HUBZone - A Great Way To Get Started
Asked which minority certification is best, most will reply 8(a) as the pinnacle of government set-asides. Though, it does offer the most and best perks, I personally see less business (contracts) derived from it than HUBZone Certification. One primary reason is that it is often overlooked. As the calendar nears September (end of the federal government fiscal year), purchasing and contracting officers go looking, having forgot to fulfill HUBZone requirements.
HUBZone is a federal designation through the SBA that is geographically based. It is not a minority set-aside (technically the government doesn’t have minority set-aides, but that is another post). The SBA takes the census and decides on geographic areas that have high unemployment/underemployment and/or areas that have significant low-income/poverty per capita. Then you as a business have two requirements: 1). Maintain a principal office within these boundaries, and 2). Have a percentage of your employees in the geographic region. Here is the exciting part, as this is an incentive program, you are allowed to pick up and move office or employees into such regions for purposes of qualifying for the program! Almost all other set-aside programs you have to be sneaky about molding your business to qualify.
That is what makes this one my favorite set-asides is its ease of qualifying. Additionally, the paperwork is much less than 8(a) and turn around time for approval is quicker. I have sat at the computer, had two years of financials and other necessary information, completed the online application within two hours. Of course, being HUBZone you are allowed other designations, it is great as a starter “minority” certification or add-on. In CCR you want to have as many designations as you can qualify for. HUBZone is a great starter designation for government contracting preference, a place to get your feet wet.
You may also enjoy 8(a)? Is it worth it?.
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