A HUBZone (Historically Underutilized Business Zone) is a geographic area designated by the SBA based on low income, high unemployment, or Native American land status. Businesses located and employing workers in HUBZones receive federal contracting advantages including set-asides and a 10% price preference on full-and-open competitions.

What is the 10% price preference for HUBZone?

In full-and-open competitions, a HUBZone firm can win the contract even if their price is up to 10% higher than the lowest non-HUBZone bidder. For example, if the lowest bid is $1M, a HUBZone firm bidding up to $1.1M can still win. This preference applies to many competitive federal contracts.

How do I check if my business address is in a HUBZone?

The SBA provides a free HUBZone map tool at hubzone.sba.gov where you can enter your business address and employee addresses to check eligibility. Note that HUBZone boundaries change periodically, so re-verify when renewing your certification.

What percentage of employees must live in a HUBZone?

At least 35% of your employees must reside in a HUBZone area at the time of certification and contract award. This is the requirement most businesses struggle to maintain — especially as employees move or the designation boundaries shift.

Historically Underutilized Business Zone

HUBZone Contracts:
10% Price Edge
In Full & Open Competitions

HUBZone certification gives your business a 10% price evaluation preference in full-and-open federal competitions — plus exclusive set-aside contracts. GovScout Pro finds HUBZone opportunities in your NAICS codes every single day.

Get HUBZone Alerts → Check Requirements

10%

Price Preference

Federal Spending Goal

35%

Min. Employee Residency

What Is HUBZone?

Location-Based Contracting Advantage

The SBA's HUBZone (Historically Underutilized Business Zone) program incentivizes federal contracting with businesses located in economically distressed communities. If your business is in a qualified zone and 35% of your employees live in a HUBZone, you get two major advantages:

10%

Price Preference

In full-and-open competitions, you can be priced up to 10% higher than the lowest non-HUBZone bidder and still win. Real money on real contracts.

Set-Asides

Exclusive Contracts

Agencies set aside contracts exclusively for HUBZone firms when two or more HUBZone businesses can compete at a fair market price — no non-HUBZone firms allowed.

Eligibility

The 4 Requirements for HUBZone

Every requirement must be met at certification and maintained throughout the contract period. Failing any one of these gets your certification revoked.

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LOCATION

Principal Office in HUBZone

Your business's principal office — where the greatest number of employees work — must be located in a certified HUBZone. A virtual office or mailbox address does not qualify.

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EMPLOYEES

35% Employee Residency

At least 35% of your total employees must live in a HUBZone. This is the hardest requirement to maintain as your workforce grows or employees relocate.

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OWNERSHIP

51% U.S. Citizen Ownership

At least 51% of the business must be unconditionally owned by U.S. citizens, a Community Development Corporation, agricultural cooperative, or Indian tribal government.

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SIZE

Small Business Status

Must qualify as a small business under SBA size standards for the primary NAICS code used in certification. Size is recertified regularly throughout the program.

How GovScout Pro Helps

Find HUBZone Contracts Daily

Both HUBZone set-asides and price-preference opportunities on SAM.gov — filtered by your NAICS codes and delivered before deadlines hit.

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SET-ASIDES

HUBZone Set-Aside Filter

GovScout Pro scans SAM.gov for contracts set aside specifically for HUBZone firms in your NAICS codes. Get the list every morning.

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PRICE PREF

Full-and-Open Opportunities

Your 10% price preference applies to many full-and-open competitions too. GovScout Pro flags these so you can calculate whether your pricing wins with the preference applied.

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Marcus Hale Contract AI

Paste a solicitation link and ask Marcus to summarize requirements, identify incumbent contractors, or flag past performance needs — in plain English.

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ALERTS

Email + Telegram Daily Alerts

Opportunities land in your inbox or Telegram each morning. No SAM.gov login needed. Deadlines included. Reply to engage GovScout Pro's AI directly.

FAQ

HUBZone Questions Answered

How do I know if my address is in a HUBZone?▼

The SBA provides a free HUBZone Map tool at hubzone.sba.gov. Enter your principal office address and each employee's home address. If your office and 35% of employees qualify, you can apply. Important: HUBZone maps update annually, so a location that qualifies today may not qualify at renewal.

Can a HUBZone firm also hold other certifications?▼

Yes. HUBZone stacks with SDVOSB, WOSB, and 8(a) certifications. Holding multiple certifications opens more set-aside categories and can make you very attractive as a teaming partner for larger firms pursuing prime contracts.

What happens if my employees move out of a HUBZone?▼

You must maintain 35% residency throughout the life of your certification and any active contracts. If you fall below that threshold, you're required to notify the SBA. Violations can result in decertification and potentially bars from federal contracting. Annual recertification requires confirming your employee residency numbers.

How long does HUBZone certification take?▼

The SBA targets 60 days for HUBZone certification decisions. Processing times vary. The application requires documentation of your principal office lease or ownership, employee W-2s or payroll records showing home addresses, and organizational documents. Incomplete applications extend processing time significantly.

Does the 10% preference apply to all federal contracts?▼

The 10% price preference applies to full-and-open competitions — contracts not set aside for small businesses. It does not apply to other set-aside competitions (SDVOSB, 8(a), etc.) or to task orders under existing IDIQ contracts unless the base contract specifies it. The preference is substantial on large unrestricted competitions.

HUBZone Contracts:10% Price EdgeIn Full & Open Competitions