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What is the HUBZone Empowerment Contracting Program?
The HUBZone Empowerment Contracting Program, which is included in the
Small Business Reauthorization Act of 1997, stimulates economic development
and create jobs in urban and rural communities by providing contracting
preferences to small businesses that are located in a HUBZone and that hire
employees who live in a HUBZone.
How does a firm qualify for this program?
In order to qualify for the program, a firm must be located within a
designated HUBZone area. Metropolitan areas can qualify based upon census
tract criteria. Non-metropolitan counties must meet a specific income or
unemployment test. Lands within the boundaries of an Indian reservation also
qualify. Further requirements are that the firm must be a small business
that is owned and controlled by U.S. citizens and that at least 35 percent
of its employees are HUBZone residents.
Specifically what benefits will small businesses receive under this
program?
Small business firms will have the opportunity to negotiate sole source
contracts and participate in restricted competition limited to HUBZone
firms. Also, small businesses located in HUBZone areas will be allowed a 10
percent price evaluation preference in full and open competition.
What type of contracts will be available under the Program?
All types of contracts normally authorized under the Federal Acquisition
Regulation will be available.
How can a firm's eligibility as a HUBZone participant be challenged?
The specific process for challenging a firm's eligibility as a HUBZone
participant is detailed in the SBA's operating regulations. These
regulations allow an interested party to challenge the veracity of a
certification made or information provided to the SBA. The SBA will have
final authority in this regard.
What do I do when I'm ready?
You have done your homework: you have a complete business plan; you know
where you want to operate; you know how much cash you will need; and you
have specific information on employee, vendor and market possibilities. You
now may want someone to look over your plans objectively. Contact the
business department at a local college for another opinion. A SCORE
representative at the Small Business Administration can also review your
work and help with the fine-tuning. Then, when you have made the final
decision to go ahead, it is time to call the bank and get going.
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