HUBZone Program – Application Screening

HUBZone Program – Application Screening
[INSERT DATE] This is about federal contract markets and participating in those markets as a HUBZone certified firm. Welcome to “HUBZone Training” -- a small business guide outlining program eligibility and certification requirements. -- HUBZone Program --

Introduction Points of Contact:
Arthur E. Collins, Jr., Deputy Director, Office of HUBZone Program, Takeisha Dubose-Hodge, Team Leader, Office of HUBZone Program, (202) Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Project - Introduction
This initiative seeks to increase the likelihood that firms applying for certification as ‘qualified HUBZone small business concerns,’ are substantially ‘procurement-ready’ at the time that they submit applications. The intent is to improve the quality of applications submitted so that they can be correctly and quickly processed. Improvement in quality can be achieved by early engagement of applicants and the Agency’s client-facing resources: Office of Field Operations and its District Offices, District Office Resource Partners (e.g. Procurement Technical Assistance Centers, Small Business Development Centers, economic development authorities, chambers of commerce, etc.), and, Office of Government Contracting. Early engagement of applicants with contracting resources will produce firms that are truly procurement-ready. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Project – Design This initiative involves the following components.
A local resource (e.g., PTAC, SBDC, District Office, etc.) that provides a local counselor who, Receives training directly from a designated Office of HUBZone Program Point of Contact. Consults with firms to assess readiness for Federal contracting, and counsels them as appropriate. Consults with firms to assess compliance HUBZone eligibility requirements for certification, and the likelihood of their remaining in compliance thereafter, and counsels them, as appropriate. Assists firms in submitting on-line HUBZone applications, and in screening required supporting documentation. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Project – Design, cont’d…
The Office of HUBZone Program that designates a Point of Contact for the initiative, who, Provides training to local counselors in screening applications and supporting documents. Provides technical, policy, and regulatory support throughout the application process. Provides a streamlined application process. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Project Outcomes Significantly reduced application processing times, rates of withdrawal, and rates of decline. Greater program success (i.e., award of HUBZone contracts) based on procurement readiness. Greater long-term program compliance because of certified firms’ better Program understanding. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Project - Participants
To date, the following organizations are collaborating with the Office of HUBZone Program on this initiative: Puerto Rico District Office, Maine District Office and the Maine PTAC, New Hampshire District Office, Columbus District Office and the Ohio PTAC, Dallas/Fort Worth District Office and the Texarkana/Northeast SBDC, West Virginia District Office and the West Virginia SBDC, Lost Angeles District Office and the SBDC – El Camino College Procurement Center Representative (Office of Government Contracting) and Alabama PTAC. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Foundational Principles
Program integrity is unequivocally paramount in processing applications for certification of firms as ‘qualified HUBZone small business concerns.’ In processing a HUBZone application, at all levels, we seek, and must find, absolute consistency among: The business reality (e.g., an entity is small (based on its actual average revenues or number of employees, as appropriate); its principal office is physically located in a qualified HUBZone; at least 35% of its employees physically reside in qualified HUBZones; and, at least 51% of its owners are U.S. citizens.) The virtual representation of the business reality in a submitted on-line HUBZone Application. The analog representation of the business reality in corroborative documents submitted in support of an on-line HUBZone Application. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Screening Tool - Design
Excel Workbook (name Workbook as ‘[INSERT FIRM NAME] HUBZone APPLICATION’) Four Worksheets (select the appropriate tab) Corporation Limited Liability Company Proprietorship Partnership Complete all questions to spreadsheet to and (include in subject line ‘ SCREENING TOOL [INSERT FIRM NAME] HUBZone APPLICATION’) Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Screening Tool – Design, Columns, cont’d…
‘Question Number’ (internal control) ‘Applicability’ (based on organizational form, or applicable to ‘All’) ‘Question’ (in general, is a particular form of evidence ‘Present and Legible,’ and is it ‘Sufficient.’) ‘Response’ (select from menu, conditional color coding based on selection) ‘Yes,’ ‘No,’ or ‘Not Applicable’ Instructions (basic guidance to screener) Screener Notes (record specific observations about documents reviewed (presence, legibility, sufficiency, etc.), screener's document requests, corrective actions to be taken by the applicant, etc.) Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Key HUBZone Concept, Eligibility Requirements
