HUBZone Eligibility Requirements

Frequently Asked Questions

What are the basic eligibility requirements to get HUBZone certified?

To qualify for HUBZone certification, you must meet the following requirements:

  1. Your firm must be considered a small business according to SBA size standards.
  2. Your firm’s principal office must be located in a qualified SBA designated HUBZone.
  3. Your firm must be at least 51% owned and controlled by persons who are US citizens.
  4. You must have at least 35% of your employees living in a HUBZone.

Benefits of the SBA HUBZone certification?

Aside from a target of at least three percent of all federal prime contracting budget going to historically underutilized business zones certified businesses each year, companies can take advantage of the following federal procurement preferences:

  • A 10 percent price evaluation preference in competition for federal contracts for requirements above the simplified acquisition threshold. This means that HUBZone-certified companies may bid up to 10 percent higher than the lowest bid from a non-HUBZone-certified company
  • Compete with only other HUBZone-certified companies for set-aside contracts
  • If the contracting officer determines that only one HUBZone-certified company can meet the requirement for a contract than that company can negotiate for it so long as the offer is not more than $5.5 million for manufacturing companies, and not more than $3.5 million for other companies
  • Construction contracts exceeding $1 million, and all other prime contracts exceeding $550,000, must include, to the extent practicable, subcontracting plans that provide opportunities for HUBZone-certified companies.  

HUBZone-certified companies may compete for contract awards under other socioeconomic programs as well.

How do you qualify as a HUBZone resident?

Live at a current location over 180 days or be currently registered to vote from that location.

What documentation does the SBA require to determine HUBZone residency?

A copy of the applicant’s Driver’s License or State ID.

How does the SBA define the term “Principal Office”?

A principal office or principal location is where the greatest numbers of employees conduct work

Please note, the applying company’s principal office is different from a company’s headquarters, which is where the firm’s management is located.

How is a principal office location different from construction or service firms?

Construction and service firms are exempt from this rule based on their occasional need to assign employees to certain locations. The firm must still have an office located within the HUBZone and have one full time employee there. 

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 of my offices claim HUBZone certification?

Yes, HUBZone status applies to the entire business, provided all other criteria for being a HUBZone-certified business are satisfied. 

How much time is typically used to complete the HUBZone application?

It usually takes two weeks to complete the HUBZone application, depending on the complexity of your information. 

How long does it typically take to become HUBZone-certified?

Once your application is authorized, the SBA provides 10 business days for the uploading of all supporting documents.

When the SBA has deemed your application complete, it will take approximately 90-120 days to be notified of a decision by the SBA. 

What is LIBERTY8a success rate on HUBZone applications prepared?

Our success rate is over 99%.

What is the fee for the HUBZone Application Completion Service?

Our HUBZone certification service fee is $1,700.

Where can I find more information about HUBZone Certification?

You can view the latest SBA HUBZone regulations (CFR: Title 13:Part 126) and read up on the extensive rules and regulations that govern this program.

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