SBA Underutilized Business Zones


On Aug. 23, SBA published updates to HubZone program, clarification.


  • SBA proposed to update Historically Underutilized Business Zone (HUBZone) Program.
  • Aims to clarify and improve policies around comprehensive 2019 revisions to program.
  • Sections Amended
  • Measure would amend 13 CFR 121, Small business size regulations, and 13 CFR 124, 8(a) business development/small advantaged business status determinations.
  • Also, 13 CFR 125, Government contracting programs; 13 CFR 126, HUBZone program.
  • Additionally, 13 CFR 127, Women-owned small business federal contract program.
  • Further, would amend 13 CFR 128, Veteran small business certification program; 13 CFR 134, Rules of procedure governing cases before office of hearings and appeals.
  • HUBZone Clarifications
  • Require certified HUBZone small business to be eligible as of HUBZone contract date.
  • Also proposes to change SBA's size and 8(a) Business Development (BD) regulations.
  • Made changes to the women-owned and veteran small business certification programs.
  • Would also delete the program specific recertification requirements contained in SBA's size, 8(a) BD, HUBZone, women-owned and veteran small business certifications.
  • Recertifications will be moved to new section that cover all size/status requirements.
  • Request for Comments
  • Comments on HUBZone changes will must be received on or before Oct. 7, 2024.
  • Sep. 2024 SBA Clarification to HubZone
  • On Sep. 19, 2024, SBA published clarification to the scope of the Aug. 23 proposal.
  • Clarifies that prospective policy change to eliminate or restrict the exclusion from affiliation for mentor-protégé joint ventures is outside the scope of the proposed rule.
  • SBA is also not addressing the applicability of the HUBZone price evaluation preference to the HUBZone joint ventures that are formed under the Mentor-Protégé Program.
  • Dec. 2024 SBA Final Rule
  • On Dec. 17, 2024, SBA issued final rule in the federal register, effective Jan. 16, 2025.

Regulators SBA
Entity Types CNSM; Corp
Reference 89 FR 102448, 12/17/2024; 89 FR 76751, 9/19/2024; 89 FR 68274, 8/23/2024; 84 FR 65222, 11/26/2019; Docket SBA-2024-0007; RIN 3245-AH68; Citation: *13 CFR* 121, 124, 125, 126, 127, 128, 134;
Functions Compliance; Financial; Operations; Reporting
Countries United States of America
Category
State
Products Corporate; Loan
Regions Am
Rule Type Final
Rule Date 8/23/2024
Effective Date 1/16/2025
Rule Id 223682
Linked to N/A
Reg. Last Update 12/17/2024
Report Section US Consumer

Last substantive update on 12/19/2024