HUBZone

HUBZone is a United States Small Business Administration (SBA) program for small companies that operate and employ people in Historically Underutilized Business Zones (HUBZones). The HUBZone program was created in response to the HUBZone Empowerment Act created by the US Congress in 1998. Based on the Act, small businesses will be designated as HUBZone certified if they have the following criteria:

  1. The firm must be a small business based on the North American Industry Classification System (NAICS] for size standards.
  2. The business must be at least 51% owned and controlled by citizens of the United States.
  3. The firm’s principal office (the location where the greatest number of employees perform their work, excluding contract sites) must be in a HUBZone.
  4. 35% of the firms total workforce must reside in a HUBZone.

 

Government Contracting Requirements

The agencies of the U.S. federal government are required by the HUBZone Empowerment Act to contract with HUBZone certified small businesses for more than 3% of their budget in the form of prime contracts to HUBZone firms. The government has made some progress towards these goals but by and large remains below them.

Many contractors are unaware of the opportunities that are available through these agencies that are engaged in the hiring of contractors for the upkeep of properties owned, occupied or affiliated with the agencies. These agencies act in a similar manner as a general contractor deploying work to many subcontractors. Further, the government is set to grant billions on community development projects. Nearly everyone calling for more government spending is also calling for better accountability of where this money goes. Ideas include posting specific projects online, their status, how much they cost, and how many people they employ. These goals are impossible to achieve while the agencies deploying work are vastly inefficient. Unfortunately, many recipients of government agency contracts operate their business with limited use of technology.