On this page, you will find the latest news related to HUBZones. Be sure to check back often to stay up to date on the HUBZone program and topics which may be useful for you and your business. Visit our other HUBZone pages to learn more about the basics, how to apply, and to find out if you are located in a HUBZone.
HUBZone Designations Update to Non-Metropolitan Counties
January 2, 2013
The HUBZone nonmetropolitan county designations have been updated to reflect newly released 2007-2011 American Community Survey income data as well as 2013 Difficult Development Area designations. Twenty two (22) counties have been newly qualified as a result of this update while thirty nine (39) have been redesignated. For now, you can check your county's designation in the pdf and excel files at the maps page; expect these changes to be incorporated into the HUBZone map soon.
New Federal Acquisition Regulation rule on nondisplacement of qualified workers
December 27, 2012
On December 21, 2012, the Federal Acquisition Regulation (FAR) issued a final rule implementing Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts, dated January 30, 2009 (published at 74 FR 6103 on February 4, 2009), and the Department of Labor (DOL) regulations at 29 CFR part 9. The Executive Order and final rule require service contractors and their subcontractors that receive an award for a follow-on contract (referred to as a successor contract) to offer employees of the incumbent contractor (referred to as the predecessor contractor) and its subcontractors a right of first refusal of employment for positions for which they are qualified. The rule is effective January 18, 2013 and is applicable to solicitations issued on or after the effective date.
A copy of the rule is available here. Read the related FAQ.
New Santa Ana Indian Trust Land added to the list of HUBZone qualified areas
December 27, 2012
An approximately 40 acre area of land adjacent to the Santa Ana Pueblo in Bernalillo, New Mexico has been added to the list of qualified Indian Lands. This area, shown below in green, has not yet been added to the map but small businesses with relevant addresses in the area are elgible to apply now if they believe they otherwise meet all the requirements.
Kentucky-Based Defense Contractors, Owners Agree to Pay $6.25 Million to Resolve Allegations That They Submitted False Statements and Claims to Obtain Army Contracts Intended for Small Businesses
December 21, 2012
Kentucky-based Lusk Mechanical Contractors and Commonwealth Technologies, and their owners, Harry Lusk and Wendell Goodman, have agreed to pay $6.25 million to resolve allegations that they submitted false statements to the Small Business Administration and false claims to the Army, the Justice Department announced today. See the full article.
Update on the 2013 Qualified Census Tracts (QCTs)
September, 2012
The US Department of Housing and Urban Development published the 2013 QCTs effective January 2013. For the purpose of the HUBZone Program, SBA will make these effective October 1, 2012. To find out if an address is in a 2013 QCT, please enter the address at the HUD map.
What happens if the address is now in a QCT but not in the 2013 QCT map?
The address will be redesignated as a HUBZone until October 1, 2016.
Does the HUD map have all the HUBZone area designations?
No. It only has the 2013 QCTs. The HUBZone maps will reflect the 2013 QCTs by mid-November 2012.
Some nonmetropolitan counties are losing HUBZone designation on October 1, 2012
There are a number of nonmetropolitan counties that will cease to be designated as HUBZones effective October 1, 2012. These are counties that were redesignated for three years in October 1, 2009 after they did not meet the following regulatory criteria:
- Median household income has to be less than 80% of the nonmetropolitan state median household income based in the most recent data available from the Census (i.e., American Community Survey 2006-2010);
- Unemployment rate is not less than 140 percent of the average unemployment rate of the United States or for the State in which the county is located, whichever is less, based on the most recent data available from the Bureau of Labor Statistics
Some nonmetropolitan counties have been newly designated as HUBZones, while the redesignated dates of others have changed based on the unemployment revised data. These areas are not yet displayed in the map but you can find them in the comprehensive nonmetropolitan counties list.
If you have any questions, please feel welcome to contact the HUBZone helpdesk at hubzone@sba.gov.
Important announcement to the HUBZone Small Business Concern (SBC)
On or after October 1, 2012 all certified HUBZone small businesses whose principal office is located in a redesignated HUBZone that has expired will be proposed for decertification. The certified HUBZone SBC will have 30 days to respond to the proposed decertification letter.
