Expanding economic opportunities in historically underutilized areas is a critical goal of the Small Business Administration (SBA). The HUBZONE program is designed to stimulate economic development through increased employment opportunities and investment in these areas. If you’re considering whether your business can qualify for the HUBZONE program, here’s what you need to know:
1. Understand the HUBZONE Program
The HUBZONE program assists small businesses located in distressed areas to gain preferential access to federal procurement opportunities. The benefits include competitive and sole source contracting, a 10% price evaluation preference in full and open contract competitions, and subcontracting opportunities.
2. Check Your Eligibility
To qualify for the HUBZONE program, your business must meet the following criteria:
- Ownership and Control: It must be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or a tribal government.
- Principal Office: Your business’s principal office must be located in a designated HUBZONE. The principal office is where the greatest number of employees at any one location perform their work, excluding contract sites.
- Employee Residency: At least 35% of your employees must reside in a HUBZONE. Employees need to live in a HUBZONE for at least 180 days, or be currently living in a HUBZONE with the intention to remain indefinitely.
3. Find Your HUBZONE
Use the SBA’s HUBZONE Maps to determine if your business location qualifies as a HUBZONE. Keep in mind that these maps are updated regularly as census data and other factors that influence HUBZONE designations change.
4. Register and Apply
- SAM Registration: Ensure your business is registered with the System for Award Management (SAM) (https://sam.gov/content/home).
- Dynamic Small Business Search (DSBS): Also, make sure your business profile in the DSBS database is accurate and complete.
- Apply through the SBA: Complete the HUBZONE application through the SBA’s online portal. Provide required documentation to prove ownership, principal office location, and employee residency.
5. Documentation and Verification
Prepare to submit documents such as:
- Ownership documentation (e.g., Articles of Incorporation, stock ledger, operating agreement)
- Lease agreements or proof of ownership for the principal office location
- Payroll records, employee addresses, and corresponding HUBZONE map printouts to verify employee residency
6. Maintain Your Status
Once certified, you must:
- Annual Recertification: Undergo annual recertifications to ensure continued compliance with the program’s requirements.
- Notify the SBA of Changes: Inform the SBA of any changes that could affect your HUBZONE eligibility, such as changes in business size, ownership, principal office, or employee residency.
7. Leverage Your HUBZONE Status
- Federal Contracts: Take advantage of the contracting benefits provided under the HUBZONE program. Engage in networking and SBA-sponsored events to find and bid on contracts.
- Marketing Your Status: Highlight your HUBZONE certification in marketing materials and bids for contracts. This status can significantly distinguish your business from competitors.
8. Seek Assistance If Needed
If you encounter any challenges during the application process or while maintaining compliance, don’t hesitate to seek assistance from local SBA offices, HUBZONE Councils, or consultants who specialize in government contracting.
Conclusion
Qualifying for the SBA’s HUBZONE program can provide your business with substantial growth opportunities through preferential access to government contracts. By following these steps and maintaining your eligibility, you can contribute to the economic upliftment of underutilized areas while advancing your business goals. Contact SDB Growth at https://sdbgrowth.com/ for more information.