Understanding the HUBZone Small Business Concern: A Comprehensive Guide

Definition & Meaning

A HUBZone small business concern is a type of small business that meets specific ownership and operational criteria established by the U.S. government. To qualify as a HUBZone small business, the business must be at least 51 percent owned and controlled by U.S. citizens or meet other specific ownership criteria involving Alaska Native Corporations, Indian tribal governments, or community development corporations. These businesses are designed to promote economic development in historically underutilized business zones (HUBZones).

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A small construction company in a rural area that is 100 percent owned by U.S. citizens and operates in a designated HUBZone qualifies for federal contracts reserved for HUBZone businesses.

Example 2: A technology firm that is a subsidiary of an Alaska Native Corporation and meets the ownership requirements may also qualify as a HUBZone small business concern.

Comparison with related terms

Term Definition Key Differences
Small Business Concern A business that meets the SBA's size standards. HUBZone small business concerns must meet additional ownership and location criteria.
8(a) Business Development Program A program for small businesses owned by socially and economically disadvantaged individuals. 8(a) focuses on disadvantaged ownership, while HUBZone focuses on location and ownership by U.S. citizens.

What to do if this term applies to you

If you believe your business qualifies as a HUBZone small business concern, you should:

  • Review the eligibility criteria established by the SBA.
  • Gather necessary documentation to prove ownership and location.
  • Consider using US Legal Forms to access templates for the HUBZone application process.
  • If needed, consult with a legal professional to ensure compliance with all requirements.

Quick facts

  • Ownership Requirement: At least 51% by U.S. citizens.
  • Location: Must be in a designated HUBZone.
  • Size Standard: Must meet SBA's small business size standards.
  • Benefits: Access to federal contracts set aside for HUBZone businesses.

Key takeaways

Frequently asked questions

A HUBZone is a historically underutilized business zone designated by the SBA to encourage economic development.

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