To be certified as a ‘qualified HUBZone small business concern,’ a firm must: Be a ‘small business,’ by reference to SBA size standards. Be at least 51% owned and controlled by U.S. citizens who are ‘natural persons,’ or a community development corporation, agricultural cooperative, or Indian tribe. Have its ‘principal office,’ located within a HUBZone. Have at least 35% of its employees reside in a HUBZone. To be eligible for the HUBZone program a business must meet the following criteria: It must be a small business by SBA standards; It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and, At least 35% of its employees must reside in a HUBZone. There are no provisions for firm falling in and out of compliance. The only exception is when a firm is performing work under a HZ contract, the statute allows the firm to fall below the 35% employee HUBZone residency so long as they are making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. This exception does not apply to subcontracts or other fed contracts (8a, SB set-asides, etc.) There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part For example, 13 CFR (a) (3) explains that at the time of the application, the tribally owned firm can choose to: (i) Maintain a principal office located in a HUBZone and ensure that at least 35% of its employees reside in a HUBZone as provided in paragraph (b)(4) of this section; or (ii) Certify that when performing a HUBZone contract, at least 35% of its employees engaged in performing that contract will reside within any Indian reservation governed by one or more of the Indian Tribal Government owners, or reside within any HUBZone adjoining such Indian reservation. A HUBZone and Indian reservation are adjoining when the two areas are next to and in contact with each other; and (iii) The concern will “attempt to maintain” (definition of attempt to maintain is at ) that applicable employment percentage stated above during the performance of any HUBZone contract it receives. Attempt to maintain definition: means making substantive and documented efforts such as written offers of employment, published advertisements seeking employees, and attendance at job fairs. Remember that attempt to maintain is a “safe harbor” that applies only to the 35% employee HZ residency requirement and only when the HZ SBC is the prime that is performing on HZ contract (not a subcontractor). But the HZ SBC cannot bid on new HZ solicitations until it comes back to full compliance (this is the carrot at the end of the stick. . . ) -- HUBZone Program --

Key HUBZone Concept, Standing Policy, ‘Electronic Verification Date’
Is critical. It is the date that the applicant asserts to SBA that it is in compliance with HUBZone Program eligibility requirements. Much of SBA’s analysis of an application relates to that date. However, to receive HUBZone Program benefits – contract preferences - the firm be in compliance with program eligibility requirements at that time. Therefore, if, after it electronically verifies its application, an applicant finds that it is not in compliance with eligibility requirements, it should immediately withdraw its application. SBA cannot certify a firm that is not compliant with eligibility requirements at the time SBA determines eligibility. Therefore, even if an applicant was in compliance on the date of electronic verification, if SBA finds that it is no longer in compliance, it will decline the application. Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Key HUBZone Definition, 13 C.F.R. 126.103, ‘Employees’
…means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours per month. This includes employees obtained from a temporary employee agency, leasing concern, or through a union agreement or co-employed pursuant to a professional employer organization agreement. SBA will consider the totality of the circumstances, including criteria used by the IRS for Federal income tax purposes and those set forth in SBA's Size Policy Statement No. 1, in determining whether individuals are employees of a concern. Volunteers (i.e., individuals who receive deferred compensation or no compensation, including no in-kind compensation, for work performed) are not considered employees. However, if an individual has an ownership interest in and works for the HUBZone SBC a minimum of 40 hours per month, that owner is considered an employee regardless of whether or not the individual receives compensation. Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Key HUBZone Definition, 13 C.F.R 126.103 , ‘Principal Office’
…means the location where the greatest number of the concern's employees at any one location perform their work. However, for those concerns whose “primary industry” (see 13 CFR ) is service or construction (see 13 CFR ), the determination of principal office excludes the concern's employees who perform the majority of their work at job-site locations to fulfill specific contract obligations. Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Key HUBZone Concept, ‘Payroll’
