Rezoning (Part 2): Updates to the HUBZone Program

Very recently, we went through some more of the potential changes to the HUBZone Program from SBA’s proposed rule from August 23, 2024. In this post, we will look at the remaining proposed changes. SBA’s proposed rule would change HUBZone protests appeals, principal office requirements (which we did discuss a bit before here), HUBZone map concepts, and the HUBZone price evaluation preference (PEP).

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Rezoning (Part 1): A Look at SBA’s Proposed Changes to the HUBZone Program

A few weeks ago, SBA released a proposed rule that would, among other things, modify the HUBZone program. We took a look at some of these changes when the proposals were released. As we promised in that post, we stated we were going to discuss some other aspects of the proposed rule in later posts. Today, we’ll be looking at some of the other changes that SBA is proposing for the HUBZone program, as there’s a lot. In this post, we’ll be focusing on other changes to how HUBZone employees are determined, new rules on certification and decertification, and changes to the “attempt to maintain” rule with regards to maintaining 35% HUBZone resident workforce. Some of these changes reflect a stricter approach from SBA that contractors should be on the lookout for.

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The HUBZone 35% Residency Requirement in Between Certifications

It is well established that, in order to be eligible for HUBZone certification or recertification, one of the requirements is that 35% of a company’s employees must reside in a HUBZone. That part is (relatively) straightforward. But, as we all know, employees might come and go at any time. This raises a few questions about what the requirement is when a company is preparing to bid on contracts as well as when performing them. We explore this question here.

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Govology Webinar: Understanding & Obtaining HUBZone Certification (2023 Update), March 21, 2023, 1:00PM EDT

The SBA revamped its HUBZone rules in the last few years, making several changes to the HUBZone program. However, we continue to see updates to how SBA interprets these rules as it puts out policy guidance frequently. In this webinar, government contracts attorneys Nicole Pottroff and John Holtz will discuss these changes and SBA’s related guidance. 

If you’re a HUBZone contractor trying to remain compliant or have thought about obtaining a HUBZone certification, please join us. Register here.

Back to Basics: Get in the Zone, The HUBZone

The SBA’s HUBZone  Program, short for “Historically Underutilized Business Zone,” is likely the SBA program that we hear the least about. Tucked away in Title 13, Section 126 of the U.S. Code of Federal Regulations, the HUBZone Program gives HUBZone participants benefits in multiple federal government contracting situations in an effort to revitalize historically underutilized business zones through increased employment opportunities, investments, and economic development. So, what exactly makes an area a HUBZone, and how can your small business be designated as a HUBZone participant? Read on to find out.

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HUBZone FAQ Update: Maps and Other Changes

The SBA’s HUBZone program can be a confusing program to understand and comply with. Keeping on top of the regulations requires keeping up on legislative and program changes on a revolving basis. The SBA has recently frozen the HUBZone maps and changed principal office rules. In a corresponding move, the SBA has updated the Frequently Asked Questions (FAQ) section for the HUBZone program to clarify some details on HUBZone Program rules.

Here are some key points you should know about this latest FAQ update.

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New HUBZone Program Guidance Sheds Light on Principal Office Long-Term Investment Rules

The HUBZone Program has released updated FAQs that provide guidance on important HUBZone rules and how SBA will be interpreting them. While these don’t have the authority of a regulation, the new guidance shows how SBA will come down on certain HUBZone questions that aren’t answered in the regulations. These include the details on long-term investment in a principal office as well as a few other rules. Read on for how SBA will interpret these rules.

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