• General Questions
• Certification
• Designations and the HUBZone Maps
• Maintaining Certification; Decertification
• Additional Help

---

General Questions

Which regulations describe the HUBZone program?

You can read the HUBZone regulations here.

Where can I find a list of HUBZone certified firms?

The official "list" of certified firms is contained within the Dynamic Small Business Search. You can run a search to produce a list of certified firms by clicking this link, The database search results are limited to 5,000 firms but there are typically more than this number of certified HUBZone firms so you will have to limit your search by geography, industry, or other conditions in order to produce the required list. Note that this is the only publicly available way to identify certified firms.

---

Certification

My firm is certified. Where is my certificate?

The HUBZone program office does not issue certificates. When you submit bids for HUBZone contracts, contracting officers are required to confirm your HUBZone certification by searching for your firm in the publicly available Dynamic Small Business Search (DSBS). Your firm's profile will reflect whether you are HUBZone certified and if so, the date that you were certified. This part of your profile is automatically populated by the HUBZone program.

Is there a paper application or a sample application?

No, but there is this application guide which can help you prepare to submit the online application.

The online application says that my principal office is NOT in a HUBZone, but I know that it is. What can I do?

You may describe the discrepancy in the "dispute box" within the application. You may then proceed and submit your application. If you are experiencing an error with the HUBZone maps, please refer to the FAQ "The HUBZone Maps incorrectly plotted my address. Can you fix the map?" below.

If I own the company applying for HUBZone certification, should I include myself when calculating the number of employees?

Yes. Additionally, any individual with an ownership interest in and who works for the HUBZone firm a minimum of 40 hours per month is considered an employee regardless of whether or not the individual receives compensation.

How does SBA define the term "reside" in reference to the employee residency requirement?

The term reside means to live in a primary residence at a place for at least 180 days, or as a currently registered voter, and with intent to live there indefinitely. Employers should be aware that it makes no difference which HUBZone their employees reside in. An employee can reside in one HUBZone and work in another and meet the standards for this residency requirement.

How does SBA define the term "employee" in reference to the employee residency requirement?

Employee means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours per month. This includes employees obtained from a temporary employee agency, leasing concern, or through a union agreement or co-employed pursuant to a professional employer organization agreement.

SBA will consider the totality of the circumstances , including criteria used by the IRS for Federal income tax purposes and those set forth in SBA's Size Policy Statement No. 1, in determining whether individuals are employees of a concern.

Volunteers (i.e., individuals who receive deferred compensation or no compensation, including no in-kind compensation, for work performed) are not considered employees.

Does SBA combine employees from affiliated companies when determining if there are enough living in a HUBZone?

It depends. SBA considers the totality of circumstances to determine whether an individual is an employee of the HUBZone firm or applicant.

For example, Company A is not qualified for the program. The owners of Company A set up Company B, with a few employees, most or all of whom are HUBZone residents. Company B lists a principal office location in a HUBZone and seeks HUBZone certification. Both Company A and B are in the same line of work. When Company B gets a contract, it uses Company A's employees, equipment etc. Or, it subcontracts all or most of the work to Company A. In these situations, the SBA has used the totality of circumstances to determine that the employees of Company A are actually employees of Company B (or vice versa). As a result, Company B may not meet the principal office and/or the 35% employee HUBZone residency requirement when the employees from Company A are added the to the employees from Company B.

I just hired a new employee. How soon can I apply?

You can apply at any time you believe you are eligible. However, in order to count that individual as an employee toward the principal office and 35% HUBZone residency requirement, you must be able to provide documents (e.g., payroll records), which cover the date of your application, showing that the employee worked a minimum of 40 hours in that month.

How does SBA define the term "principal office?"

It's the location where the greatest number of employees at any one location actually perform their work, except for construction and service industries, which have exemptions based on their occasional need to assign employees at the contract location.

Is the principal office the same as the firm's headquarters?

The "principal office" does not have to be the company's headquarters. It could happen that a small business might have a headquarters in a non-HUBZone location and establish a principal office within a HUBZone locality and still qualify legitimately for program participation.

If my small business has several offices and one is qualified as a "principal office" that serves as the basis for a HUBZone designation, can all my offices claim HUBZone certification?

