The U.S. Small Business Administration’s Administrator Isabella Casillas Guzman has announced the expansion of HUBZone, a program that provides small businesses in low-income communities that hire low-income residents opportunities to compete in the federal marketplace.
Illinois becomes the first state to receive approval of Governor-Designated Covered HUBZones, with the SBA extending HUBZone privileges to five additional counties. These counties include Cass, Macoupin, Schuyler, Stephenson, and Warren. The same privileges will likewise be extended to 30 additional census tracts across the state, from McHenry County in the north to Alexander County in the south. Altogether, these 35 new HUBZones comprise a total population of approximately 236,500.
Under the new HUBZone rule, a governor may submit one petition per year requesting that SBA designate certain qualifying areas, including Opportunity Zones as Governor-Designated Covered Areas. In reviewing a request for designation included in the petition, the Administrator may consider how the selections meet the objectives of the state’s economic development strategies.
The newly designated areas will be added to the HUBZone map as “Governor-Designated Covered Areas.” To be eligible for this program, communities must have a population of 50,000 or fewer, an average unemployment rate is at least 120 percent of the average unemployment rate for the U.S. or state (whichever is lowest) and be located outside of an urbanized area.
For information about the HUBZone program, visit www.sba.gov/hubzone.
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