The Federal Government needs to contract out a lot of its work – they’re not experts in everything and would rather trust the professionals. In fact, the U.S. Government is the single largest purchaser of services and goods in the world! The government is required to offer some of these opportunities to small business, and a percentage of that is REQUIRED to go to small businesses that are located in Historically Underutilized Business Zones, or HUBZones. They’ve built an entire program around the goal to create opportunities for entrepreneurs located in areas with poor employment and economic growth. This program is designed to ensure that HUBZone businesses win federal contracts and thrive. Once you’re certified as a HUBZone Business you have access to billions of dollars set aside for businesses just like yours! And don’t worry on missing out on some of those big contracts–you can subcontract!
Why would you want a HUBZone Certification?
The federal government is required to spend 23% of its contracting on small businesses. In 2014, 23% of the contracting budget was $271 BILLION dollars. If you qualify for the HUBZone certification, you’re entitled to an additional 3% on top of that. That’s an additional $35 BILLION. The sad thing is that last year only 0.6% of money set aside for HUBZone businesses was awarded, which left about $17 billion of unclaimed federal contracting dollars! This is due in large part to the 2010 census, which reevaluated HUBZones. Since the census, 37% of HUBZone businesses were decertified and there haven’t been enough certified businesses to give the money to, leaving $29 billion in federal contracting dollars for HUBZone businesses untouched last year.
How do you qualify?
It sounds pretty easy- you just have to prove that you’re a small business located in a HUBZone. Unfortunately, it’s not as easy as it sounds. In order to make sure that HUBZone business are receiving this money, the government asks for a lot of information which must be submitted correctly in order to certify you. All of this equals time – time you could have spent elsewhere.
Main HUBZone requirements
- Principal office is located in a HUBZone
- 35% of employees live in a HUBZone
- Your business must be a small business for its primary NAICS code
There are two options to becoming certified.
1. You do it yourself, which is absolutely free! However, when you embark on this journey yourself, you’re pitting yourself against bureaucratic mazes and red tape. Many businesses who try to register themselves without assistance lose out on getting certified, because certification is a job in and of itself (and you already have a full time one!). It’s a process that’s frustrating, extremely easy to mess up, and also takes you away from your primary job.
2. You let professionals (us!) take care of it for you. This is our job, and we have 15 years combined experience of getting small businesses certified. Because we’re experts, we know how to get certifications done quickly and correctly the first time. We’ll go over all of the requirements with you, gather the information necessary to complete the certification process, and then we’ll make sure you’re registered quickly and accurately. We’re also there for you during the entire process so at any time you can contact us.