Yes, HUBZone is a status that applies to the entire business. This designation will remain in effect as long as any of the firm's locations meet the test for and are certified as a "principal office" for HUBZone certification (assuming all other eligibility requirements are similarly maintained).

Can my business qualify for HUBZone certification if we just moved into a HUBZone?

An existing business that chooses to move to a qualified HUBZone area is eligible so long as:

• It is small by SBA standards;
• It is owned and controlled at least 51% by U.S. citizens, a Community Development Corporation (CDC), an agricultural cooperative or an Indian tribe;
• At least 35% of its employees reside in a HUBZone. Employees must live in a primary residence within that area for at least 180 days or be a currently registered voter in that area

Does a business on an Indian Reservation have to be Indian-owned to qualify for the HUBZone Program?

No. As long as the principal office of the business is located on an Indian reservation and meets all other eligibility criteria, it can become HUBZone certified.

What supporting documents will I need to submit?

You will be required to submit different supporting documentation based on your ownership structure:

• Corporations must submit documents described in the Corporation Document Request.
• Sole Proprietors must submit documents described in the Sole Proprietor Document Request.
• Partnerships must submit documents described in the Partnership Document Request.
• LLCs must submit documents described in the LLC Document Request.

We encourage all applicants to use these lists to begin assembling supporting documentation prior to the formal request from the HUBZone Program. However, please DO NOT SEND ANY DOCUMENTS TO THE HUBZONE PROGRAM PRIOR TO THAT FORMAL REQUEST OR THEY WILL BE DESTROYED.

Can the HUBZone office expedite my application?

To ensure fairness to all applicants, the HUBZone applications are processed on a first come/first serve basis.

Does a HUBZone Joint Venture (JV) need to be certified as such?

Since it is unlikely that it would meet the ownership and control requirement, the HUBZone regulations do not provide for approvals of HUBZone JVs. Joint ventures are generally owned by one or more business concerns and therefore are not directly owned 51% by individuals who are United States citizens as required by 13 FR 126.200(b)(1).

There is one exception to this general rule.  By statute, a HUBZone small business can be:

1. an ANC owned and controlled by Natives (determined pursuant to section 29(e)(1) of the ANCSA); or
2. a direct or indirect subsidiary corporation, joint venture, or partnership of an ANC qualifying pursuant to section 29(e)(1) of ANCSA, if that subsidiary, joint venture, or partnership is owned and controlled by Natives (determined pursuant to section 29(e)(2)) of the ANCSA).  

If the JV itself has employees working for it, it does not have to meet the 35% employee residency requirement because the JV is not a HUBZone certified entity that had to abide by the HUBZone eligibility requirements – correct?

Correct – the JV is not the HUBZone certified company.  However, we will look at the employees in the JV to see if they are really employees of the applicant firm by using the totality of circumstances policy.  If JV employees perform work for the applicant firm, they may be considered to be employees of the applicant firm and would be counted in the 35% calculations as well as in the determination of principal office. 

I have a HUBZone JV which was awarded a HUBZone set-aside contract. However, the SAM profile for the HUBZone Joint Venture does not display its HUBZone certification status. What do I do? My contracting officer wants to know how the agency can obtain HUBZone credit.

The HUBZone regulations do not provide for approvals of HUBZone JVs. Consequently, when two HUBZone small business concerns form a JV (in accordance with 13 CFR 126.616), the JV's SAM profile does not list its HUBZone status.

In addition, we note that the FAR does not specifically address registration of joint ventures in the SAM. It only states that: "Prospective contractors shall be registered in the [SAM] database prior to award of a contract or agreement," with certain exceptions. FAR § 4.1102. In addition, the FAR requires that all parties to the joint venture sign the contract:

(d) Joint ventures. A contract with joint ventures may involve any combination of individuals, partnerships, or corporations. The contract shall be signed by each participant in the joint venture in the manner prescribed in paragraphs (a) through (c) above for each type of participant. When a corporation is participating, the contracting officer shall verify that the corporation is authorized to participate in the joint venture. FAR § 4.102.

Therefore, if each business concern or participant to the joint venture must sign the contract, then if each business concern or participant to the joint venture is registered in SAM that could satisfy the FAR registration requirements of § 4.1102.

In any event, we understand that in the past, agencies have entered in the name of one of the HUBZone JV partners in the Federal Procurement Data System (FPDS) to get the HUBZone credit.

