In a historic milestone for the HUBZone program, small businesses in this category were granted an astounding $16.3 billion in federal contract awards. This remarkable achievement represents the highest amount ever awarded to HUBZone small businesses. Although falling short of the 3% statutory goal, this accomplishment signifies significant progress and opens the door to even more excellent opportunities for the growth and success of HUBZone businesses.
Understanding HUBZone:
The Historically Underutilized Business Zones (HUBZone) program was established by the United States Small Business Administration (SBA) to stimulate economic development and create job opportunities in historically underprivileged areas.
Eligible businesses in designated HUBZones can access various advantages, including competitive bidding for federal contracts, preferential treatment in subcontracting opportunities, and assistance through mentorship and training programs. Find out if your firm is located in a HUBZone here.
Small Business Scorecard News
Administered by the U.S. Small Business Administration, the HUBZone program fosters economic development in designated HUBZones by mandating that the federal government allocates 3% of all federal prime contracting dollars to HUBZone-certified small businesses annually.
Statistics show that in 2020 the prime contracting achievement was 2.44% and 2.53% for HUBZone-certified small businesses. However, in 2022 HUBZone increased spending by $800M to expand small business participation in Defense Department contracting, the most significant investment to date. The HUBZone program remains valuable and beneficial, despite not reaching its 3% goal for federal prime contracting dollars. There are several reasons why the program is still considered advantageous for small businesses.
Why HUBZone Certification Can Supercharge Your Small Business Success:
- Access to Exclusive Contracts: HUBZone certification opens doors to a unique set of federal contracts reserved solely for certified businesses, increasing your chances of winning lucrative government projects.
- Competitive Edge: With fewer HUBZone-certified businesses competing for specific contracts, you gain a distinct advantage over non-certified competitors, making your company more attractive to government agencies and prime contractors.
- Priority in Set-Asides: HUBZone-certified firms often receive priority consideration in government contract set-asides, boosting opportunities to secure contracts designated for small businesses from historically underutilized areas.
- Location Advantages: If your business is in a distressed location, HUBZone certification helps stimulate local economic growth and job creation, positively impacting the community.
- Potential for Subcontracting: HUBZone certification can enhance your chances of becoming a subcontractor for prime contractors pursuing federal projects, enabling you to access larger contracts and expand your business’s reach.
- Networking Opportunities: As a certified HUBZone business, you gain access to exclusive networking events, trade shows, and government-sponsored seminars, fostering connections with potential partners and clients.
- Assistance Programs: HUBZone certification makes your business eligible for various government support programs, including business counseling, access to capital, and technical assistance, which can fuel your company’s growth and competitiveness.
- Diversification: By pursuing HUBZone certification, you can diversify your client base and revenue streams, reducing dependency on commercial clients and exploring additional opportunities in the government sector.
Remember, while HUBZone certification provides numerous advantages, evaluating your business’s eligibility and potential benefits is essential.
Book a chat to learn more about how HUBZone certification can benefit your business.
