Historically Underutilized Business Zone Program — Government Set-Aside Program

The HUBZone program incentivizes business growth and employment in historically underutilized business zones — geographic areas characterized by low income, high unemployment, or location on a Native American reservation. Certified HUBZone firms receive competitive preference in federal contracting through set-asides, sole-source awards, and a 10% price evaluation preference in full-and-open competition. The program is designed to drive federal contracting dollars into economically distressed communities.

• Business must be a small business under SBA size standards
• Business 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 an Indian Tribe
• Principal office must be located in a certified HUBZone geographic area
• At least 35% of employees must reside in a HUBZone area
• Business must meet 'small business' size standards for its primary NAICS code

• 1
  Competitive set-aside contracts restricted to HUBZone firms
• 2
  Sole-source awards up to $4.5M (services) and $7M (manufacturing) without competition
• 3
  10% price evaluation preference in full-and-open competition (government pays up to 10% more to award to a HUBZone firm)
• 4
  Eligibility for combined set-asides (e.g., HUBZone + 8(a) joint ventures)
• 5
  Certification remains active as long as eligibility requirements are met

1. 1

   Verify your principal office and employee residences qualify using the SBA HUBZone map at map.sba.gov

2. 2

   Gather documentation: business registration, lease or deed for principal office, employee roster with home addresses, payroll records

3. 3

   Apply through certify.sba.gov — HUBZone applications are processed on a rolling basis

4. 4

   SBA verifies office location and 35% employee residency threshold

5. 5

   Receive certification — valid ongoing as long as eligibility maintained

6. 6

   Annual recertification not required, but SBA conducts periodic program examinations

When a contracting officer restricts a procurement to HUBZone firms, you will see language like this in the solicitation header:

“This acquisition is set aside for exclusive competition among certified HUBZone small business concerns.”

Look for this language in the SAM.gov opportunity description or the solicitation’s Section B (Contract Clauses) and solicitation preamble.