---

Designations and the HUBZone Maps

How can I find out if my business is located in a HUBZone?

Use the HUBZone Maps to determine if your principal office is located in a HUBZone. You can search for a specific address, or enter geographic coordinates.

How can I find HUBZones in my area? I don't have a specific address in mind.

Using the HUBZone Maps, you can generate maps and tables of Qualified Census Tracts, Qualified Nonmetropolitan Counties, Qualified Indian Lands, or Qualified Base Closure Areas by state or county.

What are the different types of HUBZone designations?

A HUBZone may be one of the following:

• A qualified Census Tract (QCT)
• A qualified Nonmetropolitan County (QNMC)
• A qualified Indian Reservation (QIR)
• A Qualified Base Closure Area (QBA)
• A Redesignated Area

How are HUBZones designated?

The SBA uses information obtained from the Department of Housing and Urban Development (HUD), the Bureau of the Census, the Bureau of Labor Statistics (BLS), the Department of Interior, Bureau of Indian Affairs and the Department of Defense. The HUBZone areas are designated by statute and draw upon determinations and information obtained by other agencies. The SBA does not have discretion when it comes to designating HUBZones. You can read more about each specific type of designation below.

What is a Qualified Census Tract (QCT)?

The US Department of Housing and Urban Development (HUD) designates Qualified Census Tracts (QCTs) for purposes of the Low-Income Housing Tax Credit (LIHTC) program. The LIHTC program is defined in Section 42 of the Internal Revenue Code of 1986. The LIHTC is a tax incentive intended to increase the availability of affordable rental housing.

The LIHTC statute provides two criteria for QCT eligibility. A census tract must have either:

1. a poverty rate of at least 25 percent; or
2. 50 percent or more of its householders must have incomes below 60 percent of the area median household income. The area corresponds to a metropolitan or a non-metropolitan area.

Further, the LIHTC statute requires that no more than 20 percent of the metropolitan area population reside within designated QCTs (This limit also applies collectively to the nonmetropolitan counties in each state). Thus, it is possible for a tract to meet one or both of the above criteria, but not be designated as a QCT.

The Census Bureau defines the boundaries of Census tracts in cooperation with local authorities every ten years for the purposes of the decennial census and, following a public comment period, has completed defining tract boundaries for the 2010 Census. Note that when census tract boundaries are set, they remain unchanged for the next decade. Thus, tract boundaries will not be changed until the 2020 Decennial Census.

A QCT may be located in a nonmetropolitan county or metropolitan area.

What is a Qualified Nonmetropolitan County (QNMC)?

A Qualified Nonmetropolitan County is any county not located in a metropolitan area and meets any or all of the following three criteria:

1. the county's median household income is less than 80% of the nonmetropolitan state median household income, based on the most recent data available from the Census; or
2. the county's unemployment rate is not less than 140 percent of the average unemployment rate for the United States or for the State in which such county is located, whichever is less, based on the most recent data available from the BLS; or
3. the county includes a Difficult Development Area (DDA), as designated by HUD in accordance with section 42 of the Internal Revenue Code of 1986, within Alaska, Hawaii, or any territory or possession of the United States outside the 48 contiguous States.

What is a Qualified Base Closure Area (QBA)?

A Base Closure Area means the lands within the boundaries of a military installation that was closed through a privatization process under the authority of the Defense Base Closure and Realignment Act of 1990, the Title II of the Defense Authorization Amendments and Base Closure and Realignment Act, the Section 2687 of title 10, United States Code, or any other provision of law authorizing or directing the Secretary of Defense or the Secretary of a military department to dispose of real property at the military installation for purposes relating to base closures or redevelopment, while retaining the authority to enter into a leaseback of all or a portion of the property for military use. Once the base is effectively closed, with land surplus to be used for purposes of economic development of the area, it will be HUBZone designated for a period of 5 years, beginning on the official date of closure and ending the same date, five years later. See the definition at 13 CFR § 126.103.

With the exception of providing SBA the designations of closed military base areas with surplus of lands to be used for economic development of the affected areas, none of the agencies that recognize them have any relationship with the HUBZone program.

What is a Qualified Indian Land?

Qualified Indian Lands are areas within the boundaries of Indian reservations. Indian reservation has the same meaning as, 1) the term "Indian Country" in 18 U.S.C. 1151, and, 2) a specific definition in the State of Oklahoma. Please see 13 CFR § 126.103 for details.

