The SBA HUBZone Office has recently put out some new rules regarding shared office spaces. While these new rules may seem stricter, it is actually good that they have put the policy in writing so that it is clear on what will qualify for your principal office and what will not. For companies looking to lease a new space or apply to the HUBZone program, please follow the guidelines below and share this with your landlord so that your lease can include all required information. This new policy should be posted to the SBA’s website soon.
Every entity that wants to do business with the Federal Government, must be registered in SAM. A complete and active SAM registration is needed in order to get paid by the Federal Government and to apply to any of the Federal Government Contracting Programs run by SBA and VA.
By now you probably know that at least 35% of your total employees must reside in a HUBZone. By total employees, we mean every single employee that works more than 40 hours a month, no matter where they work. This means employees that work at your principal office, other office locations, jobsites, and remotely from home, all count towards that 35% that you must meet.
If you would like a Hubzone Program eligibility analysis, please take our online hubzone eligibility questionnaire.
You are also welcome to review the basic eligibility requirements below. Generally, to be approved into the Hubzone Program you must meet these basic eligibility requirements:
Eligibility Criteria 1:
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 designated Hubzone.
There are 6,785 active SBA HUBZone Certified firms as of April 2019. Below is an info graphic showing the location by state and number of active SBA Hubzone Certified firms. The source of this information is the SBA Dynamic Small Business database.
The office of the Hubzone Program uses a three-level review process for all Hubzone applications and supporting documentation to ensure that it only admits eligible firms into the program. Each level of review evaluates whether a firm should be certified or declined entry into the Hubzone program. First level analysts review supporting documents including owners’ proof of citizenship, principal office leases, payroll, employees’ driver’s licenses, and utility bills. The Hubzone program director or deputy director makes the final determination to certify or decline the applicant firm. See below for a summary of the steps in the Hubzone certification process.
Pick up the phone. Speak to the actual person who will be preparing your application.
You should be able to call and speak directly to the individual who will be responsible for preparing your application. At Cloveer, you can call and speak to the employee who will be responsible for preparing your application. They will answer any of your questions and let you know whether or not you are eligible to become certified into one of these programs at no cost.
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The most common misunderstanding that many of our clients come to us with is not knowing which employees count towards the 35% Hubzone residency requirement and how the principal office is determined. Many think that as long as 35% of the employees in their principal office reside in a Hubzone, they will qualify. This is not true.