Payroll records are used to determine several things, including whether specific individuals are ‘employees,’ as defined for the HUBZone Program; whether the majority of the employees work from the HUBZone ‘principal office’ as defined for the HUBZone Program; and whether at least 35% of firm’s employees reside in a HUBZone. The date that the firm electronically verifies its application (‘electronic verification date’) is critical. This is the date that the applicant asserts to SBA that it is in compliance with HUBZone Program eligibility requirements. For this reason, the payroll records must include the date of electronic verification. Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Key HUBZone Concept, ‘Payroll,’ cont’d…
SBA must review sufficient payroll records to allow it to conclude that an individual does, or does not, work for the firm the required minimum monthly hours to determine whether the specific individual meets the HUBZone Program definition of ‘employee.’ So, in addition to submitting the payroll for the period that includes the electronic verification date, the firm must submit sufficient immediately preceding payrolls to enable this decision. Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

Applicant and Screener Identification
HUBZone Application/Certification Number: Applicant firm Name: HUBZone Electronic Verification Date: Screening Entity: Name of Screener: Date of Screening: Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, Corporation
Is a Stockholders' Ledger or Stockholders' Register present and legible? This question is relevant if the Applicant is a Corporation. If the Applicant is not a Corporation, answer 'Not Applicable.' If the Applicant is a Corporation, answer 'Yes' or 'No.' X ' If you answer 'No,' please obtain at least at least one (1) of the following from the Applicant: Stockholders' Ledger or Stockholders' Register (these are best evidence); or, if unavailable (a) Affidavit of Stock Issuance (on Applicant letterhead) (acceptable evidence), (b) Corporate Resolution (acceptable evidence), (c) Buy Sell Agreement (acceptable evidence), or (d) Stock Purchase Agreement from the Applicant (acceptable evidence). If none are available, obtain an explanatory note from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, it must enable SBA to determine the percentage of the entity that each stockholder owns. (It must document 100% of stock issued and outstanding.) This information is used in calculating the percentage of the firm that is owned by U.S. citizens. It should reconcile with copies of issued and outstanding stock. If it is not possible to deduce the percentage of the entity that each stockholder own from the document, or if it does not reconcile with copies of sock certificates issued and outstanding, the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant is a Corporation. If the Applicant is not a Corporation, answer 'Not Applicable.' If the Applicant is a Corporation, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Are copies, front and back, of all Stock Certificates Issued and Outstanding present and legible? This question is relevant if the Applicant is a Corporation. If the Applicant is not a Corporation, answer 'Not Applicable.' If the Applicant is a Corporation, answer 'Yes' or 'No.' X ' If you answer 'No,' please obtain at least at least one (1) of the following from the Applicant: (a) Stock Certificates (these are best evidence), (b) Affidavit of Stock Issuance (on Applicant letterhead) (acceptable evidence), (c) Corporate Resolution (acceptable evidence), (d) Buy Sell Agreement (acceptable evidence), or (e) Stock Purchase Agreement from the Applicant (acceptable evidence). If none are available, obtain an explanatory note from the Applicant. This explanation should be placed in the file. Are they sufficient? To be sufficient, copies of Stock Certificates Issued and Outstanding. represent and legible 100% of entity ownership, must enable SBA reconcile them with the Stockholder Ledger of Register to confirm 100% of firm ownership, and the percentage of the entity that each stockholder owns. This information is used in calculating the percentage of the firm that is owned by U.S. citizens. If it is not possible reconcile Stock Certificates Issued and Outstanding with the Stockholder Register, Applicant should provide a signed and dated explanatory statement. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Limited Liability Company
Ownership and Control, 51% U.S. Citizens, Limited Liability Company Limited Liability Company Are Articles of Organization or Certificate of Organization present and legible? This question is relevant if the Applicant is a Limited Liability Company. If the Applicant is not a Limited Liability Company, answer 'Not Applicable.' If the Applicant is a Limited Liability Company, answer 'Yes' or 'No.' If you answer 'No,' please obtain a legible copy of Articles of Organization or Certificate of Organization from the Applicant. If it is unavailable, obtain an explanatory note from the Applicant. This explanation should be placed in the file. Are they (is it) sufficient? To be sufficient, Articles of Organization or Certificate of Organization must enable SBA to determine the percentage of the entity that each member owns. (It must document 100% of members ownership.) This information is used in calculating the percentage of the firm that is owned by U.S. citizens. If it is not possible to deduce the percentage of the entity that each member owns from the document, the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant is a Limited Liability Company. If the Applicant is not a Limited Liability Company, answer 'Not Applicable.' If the Applicant is a Limited Liability Company, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Is an Operating Agreement with any amendments present and legible? This question is relevant if the Applicant is a Limited Liability Company. If the Applicant is not a Limited Liability Company, answer 'Not Applicable.' If the Applicant is a Limited Liability Company, answer 'Yes' or 'No.' If you answer 'No,' please obtain a legible copy of the Operating Agreement from the Applicant. Is it sufficient? To be sufficient, an operating agreement with any amendments, must enable SBA to determine the percentage of the entity that each member owns. (It must document 100% of members ownership.) This information is used in calculating the percentage of the firm that is owned by U.S. citizens. If it is not possible to deduce the percentage of the entity that each member owns from the document, the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant is a Limited Liability Company. If the Applicant is not a Limited Liability Company, answer 'Not Applicable.' If the Applicant is a Limited Company, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, Proprietorship
Is an IRS 1040-Schedule C present and legible? This question is relevant if the Applicant is a Proprietorship. If the Applicant is not a Proprietorship, answer 'Not Applicable.' If the Applicant is a Proprietorship, answer 'Yes' or 'No.' If you answer 'No,' please obtain a legible copy of the IRS Form 1040-Schedule C from the Applicant. If it is unavailable, obtain an explanatory note from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, the Schedule C must be current (most recent filing) and enable SBA to determine ownership of the firm. (It must document 100% of ownership.) This information is used in calculating the percentage of the firm that is owned by U.S. citizens. If a Schedule C is not available (e.g., firm is too new for a Schedule C to have been filed, etc.), the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant is a Proprietorship. If the Applicant is not a Proprietorship, answer 'Not Applicable.' If the Applicant is a Proprietorship, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, Partnership
Is a Partnership Agreement and Amendments (if any) present and legible? This question is relevant if the Applicant is a Partnership. If the Applicant is not a Partnership, answer 'Not Applicable.' If the Applicant is a Partnership, answer 'Yes' or 'No.' If you answer 'No,' please obtain a legible copy of the Partnership Agreement and Amendments from the Applicant. If it is unavailable, obtain an explanatory note from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, the Partnership Agreement must be current and enable SBA to determine ownership of the firm. (It must document 100% of ownership.) This information is used in calculating the percentage of the firm that is owned by U.S. citizens. If a Partnership Agreement, is not available, the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant is a Partnership. If the Applicant is not a Partnership, answer 'Not Applicable.' If the Applicant is a Partnership, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, All, Fictitious Name
Does the firm operate under a fictitious, assumed or trade name (i.e., a name different from its own)? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Is Doing Business As Certificate present and legible? If the Applicant does not operate under a fictitious, assumed, or trade name, answer 'Not Applicable.' If the Applicant operates under a fictitious, assumed, or trade name, answer 'Yes,' or 'No.' If you answer 'No,' please obtain a Doing Business As Certificate from the Applicant. If Doing Business As Certificate is not available, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, the Doing Business Certificate must be consistent with the documents evidencing ownership (above) and must be current (in force). If a Doing Business Certificate is required, but unavailable, the Applicant should provide a signed and dated explanatory statement. This question is relevant if the Applicant operates under a fictitious, assumed, or trade name. If the Applicant does not operate under a fictitious, assumed, or trade name, answer 'Not Applicable.' If the Applicant operate under a fictitious, assumed, or trade name, answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U. S
Ownership and Control, 51% U.S. Citizens, All, Evidence of Owner Citizenship All For each individual identified as an owner, and asserted to be a U.S. citizen, is one of the following present and legible: Birth Certificate, or Current Valid U.S. Passport (or Passport Card), or Certificate of Naturalization, or Certificate of Citizenship. This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. If you answer "No,' obtain evidence of U.S. citizenship for each individual asserted to be a U.S. citizen, from the Applicant. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, for each individual, asserted to be a U.S. citizen the effective date of the document evidencing citizenship (usually date of issue) must be on or before the electronic verification date of the HUBZone Application. And, if the document evidencing citizenship is a passport or passport card, is it still in effect (i.e., unexpired). This question is relevant to all organizational forms. Answer 'Yes' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Does search of the Internet corroborate the Applicant's submission regarding ownership and control by U.S. citizens? