Hub Zone

The federal Historically Underutilized Business Zone – or HUBZone – program is administered by the U.S. Small Business Administration (USSBA). Enacted in 1997, the program provides federal contracting opportunities to qualified small businesses located in economically distressed areas. The goal of the program is to grow viable businesses through government contracting and, in the process, to empower communities, create jobs and attract private investment. To qualify, a firm must:

• Be a small business.
• Be owned and controlled by one or more U.S. citizens.
• Be located in a federally designated HUBZone.
• Have 35 percent of its employees reside in a HUBZone.

Federally designed HUBZones include entire “non-metropolitan counties” with either a median household income less than 80 percent, or an unemployment rate not less than 140 percent of the state average; qualified census tracts in other counties; and all lands without federally recognized Indian reservations. Click here to view HUBZone map of Spring Lake.

HUBZone certification benefits businesses in several ways.  All federal offices have annual goals for awards to HUBZone businesses – currently 3 percent.  As a result, they “set aside” some contract opportunities for competition only among HUBZone businesses.  Under certain circumstances, they can also make “sole source” (non-competed) awards to HUBZone firms for products under $5 million, and for other requirements under $3 million.

HUBZone businesses also receive a price evaluation preference in most “full and open” competitions.  This means that the bid of a certified firm is considered lower than the offer of a non-HUBZone/non-small business, as long as it is not more than 10 percent higher.  Finally, all prime contractors with awards over $500,000 must designate a sub-contracting plan, including HUBZone certified subcontractors.

To receive HUBZone designations, a firm must meet all of the qualifications, apply and be certified by the USSBA.  The application process is free, and it’s all done online.  The USSBA maintains a database of certified businesses that other federal agencies can then use to locate vendors.

Learn more about the program on the HUBZone page of the USSBA website at http://www.sba.gov/hubzone/. See if you qualify, complete the application and get certified.  Then, market your business and your HUBZone status to contracting offices and prime contractors – and call the NC Military Business Center for assistance in bidding on HUBZone opportunities.

- article written by Scott Dorney, executive director of the NCMBC.

Click here to view HubZone map of Spring Lake