What is a HUBZone Redesignated Area?

The SBA Act provides for grandfathering QCTs and QNMCs that lose their HUBZone eligibility. During this grandfathering period, the area is termed a redesignated area. The redesignation expires on the later of the date on which the Census Bureau publicly releases the first results from the 2010 decennial census, or three (3) years after the date on which the census tract or nonmetropolitan county ceased to be qualified (i.e., became redesignated).

Every year, some redesignated HUBZones expire. If your firm's principal office is in a redesignated HUBZone that is approaching expiration or your firm's employees reside in such an area, please refer to the Maintaining Certification; Decertification section for details on what you can do.

When are the maps updated?

The maps are updated several times a year as new data becomes available. Please refer to the table below for an idea of how often a designation could change.

HubZone Type	Subtype	Data Update Frequency	Source Data Agency
Qualified Census Tract	-	Every 5 years	Department of Housing and Urban Development
Qualified Nonmetropolitan County	Qualified by unemployment	Annually	Bureau of Labor Statistics
	Qualified by income	Annually	Census Bureau
	Qualified Difficult Development Area (DDA)	Annually	Department of Housing and Urban Development
Qualified Indian Land	-	As necessary	Bureau of Indian Affairs
Qualified Base Closure Area	-	As necessary	Department of Defense

See the maps page for the latest announcements and updates.

The HUBZone Maps incorrectly plotted my address. Can you fix the map?

No mapping platform can accurately plot every address. If you believe the HUBZone Maps have located your office at the wrong place, you can email a detailed description of the error to Hubzone@sba.gov for additional assistance.

---

Maintaining Certification; Decertification

How long does the HUBZone certification last?

When you become HUBZone certified, you may continue to have this status indefinitely so long as you meet all of the eligibility requirements at all times. Additionally, you must undergo recertification every three (3) years. Unless it is determined that you are no longer meeting all of the requirements, you may be continuously certified throughout this period.

Where should I report material changes?

Report material changes to hzmcn@sba.gov.

What is a "material change"?

A "material change" includes, but is not limited to:

• Change in the ownership
• Change in business structure
• Change in principal office
• Failure to meet the 35% HUBZone residency requirement

What happens if I fail to report a material change?

Any HUBZone firms found to misrepresent themselves during their HUBZone Program participation or on a Federal contract could be subject to a range of civil or criminal penalties and/or suspension or debarment from Federal contracting.

If I follow the new FAR rule on nondisplacement of qualified workers, does this mean I don’t have to have my principal office in a HUBZone or at least 35% of my employees residing in a HUBZone?

No, you still have to meet the HUBZone program’s requirements to remain eligible for the program.

Does the FAR nondisplacement rule create an exception for HUBZone small business concerns?

No, the FAR rule does not create an exception.  The final rule, however, does take into account the effect Executive Order 13495 may have on HUBZone small business concerns. Specifically, the rule sets forth a policy statement and a paragraph in the contract clause, which state that nothing in Executive Order 13495 can be construed to permit a contractor or subcontractor to fail to comply with any provision of other Executive Order or law. This would include a HUBZone small business concern's compliance with the HUBZone provisions of the Small Business Act and any contractor's or subcontractor's compliance with Executive Order 11246 (Equal Employment Opportunity) or the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Therefore, HUBZone small business concerns are not exempt from the Executive Order; instead, the policy statement and clause explain that HUBZone small business concerns must try to meet the Executive Order’s requirements in tandem with the HUBZone program's requirements.

How can I meet both requirements(the FAR rule and HUBZone) in tandem?

HUBZone small business concerns must ensure they comply with the statutory and regulatory requirements of the HUBZone program, especially as they relate to the requirement to ensure that at least 35% of its employees reside in a HUBZone.  A HUBZone small business concern can meet the requirements of Executive Order 13495 and the HUBZone program requirements by first providing a right of first refusal to the HUBZone residents of the predecessor contractor.  If necessary to reach the residency threshold, the successor HUBZone SBC would next extend offers of employment to qualified residents of a HUBZone who were not employees of the predecessor. The HUBZone SBC could next extend offers for the remaining vacancies to non-HUBZone resident qualified employees of the predecessor awardee.  