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Suggested Internet research approaches include common search engines (e.g., Google, etc.), System for Award Management (SAM), Dynamic Small Business Search Page (DSBS), commercial data bases (e.g., D&B, Experian, etc.). Any results that are inconsistent with the application should be noted to the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, All, Affiliation with Other Entities All Does the application contain information that indicates that Applicant is, or may be affiliated with another entity? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Is sufficient information (name, address, kind of business, explanation of relationship, etc.) regarding any other affiliated businesses(s) present and legible? This question is relevant to all organizational forms. If there no evidence that the Applicant is, or may be, affiliated with another entity, answer 'Not Applicable.' If there evidence that the Applicant is, or may be, affiliated with another entity, answer 'Yes,' or 'No,' based on the description of sufficiency to the left. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Does search of the Internet corroborate the Applicant's submission regarding affiliation? This question is relevant to all organizational forms. If the application does not include information about affiliation, answer 'Not Applicable,' If the application includes information about affiliation, Answer 'Yes,' or 'No,' as appropriate. Suggested Internet research approaches include common search engines (e.g., Google, etc.), System for Award Management (SAM), Dynamic Small Business Search Page (DSBS), commercial data bases (e.g., D&B, Experian, etc.). Any results that are inconsistent with the application should be noted to the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, All, Franchise Relationship
Is the Applicant is a franchisee? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Is a copy of the Franchise Agreement present and legible? This question is relevant to all organizational forms. If there is no evidence of a franchise relationship, answer 'Not Applicable.' If there evidence of a franchise relationship, answer 'Yes,' or 'No.' If you answer 'No,' please obtain a legible copy of the franchise agreement. If a legible copy of the franchise agreement is not available, obtain an explanation from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, the Franchise Agreement must be fully executed. This question is relevant to all organizational forms. If there is no evidence of a franchise relationship, answer 'Not Applicable.' If there evidence of a franchise relationship, answer 'Yes,' or 'No.' If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, All, Employee Stock Option Plan Ownership All Is the Applicant owned by an Employee Stock Ownership Plan (ESOP)? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Is a copy of the Employee Stock Option Plan present and legible? This question is relevant to all organizational forms. If there is no evidence that the firm is owned by an ESOP, answer 'Not applicable.' If there evidence that the firm is owned by an ESOP, answer 'Yes,' or 'No.' If you answer 'No,' please obtain a copy of the ESOP. If a copy of the ESOP is not available, obtain an explanation from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, the Employee Stock Option Plan must enable SBA to determine who owns the firm. This question is relevant to all organizational forms. If there is no evidence that the firm is an ESOP, answer 'Not applicable.' If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. For each individual identified as an owner under the Employee Stock Option Plan, and asserted to be a U.S. citizen, is one of the following present and legible: Birth Certificate, or Current Valid U.S. Passport (or Passport Card), or Certificate of Naturalization, or Certificate of Citizenship. This question is relevant to all organizational forms. If there is no evidence that the firm is an ESOP, answer 'Not applicable.' If there evidence that the firm is owned by an ESOP, answer 'Yes,' or 'No.' If you answer "No,' obtain evidence of U.S. citizenship for each individual asserted to be a U.S. citizen, from the Applicant. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, for each individual, asserted to be a U.S. citizen the effective date of the document evidencing citizenship (usually date of issue) must be on or before the electronic verification date of the HUBZone Application. And, if the document evidencing citizenship is a passport or passport card, is it still in effect (i.e., unexpired). This question is relevant to all organizational forms. If there is no evidence that the firm is an ESOP, answer 'Not applicable.' If there evidence that the firm is owned by an ESOP, answer 'Yes,' or 'No.' If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Ownership and Control, 51% U.S. Citizens, All, Trust Ownership
