HUBZone Certification for Small Businesses (2024)

The 8(a) Program, sometimes stylized as 8(a), is a business assistance program for small disadvantaged businessesowned by socially and economically disadvantaged individuals.

This program is offered by the U.S. Small Business Administration (SBA) and provides a route to win government contractsfrom the U.S. federal government.

This guide will explore the HUBZone program, ways to get HUBZone certification, and how small businesses can take advantage of HUBZone government contracting opportunities to increase their government sales.

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 businessprograms, 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.

Many government contracts specify that small businesses must do a certain amount of the work or are set asideentirely for small businesses. In the case of HUBZone, businesses must have the proper certification to be eligible for these opportunities.

To qualify for the HUBZone program, your company must be certified 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 that are living in a HUBZone

The current HUBZone map can be found on the SBA webpage. Use this map to determine if your small business is located in a HUBZone and if it is eligible for HUBZone certification.

Becoming certified is the most important step to win HUBZone government contracts. Once your business meets the qualifications for HUBZone, it should ask these questions to help develop a strategy that has the best chance of success.

1. How much does the government spend on what my company sells?
2. How much does the government spend with HUBZone companies, in general and within my industry?
3. Which department/agencies seem to be more inclined to work with HUBZone primes, in general and in my industry?
4. Do HUBZone-friendly agencies use set-asides?
5. For top HUBZone companies, how are they getting the work?
6. How do I find opportunities?

These tips can help small businesses make the most of their HUBZone certification.

Know Where to Look for HUBZone Opportunities

HUBZones are typically found in communities where the average household has low income and/or high unemployment rates. Although this set-aside was created to allow for further development amongst these areas, this set-aside has been at times underutilized by the government.

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 themselves as it is beneficial for 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 like the Department of Defense, the Navy, and the Army have led the way when it comes to 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.

Many successful HUBZone-certified small businesses use tools like GovWin IQ, which offer a wealth of information on the government market, allowing them to keep up with potential and current government contracting opportunities.

“We can track potential revenue streams that keep us on target for our annual and future goals.”

- Craig Camacho, Business Operations Manager, GPSI Guam

Small businesses can use GovWin IQ’s industry-leading platform of government market intelligence to identify new contracting opportunities, well in advance of the release of bids or RFPs and build a sustainable government contracting pipeline.