All of Garrett County has been designated as a Historically Underutilized Business Zone (HUBZone) by the U.S. Small Business Administration (SBA). This certification qualifies businesses for preferential status in competition for federal government contracts. A SBA decision gives HUBZone-based businesses equal standing with minority-owned businesses.
What are the Federal contracting opportunities for HUBZone businesses?
- 3% of all federal prime contract dollars is targeted to HUBZone businesses. HUBZone contracting government-wide in Fiscal Year 2022 was valued at $16.3 billion.
- Set-aside awards
- Sole source awards
- 10% price evaluation preference (PEP) in full and open contract competitions
- Subcontracting opportunities
What are the HUBZone eligibility requirements?
- Be a small business as defined by the SBA Size Standards
- Principal office located in a HUBZone
- At least 35% of employees must reside in a HUBZone
- 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 an Indian tribe
- You can find the full qualification criteria in Title 13 Part 126 Subpart B of the Code of Federal Regulations
What is the HUBZone application process and how long does it take?
Before you can participate in the HUBZone program, you must be certified by the SBA. See this tip sheet for more information on the steps to get certified.
SBA is testing an eligibility workbook tool designed to help applicants organize, calculate, and present information related to their principal office and employee residency. Filling out the workbook tool and uploading it as part of your application will help expedite SBA’s review of your HUBZone application.
You can also find information about the program and eligibility guidelines in SBA's latest FAQ.
How does a business maintain a HUBZone certification?
You’ll need to recertify for the HUBZone program once a year. There is no limit to the length of time a business can participate as long as it continues to qualify. A program examination will be required at least every three years.
HUBZone businesses must notify SBA if their business is involved in a merger or acquisition or if HUBZone residency drops below 20% while performing on a HUBZone contract.
SBA may visit HUBZone businesses unannounced and conduct program examinations to verify the accuracy of any certification made or information provided as part of the HUBZone application or recertification process. For more information about continuing eligibility, view the Recertification Fact Sheet.