HUBZone program: requirements, benefits and how to qualify

SBA's HUBZone program explained: the principal office and 35% employee residency rules, the 10% price evaluation preference, set-asides, and how to apply.

By the Seal the Bid team · Updated October 29, 2026

The HUBZone (Historically Underutilized Business Zone) program helps small businesses in economically distressed areas win federal contracts. The government aims to award 3% of contract dollars to HUBZone firms each year, and regularly falls short, which is why agencies look for certified HUBZone businesses.

Who qualifies

  • The business is small under SBA size standards (check here).
  • At least 51% owned and controlled by U.S. citizens (or certain other eligible owners).
  • Its principal office is in a HUBZone (check addresses on SBA's HUBZone map).
  • At least 35% of employees live in a HUBZone.

What it gets you

  • Contracts set aside for HUBZone firms, and sole-source awards in some cases.
  • A 10% price evaluation preference in full and open competitions: your price is treated as lower than larger firms' prices for evaluation.
  • Primes seeking HUBZone subcontractors to meet their goals.

How to apply

  1. Register in SAM.gov.
  2. Check your office and employees' addresses on SBA's HUBZone map.
  3. Apply through SBA's free online certification system with payroll records, employee addresses and ownership documents.
  4. Recertify every year and keep the 35% employee rule in mind when you hire.

Frequently asked questions

What are the HUBZone requirements?

Be small, at least 51% owned and controlled by U.S. citizens, have your principal office in a HUBZone, and have at least 35% of employees living in a HUBZone.

What is the HUBZone price preference?

In full and open competitions, a 10% price evaluation preference is applied in favor of HUBZone firms.

Is HUBZone certification free?

Yes. Applying to SBA is free.

Find open HUBZone set-asides on our contracts board, or read set-asides explained.