August 2023: HUBZone Program Updates
INFORMATION NOTICE: EMPLOYMENT AND “ATTEMPT TO MAINTAIN” REQUIREMENTS
On August 23, 2023, SBA’s Office of the HUBZone Program published Info Notice 6000-849335, HUBZone Resident Employee Work Requirement and "Attempt to Maintain" Requirement (sba.gov) to remind existing and potential HUBZone certified firms about the requirement to provide legitimate employment opportunities to HUBZone residents. In addition, the notice reminds certified firms about their obligation to “attempt to maintain” the HUBZone residency threshold at all times while performing a HUBZone contract. Please read the Information Notice in its entirety to ensure your firm is meeting these requirements which are fundamental to the HUBZone Program mission.
FY 2022 SCORECARD: RECORD BREAKING UPDATE
HUBZone small businesses were granted $16.3 billion in federal contract awards making it the highest amount ever awarded to HUBZone firms in the program's history. See the full article here: Biden-Harris Administration Sets Record-Breaking $163 Billion in Federal Procurement Opportunities to Small Businesses | U.S. Small Business Administration (sba.gov).
HUBZone set-aside awards also increase by 17% in FY22 for a total of $3,415,432,391, the second highest amount since 2010. You can now access set-aside data by agency and set-aside type on SBA's Small Business Data HUB (sba.gov).
The chart below shows the historical dollars from FY 210 through FY 2022 for the combined total of HUBZone Set-Asides, HUBZone Sole Source, and HUBZone Price Evaluation Preference awards.
HUBZone Set Aside, Sole Source and PEP Dollars
FY 2010-2022
MAP UPDATE RESOURCES
The HUBZone map changed on July 1, 2023, to reflect thousands of new and expired HUBZone designations based on data from the 2020 Census. Check the new HUBZone map now to determine whether your principal office and employees are in a HUBZone. Your firm’s eligibility to participate in the program might be impacted if your principal office is located, or your employees reside, in an area that no longer qualifies as a HUBZone. Learn how to navigate the updated HUBZone map with our new instructional video.
Every five years the HUBZone program is required to update the HUBZone designations to ensure the program continues to serve the communities that are most in need of assistance. Most areas stay the same but some change. The 2023 map will be updated again in July 2028 to reflect changes to Qualified Census Tracts (QCTs) and Qualified Non-Metropolitan Counties (QNMCs). The map will also be updated in 2026 to reflect expiring Redesignated Areas, and throughout any year to reflect new and expiring Governor-designated covered areas and Qualified Disaster Areas as appropriate. Learn about the different types of HUBZone Designations to understand why some areas no longer qualify.
CONTINUING ELIGIBILITY REQUIREMENTS
As of fiscal year 2021, all certified HUBZone firms are required to recertify annually to their continuing eligibility as of the anniversary of their certification date. This includes attesting to meeting the principal office and 35% HUBZone residency requirements, according to the new map effective July 1, 2023.
To learn more about continuing eligibility requirements, including program examinations, please see the HUBZone website (HUBZone program | U.S. Small Business Administration (sba.gov)). Recertification and program examination notifications are sent to the email address listed on the firm’s DSBS profile so be sure that email is current and being monitored.
NEW RURAL HUBZONES
74 new rural communities in New York, New Mexico, South Dakota, and Michigan have received HUBZone designation as Governor-designated Covered Areas in 2023. This brings the total number of rural HUBZones designated by Governors to 308 across 17 states.
The Governor’s Initiative allows Governors to petition the SBA’s Administrator one a year to designate areas for HUBZone status. The number of areas included in the petition may not exceed 10% of the total number of covered areas in the state. A covered area is a census tract or county that is located outside of an urbanized area as determined by the Bureau of the Census, has a population of not more than 50,000, and has an average unemployment rate that is not less than 120% of the average unemployment rate of the US or the state (whichever is less). Approved Governor-designated covered areas are added to the HUBZone map with an expiration date of one year from the approval date, if the area still qualifies on the expiration date, the expiration is extended by one year.
Please see the linked Governor’s Initiative Fact Sheet and reach out to HZGovernors@sba.gov if you would like more information on this initiative or to see whether the area in which your business is located may qualify for the designation.
DFAS CALL FOR HUBZONE WHITE PAPERS
DFAS is hosting a virtual Small Business Expo for HUBZone vendors on November 1, 2023, and is seeking to hear from HUBZone certified firms with successful performance under the following NAICS: 541511, 541512, 541513, 541519 and 541611. Interested vendors should provide a White Paper with examples (use cases) of how they have applied innovative (and verifiable) solutions related to the NAICS and include a list of recent and relevant contracts (last 3 years), including customer, contract number (if DoD), dollar value, period of performance, and scope of the work. The white paper needs to be no more than 3 pages. Please mark each page of your white paper with “Proprietary Information. Do not disclose.” Qualified vendors should submit their white papers by September 13, 2023, as indicated in RFI. DFAS will review and invite selected vendors to showcase their solutions and capabilities to Agency program and procurement officials during the DFAS Small Business Expo.
QUESTIONS ABOUT THE HUBZONE PROGRAM
Visit the HUBZone website: sba.gov/HUBZone
HUBZone Helpdesk: HUBZone@sba.gov
HUBZone Office Hours: Get weekly eligibility assistance every Tuesday and Thursday form 2 PM- 3 PM ET by calling 208-391-5817; Conference ID: 278449067
