SBA HUBZone Program Eligibility Criteria
Your business concern's principal office
must be located in a
qualified SBA designated HUBZone. Search
the SBA's Mapping system
and verify if your principal office is located in a qualified SBA
Definition of Principal Office:
Eligibility Criteria 2:
Principal office is defined as the location where the greatest
number of the business concern's employees at any one location
perform their work. However, for those business concerns whose
primary industry is service or construction, the determination
of principal office excludes the business concern's employees
who perform the majority of their work at job-site locations to
fulfill specific contract obligations.
Your business concern must be at least 51% unconditionally and
directly owned and controlled
by persons who are US citizens.
Definition of unconditionally and directly owned and controlled:
Eligibility Criteria 3:
Unconditionally and directly ownership means directly owning at
least 51% of the business concern. Ownership must be direct and
cannot be through another business or trust, unless the trust is
revocable and you are the sole grantor and trustee of the trust.
Control means both the day-to-day management and long term
decision making authority for the business concern. Generally,
you should be the highest ranking officer of the business too.
35% of your business concern's employees
must reside in a SBA
Definition of Employee and
Eligibility Criteria 4:
Employee means all individuals employed on a full-time,
part-time, or other basis, so long as that individual works a
minimum of 40 hours per month. This includes employees obtained
from a temporary employee agency, leasing concern, or through a
union agreement or co-employed pursuant to a professional
employer organization agreement. SBA will consider the totality
of the circumstances, including criteria used by the IRS for
Federal income tax purposes and those set forth in SBA’s Size
Policy Statement No. 1, in determining whether individuals are
employees of a concern. Volunteers (i.e., individuals who
receive deferred compensation or no compensation, including no
in-kind compensation, for work performed) are not considered
employees. However, if an individual has an ownership interest
in and works for the business a minimum of 40 hours per month,
that owner is considered an employee regardless of whether or
not the individual receives compensation. Reside means to live
in a primary residence at a place for at least 180 days, or as a
currently registered voter, and with the intent to live there
Your business concern must be classified as a small business
defined by the SBA.
Definition of Small Business:
Eligibility Criteria 5:
Small business means the business concern, with its affiliates,
must meet the size standard corresponding to its primary
Certify that when performing a HUBZone contract, at least 35% of
your employees continue to reside in a SBA designated HUBZone. If
your concern is owned by a Indian Tribal Government, 35% of your
employees engaged in performing that contract must reside within a
SBA designated HUBZone. You must "attempt" to maintain the 35%
requirement throughout the life of the contract.
Attempt to Maintain
This means that the business can fall below 35% without withdrawing, and losing its contract but must be making efforts to return to the 35% number, such as posting employment positions, etc.
The SBA can decertify a firm that does not makes efforts to regain its 35% HUBZone employee requirement.