Legislation Proposed to Grow HUBZone Businesses

March 10, 2017

GovCon Voices: Let’s Amend The HUBZone 35% Requirement

Source: SmallGovCon, Michael Anderson, March 7, 2017

The HUBZone contracting program, while well-intended to provide economic and employment opportunities in otherwise low income, high unemployment areas, must nonetheless connect HUBZone firms with government contracts, the overwhelming majority of which are not located within a HUBZone.

If HUBZone firms are to experience growth, they will need to utilize the local labor force in the area where the contract is to be performed, in addition to utilizing the labor force residing in their HUBZone to perform indirect labor functions.  As a company’s direct labor force grows, their indirect labor will also grow, producing more employment opportunities within the HUBZone, thereby fulfilling an intent of the program.

The HUBZone Empowerment Act became law through the Small Business Reauthorization Act of 1997.  The Small Business Administration (SBA) regulates and implements the program, determines the businesses eligible to receive HUBZone contracts, maintains a database of qualified HUBZone businesses, and adjudicates protests of eligibility to receive HUBZone contracts.  HUBZone contracting encourages small businesses to locate in and hire employees from economically disadvantaged areas of the United States.  HUBZone entities may receive competitive advantages in winning federal contracts. READ MORE….

Contact your nearest PTAC to learn about the HUBZone contracting program and government contracting.


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For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.