive economic growth in communities that need it most. To qualify, a small business must have its principal office in a designated HUBZone, and at least 35% of its employees must live in a HUBZone. The SBA maintains an interactive map tool to check specific addresses.

HUBZone-certified firms receive a 10% price evaluation preference in full and open competition, access to HUBZone set-aside contracts, and can receive sole-source contracts up to $4.5 million for goods and services or $7.5 million for manufacturing.

The federal government has a goal of awarding 3% of all prime contract dollars to HUBZone firms. While this goal has historically been challenging to meet (creating more opportunity for certified firms), the program remains a significant advantage for eligible businesses.

HUBZone designations can change as census data is updated. If your area loses its HUBZone designation, you may retain certification through a "redesignation" grace period. Maintaining the 35% employee residency requirement is an ongoing obligation.

Have questions about HUBZone?

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