The HUBZone program is offered by the U.S. Small Business Administration (SBA) and provides a route to win government contracts from the U.S. federal government.
This guide will explore the HUBZone program, ways to get HUBZone certification, and how small disadvantaged businesses can take advantage of HUBZone government contracting opportunities to increase their government sales.
What is HUBZone?
A HUBZone is a historically underutilized business zone where the government is looking to foster economic activity, such as job creation.
Of the major U.S. federal small business programs, it is the only program not focused on the ownership of the business, but rather on the location of the business and its employees. The government aims to award at least 3% of federal contracting dollars to HUBZone-certified small businesses every year.
If you are a small business just starting to sell to the government and you're interested in working with HUBZone contracts as well as other methods of growing your government sales revenue, this guide offers tips and strategies your small business can't miss.
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HUBZone Certification
Many government contracts specify that small businesses must do a certain amount of the work or are set aside entirely for small businesses. For HUBZone, businesses must have the proper certification to be eligible for these opportunities.
To qualify for the HUBZone program, your company must obtain the proper small business certification by the SBA (Small Business Administration) and meet these qualifications:
- A small business that meets SBA size standards
- Located in a HUBZone
- Owned and controlled, at least 51%, by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe
- Made up of more than 35% of employees who are living in a HUBZone
The current HUBZone map is available on the SBA website. Use this map to determine if your small business is located in a HUBZone and if it is eligible for HUBZone certification.
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How to get HUBZone Government Contracts
Becoming certified is the most important step to winning HUBZone and small business government contracts. Once your business meets the HUBZone qualifications, ask these questions to develop a strategy with the best chance of success.
- How much does the government spend on what my company sells?
- How much does the government spend with HUBZone companies, in general, and within my industry?
- Which departments/agencies seem to be more inclined to work with HUBZone primes, in general, and in my industry?
- Do HUBZone-friendly agencies use set-asides?
- For top HUBZone companies, how are they getting the work?
- How do I find opportunities?
HUBZone Tips for Small Businesses
These tips can help small and minority-owned businesses make the most of their HUBZone certification.
1. Know Where to Look for HUBZone Opportunities
HUBZones are typically found in communities with low household incomes and/or high unemployment rates. Although this set-aside was created to allow for further development in these areas, it has at times been underutilized by the government.
2. Stay on Top of HUBZone Certification
The federal government wants to hit its 3% goal for HUBZone opportunities each year. Small Businesses that are eligible for the HUBZone program should register, as it benefits both the firm and the federal government.
The more qualified HUBZone firms, the closer the government gets to reaching the 3% goal.
Consider Different Federal Government Agencies and Departments
Historically, government entities such as the Department of Defense, the Navy, and the Army have led the way in HUBZone opportunities.
However, it can be worth paying attention to other agencies, as sometimes there can be less competition for these HUBZone set-asides and sole-source contracts.
Tools to Win HUBZone Government Contracts
Many successful HUBZone-certified small businesses use tools like GovWin IQ, which offer a wealth of information on the government market, helping them stay up to date on potential and current government contracting opportunities.
“We can track potential revenue streams that keep us on target for our annual and future goals.”
Small businesses can use GovWin IQ's industry-leading platform of government market intelligence to identify new contracting opportunities well in advance of bid or RFP releases and build a sustainable government contracting pipeline.
