Small Business Set-Aside Program

Historically Underutilized Business Zone (HUBZone) Program

The HUBZone program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. By locating their business in a HUBZone and employing local residents, companies can gain access to sole-source and set-aside contracts, as well as a 10% price evaluation preference in full and open competitions.

3% of contracts

Government Goal

$4.5M (services)

Sole Source Limit

10% evaluation

Price Preference

35% in HUBZone

Employee Requirement

Eligibility Requirements

Small Business Status

Must qualify as a small business under SBA size standards for your primary NAICS code

Principal Office Location

Principal office must be located in a HUBZone (verify at maps.certify.sba.gov)

Employee Residency

At least 35% of employees must reside in a HUBZone (any HUBZone, not necessarily where the business is located)

Ownership & Control

At least 51% owned and controlled by U.S. citizens, or a Community Development Corporation (CDC), Indian Tribe, or Native Hawaiian Organization

Attempt to Maintain

Must attempt to maintain having 35% of employees residing in a HUBZone during contract performance

How to Apply

Certification timeline: Approximately 60-90 days. Processing times vary based on application completeness and SBA workload.

Verify HUBZone Eligibility

Use the HUBZone map at maps.certify.sba.gov to verify your office location and employee residences are in HUBZones

Complete SAM Registration

Create Certify.SBA.gov Account

Set up your account on the SBA certification portal

Document Employee Residency

Collect proof of residence for all employees (utility bills, lease agreements, driver's licenses)

Submit Application

Complete and submit the HUBZone application with all supporting documents

Site Visit

SBA may conduct a site visit to verify your principal office location and operations

Program Benefits

Sole-source contracts up to $4.5 million (manufacturing up to $7 million)

Access to HUBZone set-aside contracts

10% price evaluation preference in full and open competitions

Subcontracting opportunities with large primes needing HUBZone credit

Can be combined with other certifications (8(a), SDVOSB, WOSB)

No program time limit (unlike 8(a)'s 9-year term)

Contract Types Available

HUBZone Sole SourceHUBZone Set-AsideHUBZone Price Evaluation PreferenceSubcontracts with HUBZone creditMultiple certifications combined contracts

Common Mistakes to Avoid

Not verifying all employee addresses are in HUBZones
Principal office not in a qualifying HUBZone
Insufficient documentation of employee residency
Not maintaining 35% HUBZone employee residency
Misunderstanding which office qualifies as "principal office"
Using outdated HUBZone maps

Frequently Asked Questions

How do I know if my business is in a HUBZone?

Use the SBA's HUBZone map at maps.certify.sba.gov to verify your address. HUBZones include qualified census tracts, non-metropolitan counties, Indian reservations, and military base closure areas.

Can remote employees count toward the 35% requirement?

Yes, remote employees can count as long as they reside in a HUBZone. You'll need to document their HUBZone residency with utility bills, leases, or similar documentation.

What if my area loses HUBZone designation?

SBA provides a transition period. If your location loses designation, you have until the next recertification cycle to either relocate or adjust your employee base.

How long is HUBZone certification valid?

Certification is valid for 3 years, with annual compliance reviews. There is no lifetime program limit like the 8(a) program.

Tips for Success

Verify HUBZone status regularly (designations can change)
Keep employee residency documentation current
Build recruiting pipelines in HUBZone areas
Consider opening an office in a HUBZone
Combine with other certifications for maximum advantage
Market your HUBZone status to prime contractors

Program Information

Administrator:Small Business Administration (SBA)

Government Goal:3% of all federal contracting dollars

Renewal:HUBZone certified firms must recertify every 3 years through certify.sba.gov. Annual reviews ensure continued compliance with employee residency requirements.