HUBZone Program

The HUBZone (Historically Underutilized Business Zone) program helps small businesses in designated geographic areas gain preferential access to federal contracts. HUBZone-certified firms must maintain their principal office and at least 35% of employees in a HUBZone.

How It Works

The federal government targets 3% of contracting dollars for HUBZone businesses. HUBZone certification provides access to set-aside contracts and a 10% price evaluation preference in full and open competitions. The SBA maintains a map of designated HUBZones which includes rural areas, Native American lands, and economically distressed urban areas.

Example

A manufacturing company in a rural HUBZone area bids on a DOD parts contract. As a HUBZone firm, they receive a 10% price preference — if their bid is within 10% of the lowest non-HUBZone bid, they can still win.

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