The HUBZone Program generally has received less attention from SBA than its counterparts in the 8(a) Business Development, WOSB, and SDVOSB Programs. However, over the past couple years, SBA has given it a little more attention than it has received in the past, with proposed changes in 2024 later becoming finalized that same year to make some aspects of the program a little stricter. This might reflect a new approach to the HUBZone Program. SBA has recently proclaimed that it has approved several petitions for new Governor-Designated Covered Areas, expanding the HUBZone map in 252 areas. Here, we explore what this actually means and how much of an impact this might have.

In October 2026, SBA announced that, since January 2025, it has approved 18 governors’ petitions for new Governor-Designated Covered Areas under the HUBZone Program. Per SBA, this apparently establishes 252 such areas. Now, by the very nature of Governor-Designated Covered Areas, these areas are primarily rural in nature. 13 C.F.R. § 126.104 states that such an area can only be “located outside of an urban area, as determined by the Bureau of the Census, with a population of not more than 50,000.” The Governor Designated Covered Area is not a brand-new creation. It was implemented via the FY 2018 National Defense Authorization Act. But it does appear there is a concerted push by SBA to see it utilized more. A brochure produced by SBA in April 2026 describes a “HUBZone Program’s Governor-Designated Areas Initiative.” This suggests that SBA is actively pressing for states to designate such areas.

But is this initiative a real change from past SBA practice? SBA has not just started approving these petitions since January 2025. In May 2021, SBA announced approval of 35 new Governor-Designated Covered Areas in Illinois, the first approval of a governor’s petition for these sorts of covered areas. A similar expansion was announced in December 2022, with 25 new Governor-Designated Covered Areas approved for Louisiana. By March 2023, per SBA, 13 governors had requested additional HUBZone areas, adding 231 rural areas to the HUBZone map.

Thus, it doesn’t appear that there has been any serious change in how SBA or state governors have been approaching the matter since SBA first approved a governor’s petition in 2021. It would seem there has been a slight uptick in the rate of approval, but it appears to be in accord with the practice of SBA prior to the change in administrations.

That being said, that doesn’t mean that this should be immediately dismissed. SBA’s announcement is particularly notable in light of how it has approached other programs, especially the 8(a) Program. SBA appears to look upon the HUBZone Program with approval, at least with regards to rural areas. This could be something for those who have been affected by the recent shifts in SBA policy to consider. The HUBZone Program could see a sort of revitalization in light of the same, and it is very much worth reviewing your company’s location and employee makeup to see if this program could present a potential opportunity. Of course, if you do so, it is wise to check with a federal contracting attorney to see how these rules apply and what it might mean for your company.

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