Historically Underutilized Business Zones (HUB Zones)

The Historically Underutilized Business Zones (HUB Zone) program was enacted into law as part of the Small Business Reauthorization Act of 1997 and falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUB Zones" – by helping small businesses in urban and rural communities gain preferential access to federal procurement opportunities.

Benefits of the HUB Zone Program

The program’s benefits for HUB Zone-certified companies include:

  • Competitive and sole source contracting
  • 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.

The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUB Zone-certified small businesses.

Eligibility for the HUB Zone

To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria:

  • It must be a small business by SBA standards
  • It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe
  • Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act
  • At least 35% of its employees must reside in a HUB Zone.

North Carolina's Southeast has 6 counties designated as HUB Zones: Bladen, Columbus, Montgomery, Richmond, Robeson, and Scotland.

For more information about HUB Zone certified areas, please click the map below: