Advocates seek HUBZone reset

The Small Business Administration’s HUBZone program has been struggling to meet its goals for years, and advocates are pushing for legislative changes to improve the program.

The HUBZone Contractors National Council is asking Congress to reduce the HUBZone employee residency requirement from 35%, down to 33%.

It is a small change that advocates say would simplify and make it easier for very small businesses to meet the requirement. The guideline could be met with one out of every three employees living in the zone.

Currently, the requirement is especially burdensome in certain situations. For example, for companies with three employees, two must live in the zone in order to exceed 35%. For companies with six employees, three must live in the zone. For nine employees, four must live in the zone.

The Native American Contractors Association also has an idea to ease the burden of the 35% employee residency: they want it applied only to central office employees, not to employees added as a result of a HUBZone contract.

The HUBZone council also is seeking an increase of the HUBZone redesignation period to seven years, from the current three years.

This change would “allow firms to make more substantial, long-term investments,” the council said in a statement on its website.

Also, for companies who make significant capital investments to move into a HUBZone, the council says the principal office requirement would be met, regardless of redesignation, until a firm relocates or no longer meets other requirements of the program.

More Information:
HUBZone council: http://goo.gl/GqY0bs
NACA: http://nativecontractors.org/policy-2/policy-priorities

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