The U.S. Small Business Admin-istration’s HUBZone Program is an exciting initiative designed to stimulate economic development by providing federal contracting opportunities to small businesses located in eligible areas. A HUBZone is a “historically under-utilized business zone.” The HUBZone Program marked its first full year of operation in April and has certified more than one thousand firms in every state and the District of Columbia. There are 32 designated HUBZones in Rhode Island. The 32 Rhode Island HUBZones are located in Providence, Pawtucket, Woonsocket, Central Falls and Newport.
A company may be designated as HUBZone qualified if its principal office is located within one of the designated census tracts, is owned and controlled by one or more U.S. citizens, and at least 35 percent of its employees reside in a HUBZone. To fulfill this requirement, employees must live in a primary residence within a HUBZone for at least 180 days or be a currently registered voter. The SBA administers the program and certifies companies for eligibility.
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The HUBZone Program serves New Market communities with low income or high unemployment. The program provides both federal prime contract and sub contract benefits.
The federal government purchases about $200 billion worth of goods and services annually. Congress has set a goal of 3 percent of the total value of all prime contracts for HUBZone contracting opportunities, phased in over five years and will reach nearly $6 billion dollars in Fiscal Year 2003.
HUBZone firms are eligible for a wide variety of contracting opportunities. They can also qualify for higher government guaranties on surety bonds for construction and service contract bids. The SBA will increase its guaranty on surety bonds from 80 percent to 90 percent, making it easier for them to compete for government and private sector contracts.
Existing businesses that choose to move to qualified areas are also eligible. Those that are 8(a) qualified and located in a HUBZone or decide to relocate, could be eligible for contracting opportunities under both programs.
Special computer mapping software on the SBA web site allows firms to determine quickly whether they are located in a qualified HUBZone. Just go to the web site, www.sba.gov/hubzone, and enter your firm’s address according to the easy-to-follow instructions. State-of-the-art software allows potential applicants to find out immediately if they qualify for the program. The system also allows searches by address, county, or town and maps out metropolitan areas, Native American reservations and non-metropolitan counties that qualify by income, unemployment rate, or both.
Companies are encouraged to apply for certification by using the electronic application on the HUBZone web site. This will speed up the processing and help ensure that your firm can quickly begin participating in the program. Applicants can also download a paper version of the application form from the web site and submit it to the HUBZone Office at the SBA’s Washington, DC headquarters.
A useful application guide and other helpful information are also available on the web site. Once approved, eligible firms will be listed on the SBA’s PRO-Net database. The database allows contracting officers around the country to locate firms eligible for federal contracting opportunities.
Until September 30, 2000 the HUBZone Program applies only to the procurements of the following federal agencies: Departments of Agriculture, Defense, Energy, Health and Human Services, Housing and Urban Development, Transportation, and Veterans Affairs, the Environmental Protection Agency, General Services Administration, and National Aeronautics and Space Administration.
After September 30, 2000 the program will apply to all federal departments and agencies.
For more information about the HUBZone Program, visit the SBA web site at www.sba.gov/hubzone, or contact Norm Deragon at the Rhode Island District Office at (401) 528-4576 or via e-mail at
normand.dera-gon@sba.gov.
