Thousands of small businesses across the U.S. in economically disadvantaged areas will now benefit from the launch of a new HUBZone map that will allow them to compete for billions of dollars in federal contracts reserved for businesses certified in the Historically Underutilized Business Zone (HUBZone) program. The goal is to create jobs and improve the economy in their communities.

With the creation of a new map, the SBA has expanded its HUBZones, meaning more businesses can apply for HUBZone certification. The changes will go into effect on July 1, 2023, reflecting updates from the 2020 U.S. Census.

Isabel Casillas Guzmán, SBA administrator, said:

The HUBZone Program is an essential component of President Biden’s commitment to expanding federal contracting opportunities for small businesses across the country.

Get to know: HUBZones

Compiled from population and economic data from the Census Bureau and other federal agencies, using a formula set by Congress, the map highlights growth opportunities for small businesses in more than 20,000 HUBZone areas across the United States and territories, including 3,732 newly-qualified communities.

Also under the new map, many areas currently designated as HUBZones will no longer qualify to participate in the program because they have overcome their disadvantaged status through increased employment, rising median income, or other signs of positive economic development. However, the expiration of their status will be extended until July 1, 2026, giving businesses and communities additional time to transition.

#SBDCDay is March 15! #DidYouKnow? There are 900+ Small Business Development Centers across America that provide business counseling, training, & other services to help entrepreneurs start, grow, and expand their businesses. Find a @ASBDC center near you: https://t.co/oG9al18RwZ pic.twitter.com/ZoYYWhfPcn

— SBA (@SBAgov) March 9, 2023

HUBZone-certified businesses with headquarters in areas that have been in "Redesignated" status since 2018, and whose communities have had time to transition out of the program, will officially lose their HUBZone eligibility after July 1 of 2023, unless they relocate their main offices within a qualified area.

“By channeling a record $14 billion in federal purchases to HUBZone-certified small firms last year, the Biden-Harris Administration gave a critical financial boost to hundreds of entrepreneurs in economically disadvantaged rural and urban areas,” added Casillas Guzmán.

What to know

The SBA advises that before any upcoming changes, HUBZone-certified firms must verify that they will meet 35% of the residency and principal office requirements for HUBZone employees on their annual recertification after July 1, 2023.

Eligible firms at the time of bidding for a HUBZone contract are generally considered HUBZone businesses for the term of that contract, which means that existing HUBZone contracts will not be affected by the map update.

“For small businesses in new HUBZone areas, SBA’s certification provides a gateway to billions of dollars in federal contracting opportunities, contributing to the economic growth and strengthening of underserved communities while also ensuring that employment opportunities benefit the people living in communities that most need positive economic impact,” said Lori Gillen, director of the Office of the HUBZone Program.  

To see a map of the current HUBZones, click here.