At all times, the HUBZone SBC would need to first ensure that it meets the statutory requirements of the HUBZone program so that it is not decertified, and must consider the predecessor's employees pursuant to the Executive Order in doing so.

My principal office is in and/or some of my employees live in a HUBZone which says "Redesignated until October 201X (i.e., October 2013, October 2014, etc). What happens in October 201X?

On or after October 1, 201X all certified HUBZone small businesses whose principal office is located in a redesignated HUBZone that has expired will be proposed for decertification. Your firm will have 30 days to respond to the proposed decertification letter.

What can I do in the meantime?

Conduct an eligibility self-evaluation to see if on October 1, 201X 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 HUBZone.

How do you know if a principal office or employee residency address is in a redesignated HUBZone that is about to expire on October 1, 201X?

Go to the HUBZone maps and check the address. If the map result shows that the address will be "Redesignated until October 201X" then the address is in a HUBZone due to expire on October 1, 201X.

What can I do if I see that, effective October 201X, my firm will not meet the 35% HUBZone residency and/or the principal office requirement(s)?

Your firm will not be eligible to submit an offer or receive an award of a HUBZone contract as of October 01, 201X. 13 CFR 126.501 You can submit a completed voluntary decertification agreement and reapply once a) 90s days has passed from the voluntary decertification and b) your firm meets all of the eligibility requirements. Note that the voluntary decertification form may still have the old one year waiting period to apply. If this is the case, you may still use this old form and be able to reapply ninety (90) calendar days from the date of the voluntary decertification.

Under what circumstances will SBA propose decertification for my firm?

Your firm will be proposed for decertification if you fail to comply with the eligibility requirements at any time. You will have 30 days to respond to the proposed decertification letter.

I voluntarily decertified/was decertified by SBA/was declined. How long until I can reapply?

You may reapply 90 days from the date of any of the above actions, provided that your firm has overcome all reasons for decline or decertification through changed circumstances and it is currently eligible.

What happens to my current HUBZone contracts if I voluntarily decertify?

If you are working on a HUBZone contract at the time you voluntarily decertify, you may continue to work on the contract.

Can an option on a HUBZone contract be exercised if I voluntarily decertify?

In most cases, the contracting officer will be required to follow FAR subpart 17.2 in deciding whether to exercise an option.

Can I submit a bid after the material change which affects my eligibility but before I am effectively decertified?

The HUBZone regulations, 13 CFR 126.601(c), 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. Note that FAR clause 51.219-3, "Notice of Total HUBZone Set-Aside or Sole Source Award" and 52.219-4, "Notice of Price Evaluation for HUBZone Small Business Concerns" both require the HUBZone offeror to provide the Contracting Officer a copy of the notice required by 13 CFR 126.501 if material changes occur before contract award that could affect its HUBZone eligibility. In other words, if you are an offeror for a HUBZone contract, you would be required to notify the Contracting Officer if your principal office is no longer in a HUBZone or if you no longer meet the 35% HUBZone residency requirement.

---

Additional Help

I have a general question I would like to ask. What number can I call?

The public is invited to call 1-888-858-2144 Access code 3061773# for scheduled HUBZone Office Hours. This is an interactive conference call where HUBZone staff presents a specific eligibility topic followed by a general question and answer session.

Who can attend the office hours?

Anyone can attend but this helpline open forum is best suited for firms that are currently certified and want to assure that they remain certified and for those businesses that are considering applying for HUBZone certification.

Firms seeking a specific status of their application or that have questions about the supporting documentation requested are encouraged to e-mail directly their SBA HUBZone Business Opportunity Specialist working on their application. This person is in the best position to provide this type of individual assistance.

What if I need more help?

If you are having map server issues, or the address cannot be found or is miss-plotted please email HUBZone@sba.gov. Please write the nature of your concern in the subject line of the E-mail, for example, "Mapping question," or "Address not found."

You may also email your specific question, with as much detail as possible, to Hubzone@sba.gov.

Please email GLS@sba.gov for problems accessing the General Login System (GLS).

Access https://www.sam.gov/ for assistance with your firm’s profile in the System for Award Management system (SAM).

Your SBA district office can provide local assistance including certifications, financing, etc. The list of local offices is here.

The SBA Answer Desk at 1-800-827-5722 and answerdesk@sba.gov can also answer general questions.

For more information about Government Contracting, visit: http://www.sba.gov/contracting.