HUBZone

HUBZone (Historically Underutilized Business Zone) is an SBA program that helps small businesses located in economically distressed areas compete for federal contracts. To qualify, a firm’s principal office must sit in a designated HUBZone and at least 35% of its employees must live in a HUBZone. Certified firms get HUBZone set-asides, sole-source awards, and a 10% price evaluation preference.

Set-asidesUpdated

Who qualifies

  • Small business under its primary NAICS code.
  • Principal office located in a designated HUBZone (check the SBA HUBZone map).
  • Residency: at least 35% of employees reside in a HUBZone.
  • Ownership: at least 51% owned and controlled by U.S. citizens, an Alaska Native Corporation, a Community Development Corporation, an agricultural cooperative, or an Indian tribe.

The benefits

  • HUBZone set-aside and sole-source contracts limited to certified HUBZone firms.
  • A 10% price evaluation preference in full-and-open competitions — your bid is treated as 10% lower when evaluated against non-HUBZone large businesses.

Maintain your eligibility

HUBZone status is verified and must be recertified. Designated zones and the residency math can change over time, so confirm your principal office and employee residency still qualify before each recertification.

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Frequently asked questions

What is the 35% rule for HUBZone?

At least 35% of a HUBZone-certified firm’s employees must reside in a HUBZone. This residency requirement is one of the program’s core eligibility tests, alongside having a principal office in a designated HUBZone.

What is the HUBZone price preference?

In full-and-open competitions, a HUBZone-certified firm receives a 10% price evaluation preference: its offered price is treated as 10% lower when compared against otherwise-successful large-business offers.

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