HUBZones (Historically Underutilized Business Zones) were established in 1997 by the federal government as part of the Small Business Reauthorization Act. Specific contracts from the federal government can be designated for HUBZone qualifying companies. Government-wide goals aim for 3% of prime and subcontracting opportunities to go to HUBZone companies. While the program gives an advantage, it is still the responsibility of the company to put the information forward and submit the bid.
Companies in a HUBZone can gain competitive and sole source contracting. Another benefit to being in a HUBZone is a 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.
To qualify for HUBZone benefits, a business must have certification from the Small Business Administration as a small business. Then, the business must determine if it meets the eligibility requirements for a HUBZone.
- Registered with the Small Business Administration as a small business
- Principal office of business must be in a HUBZone
- Business must be at least 51% owned and controlled by U.S. citizens, a community development corporation, an agricultural cooperative, of an Indian tribe
- At least 35% of the business’ employees must reside in a HUBZone (not necessarily the same HUBZone as the business location
For more information visit the SBA website or contact us.
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Consult link below to verify you are in the HUBzone
A great, free resource in navigating federal contracting is Rita Haake, program manager for the Illinois Procurement Technical Assistance Center (PTAC), through College of DuPage. She can be reached at 630-942-2616 or via email.