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Understanding the HUBZone Program


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Understanding the HUBZone Program

  1. 1. Minnesota District SBA Office -- HUBZone Program -- April 30, 2014 Understanding the HUBZone Program
  2. 2. -- HUBZone Program -- • Program is designed to help small firms in certain communities gain access to federal contract opportunities • HUBZone areas: typically areas of low median household incomes or high unemployment, or both • Three types of Historically Underutilized Business Zones or HUBZones – Rural counties – Urban areas – Census tracts – Exterior boundaries of an Indian reservation. • There are currently about 5,700 small firms certified in the HUBZone program
  3. 3. • Provides federal contracting assistance to qualified small firms in designated HUBZones to: – Increase employment opportunities – Stimulate capital investment – Empower communities through economic leveraging -- HUBZone Program --
  4. 4. • SBA regulates and implements the HUBZone program – Determines which businesses are eligible – Maintains a listing of qualified HUBZone firms to fulfill procurement opportunities – Adjudicates protests of eligibility regarding HUBZone contracts -- HUBZone Program --
  5. 5. • 3% government-wide prime and subcontracting goals • Contract set-asides • 10% price evaluation preference on certain contracts • Subcontracting goal on large business subcontracting plans. HUBZone Help Desk… -- HUBZone Program --
  6. 6. • Competition restricted to HUBZone small business concerns. • Sole Source: – Only one HUBZone SB available. – Requirement not currently being performed by a non- HUBZone SB. – Anticipated price of contract (including options) is less than $4.0M service ($6.5M manufacturing). -- HUBZone Program --
  7. 7. • Far Clause 52.219-4 included in solicitations issued under full and open competition for acquisitions expected to exceed $150K . • The clause allows an evaluation preference of 10% for HUBZone firms when the low offer was made by a large business. -- HUBZone Program --
  8. 8. • A large business receiving a contract over $650K ($1.5M construction) must submit a subcontracting plan as part of the contract. • Specific goals for all small business categories –including HUBZone small business concerns. • HUBZone firms must be certified by SBA to count towards subcontracting goals. -- HUBZone Program --
  9. 9. • Small business (by SBA standards) • Owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe • Principal office must be located within a designated HUBZone • At least 35% of its employees must reside in a HUBZone • Note: Different rules apply for Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126. -- HUBZone Program --
  10. 10. • Principal office is defines as the location where greatest number of concern's employees at any one location perform their work. • For services or construction operations, the principal office is location where greatest number of employees perform work, but excluding those who perform work at job-site locations to fulfill specific contract obligations. -- HUBZone Program --
  11. 11. • When economic data is updated and a formerly qualified HUBZone area no longer meets the unemployment or income criteria, these areas are “grandfathered” for three years. • These “grandfathered” areas are called redesignated areas. • The redesignated areas have and end date and HUBZone certified firms with principal offices in the areas will be decertified when the “grandfathering” period ends. -- HUBZone Program --
  12. 12. -- HUBZone Program --
  13. 13. • Wadena Income • Cass Unemployment • Clearwater Unemployment • Hubbard Unemployment • Kanabec Unemployment • Koochiching Unemployment • Mille Lacs Unemployment • Pine Unemployment -- HUBZone Program --
  14. 14. • Mahnomen October 2014 • Morrison October 2015 -- HUBZone Program --
  15. 15. • Most successful HUBZone firms plan for their success – Long-term and revolving strategies that define how to be and remain competitive – Maintain principal office and 35% employee residency requirements • Planning is everything -- HUBZone Program --
  16. 16. HUBZone Certification Application Process
  17. 17. • STEP 1. Verify eligibility compliance • STEP 2. Gather what you need (supporting documentation) • STEP 3. Review sample HUBZone application form • STEP 4. Review and ask questions • STEP 5. Access SBA’s General Login System (GLS) • STEP 6. Complete and submit the online HUBZone application • STEP 7. Submit requested supporting documentation -- HUBZone Program --
  18. 18. • Firm’s principal office is located in a designated HUBZone. • At least 35% of firm’s employees live in a designated HUBZone. • Firm is a small business by SBA size standards. • Business is directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe • Note: Different rules apply for Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives -- HUBZone Program --
  19. 19. General business information SAM profile DUNS number Appropriate NAICS codes Business and personal federal tax returns for the last 3 years Proof of principal office location, such as lease agreement Business ownership documentation – articles of incorporation, LLC, etc. Official payroll records and other information showing employees residing within HUBZones Citizen documentation for owners Other information supporting HUBZone eligibility requirements -- HUBZone Program --
  20. 20. • Review a sample HUBZone application form. • Critical Step – do not attempt to complete the actual online HUBZone application until you have reviewed the sample form and gathered all documents you need to complete it -- HUBZone Program --
  21. 21. • You don’t know what you don’t know… • Review HUBZone eligibility requirements, sample application form and the documentation you gathered and ask questions -- HUBZone Program -- HUBZone Help Desk…
  22. 22. -- HUBZone Program --
  23. 23. • Complete and submit the online HUBZone application -- HUBZone Program --
  24. 24. • After application is submitted and reviewed, supporting documents will be requested by the SBA • Documents must be provided to the SBA within two weeks • Requested documents will include: – Documentation supporting ownership & control and size standards – Business and personal tax returns – Documents showing compliance with HUBZone employment and principal office requirements -- HUBZone Program --
  25. 25. -- HUBZone Program -- • Application “times-out” • Unable to access the GLS system • 35% of employees are not located within HUBZone areas • Requested supporting documents do not validate information in the HUBZone application
  26. 26. Resources
  27. 27. -- HUBZone Program -- • Interactive forum hosted by HUBZone Program Office. – Tuesdays and Thursdays 1 to 2 p.m. CST – Call 1-888-858-2144, access code 3061773# – HUBZone Program Office will discuss specific eligibility topic followed by a general question and answer session. • 15 minute phone appointments with HUBZone staff. – Complete appointment form at:
  28. 28. -- HUBZone Program -- • Electronic newsletter used by the HUBZone program office to communicate with interested parties. • HUBZone certified firms automatically on list. • Anyone interested can subscribe. • Go to and select Get Email Updates
  29. 29. • Thank you for taking the time to learn about the HUBZone program • Please contact us with any questions you may have • National: • Local: Randall Czaia 612-370-2314, -- HUBZone Program --