HUBZone encourages firms to conduct an eligibility self-evaluation to see if on October 1, 2012 any of the HUBZone addresses that affect your eligibility (e.g., principal office address, addresses of employees who reside in a HUBZone) will no longer be designated as HUBZone. If the map result shows that because the area was previously qualified, it will retain HUBZone eligibility as ‘Redesignated’ until October 2012, then the address is in a HUBZone due to expire on October 1, 2012.
Some nonmetropolitan counties have been newly designated as HUBZones, while the redesignated dates of others have changed based on the unemployment revised data. These areas are not yet displayed in the HUBZone map but you can find them in the list.
It is crucial that you consider how this expiration of the redesignated areas will impact your offers or awards on HUBZone contracts.
HUBZone regulations require that a firm must be a qualified HUBZone SBC both at the time of its initial offer and at the time of award in order to be eligible for a HUBZone contract.
Additionally, at the time a qualified HUBZone SBC submits its initial offer, and where applicable its final offer, on a specific HUBZone contract, it must certify to the contracting officer that:
- It is a qualified HUBZone SBC that appears on SBA's List; and
- There has been no material change in its circumstances since the date of certification shown on the List that could affect its HUBZone eligibility
A material change includes, but is not limited to, a change in the ownership, business structure, or principal office of the concern, or a failure to meet the 35% HUBZone residency requirement.
Also, please note that that merely having a signed lease is not sufficient evidence that the “principal office” is located in a HUBZone. The greatest number of the concern’s employees (excluding job site employees for construction and services firms) must be working at the office located in a HUBZone in order for SBA to determine that the principal office is located in a HUBZone.
For example:
A firm submits its initial offer on September 7, 2012. At that time it is in compliance with HUBZone eligibility criteria. On October 1, 2012 the area where some of its employees reside loses HUBZone designation and its HUBZone employee residence dips below the 35% statutory and regulatory requirement. Award is made on October 5, 2012. The firm is not eligible to receive the award because it is no longer a HUBZone SBC and therefore not eligible at the time of award.
Contact the HUBZone Help Desk at HUBZone@sba.gov if you need any assistance.
News for Businesses Applying for HUBZone Certification
Before you submit your HUBZone application, consider how the October 1, 2012 expiration of the redesignated areas will impact your business.
Final determinations on applications for HUBZone certification are issued in approximately 90 days. So, businesses that are applying for certification now with a principal office or employees residing in a Redesignated HUBZone might be denied certification because the principal office is no longer in a HUBZone and/or the business no longer meets the HUBZone residency requirement.
Some nonmetropolitan counties have been newly designated as HUBZones, while the redesignated dates of others have changed based on the unemployment revised data. These areas are not yet displayed in the HUBZone map but you can find them in the list.
Contact the HUBZone Help Desk at HUBZone@sba.gov if you need any assistance.
Important News Regarding How the 2010 Decennial Census Might Affect Your Company’s Eligibility
All Redesignated HUBZones due to expire on “the Date on Which the Census Bureau Publicly Releases the First Results from the 2010 Decennial Census” will be expiring effectively on October 1, 2011. These Redesignated HUBZones are the ones that were provided an extended grandfathering period beyond the original three years, until the Census Bureau released new data collected from the 2010 census.
Prior to that date, please check the HUBZone website for additional information. (Please be aware that the HUBZone website map currently shows June 1, 2011 as the “qualified at least until date” and will be changed to October 1, 2011 in the website update.) If at any time you have any questions about the Program or how the SBA may be able to support your business objectives, please call the HUBZone Help Desk at (202) 205-8885, or you may email us at HUBZone@sba.gov.
Maryland Contractors and Their President to Pay Settlement for Falsely Obtaining Hubzone Contracts
October, 2010
WASHINGTON – CSI Engineering and CSI Design Build, located in Beltsville, Md., and their president, Debdas Ghosal, have agreed to pay the United States $200,000 to settle claims that they used false statements to obtain contracts from several government agencies, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program.
Click here to read this news release in full.
Georgia Defense Contractor and Its President to Pay $750,000 to Resolve False Claims Act Allegations
July, 2010
WASHINGTON – Quantum Dynamics Inc, located in Macon, Ga., and its president, Audrey Price, have agreed to pay the United States $750,000 to settle claims that they fraudulently obtained contracts from the Army, the Justice Department announced today. The contracts had been set aside for companies that qualified for the Small Business Administration’s Historically Underutilized Business Zone (HUBZone) program. Quantum was allowed to participate in the HUBZone program based on false statements made to the government.