Are you a small business owner looking for a way to gain a competitive edge in the federal contracting market? If so, you may want to consider applying for the HUBZone program, which offers preferential access to federal procurement opportunities for businesses that operate and employ people in historically underutilized business zones (HUBZones).
The HUBZone program is administered by the Small Business Administration (SBA), which certifies eligible businesses as HUBZone small business concerns (SBCs). To qualify for the program, a business must meet the following criteria:
- It must be a small business by SBA standards
- It must be owned and controlled at least 51% by U.S. citizens, a Community Development Corporation, an agricultural cooperative, a Native Hawaiian organization, or an Indian tribe
- Its principal office must be located within a HUBZone, which includes lands considered "Indian Country" and military facilities closed by the Base Realignment and Closure Act
- At least 35% of its employees must reside in a HUBZone
If you think your business meets these requirements, you can apply for HUBZone certification online through the SBA website. The application process is outlined in Subpart C of the HUBZone program regulations, which we will summarize in this blog post.
The first step is to submit a completed application and all documents requested by the SBA, such as tax returns, payroll records, leases, and ownership documents. You must also use the SBA website to verify that your principal office and the residences of at least 35% of your employees are within HUBZones.
The second step is to wait for the SBA to review your application and make an eligibility determination. The SBA may rely on the information you submitted, request additional information, conduct independent research, or verify the information before making a decision. The SBA will try to make its determination within 60 calendar days after receiving a complete package, but please note that there have been many reports of significant delays.
The third step is to receive the SBA's notice of approval or denial. If the SBA approves your application, it will notify you in writing and designate your business as a certified HUBZone SBC in the Dynamic Small Business Search (DSBS) system, which is used by federal agencies and prime contractors to find potential small business partners. You should check the DSBS system within 10 business days after receiving the notice and contact the SBA if your business does not appear as a certified HUBZone SBC.
If the SBA denies your application, it will notify you in writing and state the specific reasons for denial. You may request reconsideration of the decision by submitting a written request to the SBA within 30 calendar days after receiving the notice. While using an attorney is not required, it could be very beneficial to have someone knowledgeable assist with the appeal process. You may also reapply for certification after 90 calendar days if you believe you have overcome the reasons for denial and are currently eligible.
Once you are certified as a HUBZone SBC, you must maintain your eligibility and comply with the program requirements, such as reporting any changes that could affect your status, recertifying every three years, and retaining documentation for six years. You must also represent your HUBZone status accurately and truthfully when bidding for federal contracts. The SBA may conduct periodic examinations or investigations to verify your compliance and may decertify your business if it finds any violations.
The HUBZone program can be a valuable opportunity for small businesses that want to contribute to the economic development of distressed areas and gain an advantage in the federal marketplace. If you are interested in applying for the program, you can find more information and resources on the SBA website or contact your local SBA office for assistance.
If your company needs assistance with HUBZone certification or appeals, please contact Danielle Dietrich, Esq. at ddietrich@potomaclaw.com or 412-449-9141.
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