HUBZone Program
An SBA certification program that gives small businesses in historically underutilized areas access to federal set-aside contracts and a 10% price evaluation preference.
The HUBZone (Historically Underutilized Business Zone) program provides federal contracting preferences to small businesses located in economically distressed areas. Congress created the program to stimulate economic development and employment in communities that have historically lacked investment, including rural areas, Native American lands, and certain urban neighborhoods.
Eligibility Requirements
To qualify, a business must meet SBA small business size standards, be at least 51% owned and controlled by U.S. citizens (or a qualifying CDC, cooperative, Native Hawaiian organization, or tribe), have its principal office in a designated HUBZone area, and have at least 35% of its employees residing in a HUBZone.
Contracting Preferences
HUBZone-certified firms benefit in three distinct ways. Agencies can set aside contracts exclusively for HUBZone businesses. Agencies can also award sole source contracts up to $4.5 million for services and $7 million for manufacturing. In unrestricted full and open competitions, HUBZone firms receive a 10% price evaluation preference over large business offerors, meaning an agency adds 10% to the large business price when making comparisons.
Maintaining Certification
HUBZone designations change as census data is updated. Businesses must recertify annually and maintain the 35% employee residency requirement throughout their certification period. If the principal office moves out of a designated area, a grace period applies but relocation or loss of certification will follow. SBA's online map tool lets you check whether any address qualifies before making real estate decisions.
Finding Opportunities
ProposalApp filters SAM.gov opportunities by set-aside type, making it straightforward to identify solicitations reserved for HUBZone businesses and to track agencies with the highest HUBZone spending in your NAICS codes.
Frequently asked questions
How long does HUBZone certification take?
SBA targets a 90-day processing time. Having documentation ready before you apply — lease agreements, payroll records showing employee addresses, and ownership documents — substantially speeds the review.
What is the 10% price evaluation preference for HUBZone firms?
In full and open competition, the government adds 10% to any large business offer when comparing it against a HUBZone certified firm. If the HUBZone firm prices within 10% of the competition, the HUBZone firm is treated as the lower bidder. This is a meaningful competitive advantage in price-sensitive acquisitions.