✅ What is a HUB Zone?
A HUB Zone (Historically Underutilized Business Zone) is a geographic area designated by the U.S. Small Business Administration (SBA) to help stimulate economic development and job growth in underserved communities.
A HUBZone-certified business is a business located in one of these areas and meeting specific SBA requirements.
✅ What are HUB Zone “properties”?
People sometimes say “HUB Zone properties” to refer to:
- Commercial or residential properties located inside a HUB Zone
If your principal office (main office where most employees work) is in a HUBZone, you may qualify.
- Properties purchased or leased by businesses wanting HUBZone certification
Some companies deliberately locate in HUB Zones to get federal contracting advantages.
✅ What benefits does HUB Zone certification provide?
- Federal Contracting Advantages
The BIGGEST benefit.
10% price evaluation preference in federal full-and-open competitions.
Set-aside contracts can be awarded only to HUB Zone-certified firms.
Sole-source contracts (when competition doesn’t exist).
Federal agencies are required to award 3% of ALL prime contract dollars to HUB Zone businesses — but they often fall short, so demand is high.
- Increased Visibility & Priority with Government Buyers
Your business appears in SBA databases used by contracting officers.
HUB Zone can help you stand out among competitors.
- Competitive Edge in Teaming / Joint Ventures
Large contractors often seek HUB Zone firms to meet federal subcontracting requirements.
✅ What types of businesses gain the MOST from HUBZone?
Businesses that sell to the government or want to:
These industries get strong HUB Zone benefits:
- Construction & Contractors
General contracting
Electrical, HVAC, plumbing
Facility maintenance
Engineering firms
These get tons of HUB Zone set-aside contracts.
- IT & Technology Firms
Software development
Cybersecurity
Government IT services
Cloud and data management
Tech companies often relocate to HUB Zones to win long-term government contracts.
- Professional Services
Consulting
Accounting
HR & staffing companies
Marketing & communications services
Service-based companies can operate with small offices → easy to qualify.
- Manufacturing & Fabrication
Manufacturers receive sizeable federal supply contracts.
- Logistics & Supply Companies
Especially useful if you sell:
industrial supplies
medical/dental supplies
safety equipment
office supplies
✅ Who benefits less from HUBZone?
Businesses that rarely sell to government:
Restaurants
Retail-only stores
Local service businesses (salons, spas, gyms)
Please follow our blog for potential HUB Zone opportunities.