Hub Zone Training 2/2/2010


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Great workshop to attend to determine if this is an avenue for small business owners who want to take advantage of federal government contracting. Learn about the 8A/HubZone/Woman Owned Small Business preference programs. Presentation given by Richard Zilg from the SBA Newark office. This statewide workshop series is organized by the NJ Small Business Development Centers Procurement Programs. The first workshop was held on 2/25/11. This program will be held around the state at NJSBDC centers hosted by various state and county colleges.

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Hub Zone Training 2/2/2010

  1. 1. New Jersey District Office HUBZone PROGRAM UPDATE
  2. 2. What We’ll Be Talking About <ul><li>Events leading to creation of HUBZone </li></ul><ul><li>Purpose of the HUBZone Program </li></ul><ul><li>Qualifications to be certified a HUBZone concern </li></ul><ul><li>Current portfolio </li></ul><ul><li>Contract Types (benefits) </li></ul><ul><li>HUBZone in New Jersey </li></ul><ul><li>Question & Answer Session </li></ul>
  3. 3. Quick History In 1996 , U.S. Senator Christopher ‘Kit’ Bond, then Chairman of the Small Business Committee, crafts legislation to link preferences for award of Federal contracts to small businesses located in economically dormant and underserved areas, which he called HUBZones. Felt that JOBS , not more job training, was what was needed to promote long-term economic viability.
  4. 4. HUBZone Program Becomes Law, Opens Doors In 1997 , Congress passed and the President signed into law the “Small Business Reauthorization Act of 1997,” which contained HUBZone provision. In 1998 , the U.S. Small Business Administration moves final rules to create HUBZone Program. In 1999 , program certifies on March 22 nd the first HUBZone small business concern.
  5. 5. Program Overview <ul><li>Community-based </li></ul><ul><li>HUBZone Program = E ³ </li></ul><ul><ul><ul><ul><li>Employment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Empowerment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Enterprise </li></ul></ul></ul></ul>
  6. 6. Program Purpose <ul><li>Provide Federal contracting assistance to qualified small business concerns located in historically underutilized business zones (HUBZones) to: </li></ul><ul><ul><li>Increase employment opportunities </li></ul></ul><ul><ul><li>Stimulate capital investment in those areas </li></ul></ul><ul><ul><li>Empower communities through economic leveraging and the “multiplier effect.” </li></ul></ul>
  7. 7. Program Design <ul><li>From the outset, designed as a virtual program always available at: </li></ul><ul><ul><li>Application for Certification </li></ul></ul><ul><ul><li>Recertification </li></ul></ul><ul><ul><li>Program Examinations </li></ul></ul>
  8. 8. HUBZone Eligibility Requirements <ul><li>Size: </li></ul><ul><ul><li>Small, by relevant SBA standards. </li></ul></ul><ul><li>Ownership and Control: </li></ul><ul><ul><li>At least 51% by U.S. citizen(s), Community Development Corporation, Agriculture Cooperative, Alaska Native Corporation, or Indian tribe. </li></ul></ul>
  9. 9. HUBZone Eligibility Requirements, cont’d… <ul><li>Location: </li></ul><ul><ul><li>“ Principal Office” must be located in a HUBZone (may differ for tribally owned concerns ) . </li></ul></ul><ul><li>Employment: </li></ul><ul><ul><li>At least 35% of employees must reside in a HUBZone (may differ for tribally owned concerns) . </li></ul></ul>
  10. 10. HUBZone Qualified Areas <ul><li>Metropolitan Area Census Tracts : 10,169 areas </li></ul><ul><ul><li>“ Qualified Census Tract” that meets test for Low Income Housing Tax Credit. (HUD) (Changes with decennial census.) </li></ul></ul><ul><li>Non-metropolitan Counties: 1,302 counties </li></ul><ul><ul><li>Median household income is less than 80% of the non-metropolitan state level (Census) (Changes with decennial census.) </li></ul></ul><ul><ul><li>Unemployment rate that is at least 140% of the lower of the state-wide or U.S. average (BLS) (Changes annually.) </li></ul></ul>
  11. 11. HUBZone Qualified Areas, cont’d… <ul><li>Federally recognized Indian Reservations: 659 </li></ul><ul><ul><li>Locations include land meeting definition of Indian Country (BIA and IRS) (Change is periodic) </li></ul></ul><ul><li>Difficult Development Areas: 67 locations </li></ul><ul><ul><li>“ Difficult Development Area” external to continental U.S. that meets test for Low Income Housing Tax Credit. (HUD) (Changes with decennial census.) </li></ul></ul><ul><li>Former military base closed by BRAC: 105 </li></ul><ul><ul><li>Former military bases closed as a result of Base Realignment and Closure Act (BRAC). Locations remain HUBZone for five years after date of closing or, if already closed by Dec. 8, 2004, five years from that date. (Defense) (Changes periodically) </li></ul></ul>
  12. 12. HUBZone Program Benefits <ul><li>Set-aside awards </li></ul><ul><li>Sole source awards </li></ul><ul><li>Awards through full and open competition after application of 10% price evaluation preference (PEP) </li></ul><ul><li>Subcontracting Opportunities </li></ul>
  13. 13. Federal Government-wide Prime HUBZone Contracting Awards by Fiscal Year <ul><li>FY 1999 Goal - 1% Actual - not available </li></ul><ul><li>FY 2000 Goal – 1.5% Actual - $663.3 M (.33%) </li></ul><ul><li>FY 2001 Goal – 2.0% Actual - $1.7 B (.72%) </li></ul><ul><li>FY 2002 Goal – 2.5% Actual - $1.7 B (.71%) </li></ul><ul><li>FY 2003 Goal – 3.0% Actual - $3.4 B (1.23%) </li></ul><ul><li>FY 2004 Goal – 3.0% Actual - $4.8 B (1.59%) </li></ul><ul><li>FY 2005 Goal – 3.0% Actual - $6.2 B (1.94%) </li></ul><ul><li>FY 2006 Goal – 3.0% Actual – $7.1 B (2.11%) </li></ul><ul><li>FY 2007 Goal – 3.0% Actual – $8.5 B (2.24%) </li></ul>
  14. 14. The HUBZone Program in NEW JERSEY <ul><li>Number of certified HUBZone Firms: 75 </li></ul><ul><li>*(Active CCR firm profiles as of 2/1/2010) </li></ul>
  15. 15. NEW JERSEY HUBZONE LOCATIONS <ul><li>HUBZones are currently located in the following cities & towns in New Jersey. Please be advised that HUBZones are determined by census tracts which have street by street boundaries. For this reason, we strongly suggest the use of our HUBZone locator system to define the boundaries of each HUBZone. </li></ul><ul><li>The HUBZone locator can be accessed at the SBA web site ( ). </li></ul><ul><li>COUNTY CITY </li></ul><ul><li>Atlantic Atlantic City, Absecon </li></ul><ul><li>Bergen Englewood, Fairview, Ramapough Indian Reservation </li></ul><ul><li>Burlington Wrightstown, Pemberton, Rankokus Indian Reservation </li></ul><ul><li>Cape May West Wildwood, Wildwood </li></ul><ul><li>Camden Camden, Pennsauken </li></ul><ul><li>Cumberland Bridgetown, Millville, Vineland, Nanticoke Lenni Lenape Indian Reservation </li></ul>
  16. 16. NEW JERSEY HUBZONE LOCATIONS <ul><li>COUNTY CITY </li></ul><ul><li>Morris Dover, Randolph </li></ul><ul><li>Monmouth Allenhurst, Asbury Park, Colts Neck, Eatontown, Howell, Long Branch, Morganville, Neptune, Tinton Falls, West Long Branch </li></ul><ul><li>Ocean Beachwood, Brick, Dover Twp., Lakehurst, Lakewood, Toms River </li></ul><ul><li>Passaic Clifton, Passaic, Paterson </li></ul><ul><li>Salem Penns Grove, Salem </li></ul><ul><li>Somerset Bound Brook </li></ul><ul><li>Union Elizabeth, Plainfield, Hillside, Linden, Roselle </li></ul><ul><li>Warren Philipsburg </li></ul>
  17. 17. NEW JERSEY HUBZONE LOCATIONS <ul><li>The following areas are no longer designated as HUBZones. Previously certified HUBZone firms located in these areas who continue to meet all other eligibility criteria will have their certifications &quot;grandfathered&quot; until the results of the 2010 census are published. </li></ul><ul><li>COUNTY CITY </li></ul><ul><li>Bergen Dumont, Fort Lee </li></ul><ul><li>Burlington Mt. Holly </li></ul><ul><li>Essex Newark (sections) </li></ul><ul><li>Gloucester Glassboro </li></ul><ul><li>Union Elizabeth (sections) </li></ul>
  18. 18. <ul><li>“ Rebuilding America's Communities, One Small Business at a Time &quot; </li></ul>The HUBZone Program
  19. 19. Thank You <ul><li>Any Questions? </li></ul><ul><li>HUBZone Liaison: Sandy Gerber </li></ul><ul><li>973-645-3729 </li></ul>