The U.S. Small Business Administration (SBA) South Dakota District Office has announced the launch of a new Historically Underutilized Business Zone (HUBZone) map for the state. Firms in newly released designated underserved areas are now eligible to apply for HUBZone certification, enabling increased competition for federal government contracts set aside for HUBZone-certified firms. Federal contracts foster job creation and economic growth in rural and urban economically disadvantaged areas.
HUBZones are designated based on economic and population data from the Census Bureau and other federal agencies, using a formula established by Congress. The new HUBZone map shows the changes reflecting updates from the 2020 U.S. Census. The HUBZone Program also rolled out a new key initiative in Governor-Designated Areas, providing increased opportunities to expand the HUBZone Program into distressed rural communities.
According to SBA South Dakota District Director Jaime Wood, the program change allows state governors to petition SBA once a year to designate or redesignate specific rural areas as HUBZones promoting increased access to government contracts and economic opportunities in rural areas. “SBA worked closely with the South Dakota Governor’s Office of Economic Development (GOED) team for several months in 2023 to identify the most economically disadvantaged areas of the state that could benefit from the expansion,” said Wood. “We’re grateful to South Dakota Governor Noem and the GOED team for their leadership and partnership in shaping the conditions for more South Dakota small businesses in HUBZone areas to increase revenue by becoming part of the federal government supply chain.” said Wood.
The SBA approved SD Governor newly designated* and redesignated HUBZone counties include:
- Bennett
- Brookings*
- Buffalo
- Butte*
- Charles Mix*
- Clark*
- Clay*
- Corson
- Custer*
- Day
- Deuel
- Dewey
- Fall River
- Gregory
- Haakon
- Jackson
- Jones
- Lyman*
- McPherson
- Mellette
- Oglala Lakota
- Roberts
- Todd
- Walworth
- Ziebach
“The HUBZone Program is an essential component of President Biden’s commitment to expanding federal contracting opportunities for small businesses across the country,” said SBA Region Administrator Aikta Marcoulier. “For small businesses in new HUBZone areas, SBA’s certification provides a gateway to billions of dollars in federal contracting opportunities, contributing to the economic growth and strengthening of underserved communities across South Dakota while also ensuring that employment opportunities benefit the people living in communities that need positive economic impact.”
The HUBZone program fuels eligible small business growth with a goal of awarding at least three percent of federal contract dollars to HUBZone-certified companies each year. HUBZone certification qualifies a small business to bid on contracts reserved for HUBZone businesses and receive 10 percent price evaluation preference in full and open competition procurements.
Prior to participating in the HUBZone program, a small business must be certified by SBA with recertifications due annually. HUBZone Program Qualifications include a small business from any background that meets SBA size standards; is at least 51 percent owned by U.S. citizens or is owned by Indian Tribal Government, Alaska Native Corporation, Community Development Corporation, Native Hawaiian Organization, or Small Agricultural Cooperative; have a principal office located in a HUBZone; and have at least 35 percent of employees living in a HUBZone. There is no limit to the length of time a business can participate in the program if it continues to qualify.
To qualify for the HUBZone program a business must:
- Be a small business according to SBA size standards
- Be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe
- Have its principal office located in a HUBZone qualified area.
- Have at least 35% of its employees living in a HUBZone qualified area.
Full HUBZone qualification criteria are available in Title 13 Part 126 Subpart B of the Code of Federal Regulations. The SBA encourages small businesses to learn more about the HUBZone Program at the SBA website: https://www.sba.gov/federal-contracting/contracting-assistance-programs/hubzone-program.
Comments