Set-Aside Programs
HUBZone Contract Opportunities
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HUBZone certification gives businesses in economically distressed areas exclusive access to federal set-aside contracts and a 10% price evaluation preference in open competitions (per SBA).
What is HUBZone Certification?
The HUBZone (Historically Underutilized Business Zone) program is run by the SBA to encourage economic development in distressed communities. Certified businesses get access to federal set-aside contracts that non-HUBZone firms cannot bid on, plus a 10% price evaluation preference when competing in full-and-open solicitations. HUBZone-certified firms received $17.6 billion (SBA Annual Procurement Scorecard) in federal prime contracts in FY2024.
To qualify, your business must:
- Have its principal office located in a HUBZone
- Be at least 51% owned by U.S. citizens, a community development corporation, an agricultural cooperative, or an Indian tribe
- Have at least 35% of employees living in a HUBZone
- Qualify as a small business under its primary NAICS code
Certified HUBZone firms must recertify every three years to maintain status (per SBA).
How HUBZone Set-Asides Work
When a contracting officer determines a purchase is suitable for HUBZone set-aside, the solicitation is restricted to HUBZone-certified firms only. The agency must have a reasonable expectation that at least two HUBZone firms will submit competitive offers.
HUBZone set-asides are prioritized in the following order under the Small Business Act:
- 8(a) sole source (up to program limits)
- 8(a) competitive
- HUBZone set-aside (priority over other set-asides)
- SDVOSB, WOSB set-asides
- Total Small Business set-aside
HUBZone has statutory priority over SDVOSB and WOSB in the preference ordering, though contracting officers have some discretion.
Common HUBZone Contract Industries
HUBZone contracts span all industries. Some of the most common include:
- Construction and facilities maintenance
- IT services and support
- Professional and technical services
- Janitorial and grounds maintenance
- Manufacturing and supply
- Healthcare and social services
How to Search for HUBZone Solicitations
On SAM.gov, filter Contract Opportunities by Set-Aside Type: HUBZone Small Business. On EasyGov, click the HUBZone filter on the dashboard to see only HUBZone set-aside opportunities.
Browse HUBZone opportunities →Related Programs
Frequently Asked Questions
What is a HUBZone?
A Historically Underutilized Business Zone (HUBZone) is a geographic area designated by the SBA based on census data showing economic distress. HUBZones include qualified census tracts, qualified non-metropolitan counties, Native American lands, and base closure areas. The SBA maintains a HUBZone map where you can check whether your business location qualifies.
What is the HUBZone price evaluation preference?
When HUBZone firms compete in full-and-open competitions (not set-asides), they receive a 10% price evaluation preference. This means if a non-HUBZone firm bids $100, a HUBZone firm bidding up to $110 would be evaluated as if they bid the same amount. This gives HUBZone firms a competitive advantage even outside of set-aside competitions.
Can I lose my HUBZone certification if I move?
Yes. If your principal office moves out of a HUBZone area, or if your employee HUBZone residency rate falls below 35%, you can lose certification. The SBA recertifies HUBZone firms every three years and may decertify firms that no longer meet requirements. Moving to a new location requires checking whether the new address is in a HUBZone before relocating.
How many employees need to live in a HUBZone?
At least 35% of your employees must reside in a HUBZone. The residency requirement is based on employees' home addresses, not work addresses. When you apply, you'll need to document each employee's home address and verify it falls within a HUBZone.