Is the Applicant owned by a Trust? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Is a copy of the Trust Agreement present and legible? This question is relevant to all organizational forms. If there is no evidence that the firm is owned by an Trust, answer 'Not applicable.' If there evidence that the firm is owned by an Trust, answer 'Yes,' or 'No.' If you answer 'No,' please obtain a legible copy of the Trust Agreement. If a legible copy of the Trust Agreement is not available, obtain an explanation from the Applicant. This explanation should be placed in the file. Is it sufficient? To be sufficient, the Trust Agreement must enable SBA to determine who the trustees and beneficiaries of the trust are. This question is relevant to all organizational forms. If there is no evidence that the firm is owned by a Trust, answer 'Not applicable.' If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. For each individual identified as a trustee or beneficiary under the Trust Agreement, and asserted to be a U.S. citizen, is one of the following present and legible: Birth Certificate, or Current Valid U.S. Passport (or Passport Card), or Certificate of Naturalization, or Certificate of Citizenship. This question is relevant to all organizational forms. If there is no evidence that the firm is owned by a Trust, answer 'Not applicable.' If there evidence that the firm is owned by a Trust, answer 'Yes,' or 'No.' If you answer "No,' obtain evidence of U.S. citizenship for each individual asserted to be a U.S. citizen, from the Applicant. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, for each individual, asserted to be a U.S. citizen the effective date of the document evidencing citizenship (usually date of issue) must be on or before the electronic verification date of the HUBZone Application. And, if the document evidencing citizenship is a passport or passport card, is it still in effect (i.e., unexpired). This question is relevant to all organizational forms. If there is no evidence that the firm is owned by a Trust, answer 'Not applicable.' If there evidence that the firm is owned by a Trust, answer 'Yes,' or 'No.' If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Principal Office, All, Evidence of Occupancy
For the asserted 'principal office,' is evidence present and legible that the address is in a HUBZone (i.e., legibly annotated HUBZone map)? This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' obtain legible evidence that the asserted principal office is located in a HUBZone. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, documentation must be a HUBZone Program system-generated map, corresponding to the asserted 'principal office location,' or, if HUBZone Program system-generated map is not available (i.e.., incorrect plotting, newly eligible area, etc.) other detailed documentation corroborating location of the address in a HUBZone. This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. For the asserted 'principal office,' s a lease, or rental agreement, or deed, that was in effect on the date of electronic verification of the digital application present and legible? (Note that if the Applicant is a home-based business, a lease, rental agreement, or deed in the name of the resident, in lieu of the Applicant, is acceptable.) This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' obtain a legible lease, rental agreement, or deed, as evidence that the asserted principal office is located in a HUBZone. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, documentation must be fully executed, have an effective date on or before the electronic verification date, and be currently in force (unexpired). (Note that if the Applicant is a home-based business, a lease, rental agreement, or deed in the name of the resident, in lieu of the Applicant, is acceptable.) Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Principal Office and 35% Employee HUBZone Residency, All, Payroll
Is a list of employees that worked for the firm at the date of electronic verification of the digital application present and legible? This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' obtain a legible list of employees who worked for the Applicant at the date of electronic verification of the digital application. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Is it sufficient? To be sufficient, the employee list must be comprehensive, as of the date of electronic verification, identifying each individual who meets the HUBZone definition of employee, whether he/she is an owner of the firm, at what geographical location he/she performs most of his/work, how many hours per month he/she works, whether he/she is compensated as an employee or contractor, whether he she is asserted to be a HUBZone resident, and reconcile to the payroll record for the period that includes the date of electronic verification. (If the employee list does not reconcile to payroll, an explanatory narrative must be provided.) This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Does search of the Internet corroborate the Applicant's submission regarding principal office location? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Suggested Internet research approaches include common search engines (e.g., Google, etc.), System for Award Management (SAM), Dynamic Small Business Search Page (DSBS), commercial data bases (e.g., D&B, Experian, etc.), real estate date bases (e.g., Realtor.com, Zillow, Redfin, etc.). Any results that are inconsistent with the application should be noted to the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Principal Office and 35% Employee HUBZone Residency, All, Payroll
