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 Geographic Area changes October 1, 2011
The United States Small Business Administration has created an information briefing [text version available here] that highlights the HUBZone area changes as a result of the 2010 Census and the impact these changes may have on HUBZone firms. If you have any questions, please feel welcome to contact the HUBZone helpdesk at hubzone@sba.gov or 202.205.8885.
An address lookup search replaces the HUBZone maps from October 2011 to January 2012
Over the next three months, the HUBZone maps will be undergoing significant technical enhancements. As a result, the maps will be taken down on October 1, 2011. An address lookup search will provide users with the ability to enter an address and determine whether it is qualified or not. Contact the HUBZone Help Desk at (202) 205-8885, or via email at hubzone@sba.gov if you need any assistance.
Important announcement to the HUBZone Small Business Concern (SBC)
Major changes take effect on 10/1/2011 that may affect HUBZone’s eligibility. (Read full text of the Notice here.) Specifically, all redesignated HUBZones due to expire on the date on which the Census Bureau publicly releases the first results from the 2010 decennial census are expiring effectively 10/1/2011.
On or after October 1, 2011 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, 2011 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 by going to the HUBZone locator and search all the applicable addresses. If the map result shows that the address will be qualified "at least until June 1, 2011" then the address is in a HUBZone due to expire on October 1, 2011.
Contact the HUBZone Help Desk at (202) 205-8885, or via email at HUBZone@sba.gov if you need any assistance.
Notice to the HUBZone Small Business Concern (SBC) that has determined that it will not meet the 35% HUBZone residency and/or the principal office requirement(s) effective 10/1/2011
The HUBZone SBC may submit a completed voluntary decertification agreement. The concern may reapply for HUBZone certification 90 days from the date of the voluntary decertification if it meets HUBZone eligibility criteria at the time.
Declined or decertified concerns can reapply ninety (90) calendar days after the declined or decertification decision is rendered
As of July 21, 2011, a declined or decertified HUBZone small business can reapply ninety (90) calendar days after the declined or decertification decision is rendered, rather than wait one year to reapply, provided that it meets the eligibility requirements at that time of application.
Under the old regulations, once declined or decertified, a small business had to wait one year to reapply. At the time it promulgated that rule, the SBA believed that a one year wait was sufficient time for a small business to come back into compliance. However, in many cases, the small business only has to hire a few additional HUBZone residents. In other cases, such as those small businesses with principal offices in HUBZone areas that are about to expire, the SBA has provided several years warning about the expiration. In preparation, some businesses may be planning to move to HUBZone areas. It would not serve the purposes of the program to make such small businesses wait one year to reapply. The complete regulatory language is available in the Federal Register and has been incorporated in Title 13 of the Code of Federal Regulations Part 126 – HUBZone Program.
Important news to HUBZone small business concerns (SBCs) in redesignated areas that are losing HUBZone status on October 1, 2011
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 October 1, 2011. You must 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:
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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, 2011. At that time it is in compliance with HUBZone eligibility criteria. On October 1, 2011 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, 2011. 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 (202) 205-8885, or via email at HUBZone@sba.gov if you need any assistance.
News for Businesses Applying for HUBZone Certification
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.
Before you submit your HUBZone application, consider how the expiration of the redesignated areas will impact your business.
Final determinations 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:
- could receive the final determination only weeks prior to the expiration of the redesignated areas and as a result, SBA would have to propose your business for decertification from the program in October 2011; or
- will be denied certification because the principal office is no longer in a HUBZone and/or the business no longer meets the HUBZone residency requirement.
Contact the HUBZone Help Desk at (202) 205-8885, or via email 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.
