HUBZone Business (HUBZone)
The HUBZone (Historically Underutilized Business Zone) program helps small businesses in underserved communities access federal contracting opportunities. With a 3% federal contracting goal and price evaluation preferences, HUBZone certification can give your business a significant competitive advantage.
- Issuing body
- SBA (Small Business Administration)
- Cost
- Free
- Processing
- 60-90 days
- Recognition
- National
Who qualifies for HUBZone?
To qualify for HUBZone certification:
Location Requirements:
- Principal office must be located in a HUBZone
- Use the HUBZone map at maps.certify.sba.gov to verify
Employee Requirements:
- At least 35% of employees must live in a HUBZone
- Calculated by total hours worked by HUBZone residents ÷ total hours worked by all employees
Ownership Requirements:
- 51% owned by U.S. citizens, Community Development Corporation, agricultural cooperative, Native American tribe, or Alaska Native Corporation
- No size limit for tribally-owned or ANC-owned businesses
Size Requirements:
- Must be small under SBA size standards for your NAICS code
How to apply for HUBZone
Step 1: Verify Your Location Use the HUBZone map (maps.certify.sba.gov) to confirm your office is in a HUBZone.
Step 2: Calculate Employee Residency Determine if 35% of employee hours are worked by HUBZone residents.
Step 3: Register in SAM.gov Complete SAM.gov registration if not already done.
Step 4: Apply Online Submit application at certify.sba.gov.
Step 5: Provide Documentation Upload all required documents proving location and residency.
Step 6: SBA Review SBA reviews application, typically within 60-90 days.
Step 7: Ongoing Compliance Once certified, maintain 35% HUBZone employee residency.
What you'll need to apply
Principal Office Documentation:
- Lease or deed for principal office location
- Proof principal office is in a HUBZone
- Evidence that business operations occur at this location
Employee Documentation:
- List of all employees with home addresses
- Proof of residence for HUBZone resident employees (utility bills, driver's license, etc.)
- Payroll records showing hours worked
Ownership Documentation:
- Standard SBA ownership documents
- Proof of U.S. citizenship for owners
Business Documentation:
- Tax returns
- Financial statements
- Business licenses
What HUBZone unlocks
Competitive Advantages:
- 10% price evaluation preference in full and open competitions
- 3% federal HUBZone contracting goal
- Sole-source contracts up to $4 million (services) or $7 million (manufacturing)
- Set-aside contracts limited to HUBZone firms
Combined Benefits:
- Can be combined with other certifications (8(a), WOSB, SDVOSB)
- Joint ventures with large businesses for larger contracts
Community Impact:
- Creates jobs in underserved communities
- Brings federal investment to HUBZone areas
Where applicants get tripped up
Before Applying:
- Verify your address is CURRENTLY in a HUBZone (zones change)
- Calculate your 35% employee residency carefully
- Remember: it's hours worked, not headcount
Maintaining Certification:
- Monitor HUBZone map for redesignations
- Track employee residency monthly
- If an employee moves out of HUBZone, you may need to adjust hiring
Redesignation Issues:
- If your area loses HUBZone status, you get a 3-year "transition"
- During transition, existing employees who become non-HUBZone residents are still counted
Employee Strategies:
- Recruit from HUBZone areas
- Consider the HUBZone residency requirement when hiring
- Document residency annually for all employees
Keeping your HUBZone certification active
HUBZone certification requires ongoing compliance:
- Certification is valid for 3 years
- Must recertify every 3 years
- Annual review of continued eligibility
- Must maintain 35% HUBZone employee residency
- Must report any material changes
- SBA may conduct program examinations
Organizations that issue HUBZone
Companies that accept HUBZone
31 corporate programs accept HUBZone. First 12 below.
- Boeing f500
- Lockheed Martin f500
- McKesson f500
- Microsoft Corporation f100
- U.S. Department of Defense (DoD) federal
- U.S. Department of Veterans Affairs (VA) federal
- U.S. General Services Administration (GSA) federal
- U.S. Small Business Administration (SBA) federal
- AECOM f500
- BAE Systems large
- Booz Allen Hamilton large
- CACI International large
Questions applicants ask about HUBZone
Can I move my business to a HUBZone to qualify?
Yes, but you must genuinely operate from that location. P.O. boxes don't count.
What if my area loses HUBZone status?
You get a 3-year transition period to maintain certification under certain conditions.
Does remote work affect the 35% requirement?
Employees working remotely may still count if they're performing work for your principal office.
Is HUBZone certification free?
Yes, there is no cost to apply or maintain certification.
Can I be HUBZone certified and 8(a) certified?
Yes, you can hold both certifications and combine benefits.
Pursuing HUBZone?
The quiz checks your business against every federal, national, and state certification we track and orders the matches by which corporate or government buyers accept each one. Most owners qualify for two or three. If HUBZone is one of yours, the application link goes directly to SBA (Small Business Administration).