Is the firm’s official payroll, or analogous document, for the pay period that includes (i.e., ‘covers’) the date of electronic verification of the digital application present and legible? This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer "No,' obtain a legible list of employees who worked for the Applicant at the date of electronic verification of the digital application. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. Are sufficient payrolls, or analogous documents, to establish whether or not individuals meet requirements of the HUBZone definition of ‘employee’ present and legible? (Note that if an Applicant's owner(s) is/are uncompensated, an Owners Statement, detailing hours worked per month, for each such owner, should be provided.) This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Is it sufficient? To be sufficient, the payroll documents must be comprehensive as of the date of electronic verification, and enable determination of how many hours per month each individual worked, and whether he/she is compensated as an employee or contractor. (Note that if an Applicant's owner(s) is/are uncompensated, an Owners Statement, detailing hours worked per month, for each such owner, should be provided.) (If the payroll does not reconcile to the employ list, an explanatory narrative must be provided.) Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

35% Employee HUBZone Residency, All
Fore each and every employee asserted to be a HUBZone resident, is a corroborating HUBZone map present and legible? This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer "No,' obtain a legible HUBZone map for each employee asserted to be a HUBZone resident. If this documentation is unavailable, obtain an explanation from the Applicant. This explanation should be included in the file. For each and every employee asserted to be a HUBZone resident, is a legible copy of a document corroborating residency (e.g., unexpired driver's license, identification card (issued in lieu of a driver’s license), voter's registration card, mortgage statement, lease, rental agreement, or affidavit, etc.) effective on date of electronic verification of digital application, present? This question should be answered, 'Yes,' or 'No,' for all organizational forms. If you answer 'No,' please obtain an explanation from the Applicant addressing the reasons that you have found the document insufficient. This explanation should be placed in the file. Does search of the Internet corroborate the Applicant's submission regarding employment of HUBZone residents? This question is relevant to all organizational forms. Answer 'Yes,' or 'No,' as appropriate. Suggested Internet research approaches include common search engines (e.g., Google, etc.), System for Award Management (SAM), Dynamic Small Business Search Page (DSBS), commercial data bases (e.g., D&B, Experian, etc.), real estate date bases (e.g., Realtor.com, Zillow, Redfin, etc.). Any results that are inconsistent with the application should be noted to the file. Importantly, the HUBZone program helps small businesses in urban and rural communities. It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging. It is important to understand the intent of the program because by doing so it helps us understand the rationale behind the regulatory requirements. For example, the HUBZone regulations define principal office as the location where the greatest number of the concern's employees work. Even though employees who work the majority of their time in job sites are excluded from the calculation to determine the principal office for those firms in service or construction, these businesses still have to have at least an employee working from this office. Why? To spur additional economic growth thru economic multiplier effect (i.e., buying lunch across the street, dropping off the dry cleaning next door, etc.) and capital investment (i.e., restoring an abandoned site to accommodate workers). Also, the minimum 35% employee HUBZone residency requirement – that we’ll cover in a bit, plays an enormous part in revitalizing these poor areas because the HUBZone employers provide employment opportunities to its residents that might otherwise would not have had. Also, we have seen that some employees working for HUBZone firms who were not living in HUBZones, move into HUBZone addresses further stimulating the revitalization of the area. We have enven seen landlords advertising their residential (and commercial) buildings as “HUBZones”! -- HUBZone Program --

Thank you! Conclusion -- HUBZone Program --
Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful. However, please contact us with any additional questions you may have about the program or application process. The HUBZone office offers eligibility assistance on Tuesdays and Thursdays from 2:00 to 3:00 p.m. EST. You are invited to call Access code #. This is an interactive conference call where HUBZone staff will present a specific eligibility topic followed by a general question session. Firms seeking specific status of its application or answers about the supporting documentation requested, need to the SBA HUBZone Business Opportunity Specialist working on the application because that person would be in the best position to provide individual assistance. Remember to periodically visit our website at for the latest information regarding HUBZone eligibility. Thank you. -- HUBZone Program --

HUBZone Program – Application Screening

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HUBZone Program – Application Screening

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