On HUBZone's Fifth Anniversary, Contracting Lags Ten thousand companies have been certified in the HUBZone program as the program marks its fifth anniversary, SBA Administrator Hector Barreto announced. By comparison, there are 7,425 8(a) firms listed in the Central Contractor Registration. “HUBZone is a proven, powerful tool for entrepreneurship and job growth,” he said in a statement. “There are now HUBZone firms in all 50 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands.” But those firms won just 1% of federal prime contract dollars in fiscal 2003, according to the Federal Procurement Data System. It was the best performance ever, but far short of the 3% goal set by Congress. Only two agencies, the departments of Interior and Housing and Urban Development, exceeded the goal. The HUBZone program was created in 1997 in legislation sponsored by Sen. Christopher Bond (R-MO). Its backers are now defending it against an attempt to make fundamental changes. The Small Business Administration reauthorization bill approved by the House Small Business Committee, H.R. 2802, would require owners of HUBZone firms to meet the same net-worth limits as owners of small disadvantaged businesses. HUBZone backs say that would disqualify the majority of certified companies. The bill is awaiting House action. For a small business to be HUBZone-certified, its principal office must be located in a HUBZone – a poor community — and at least 35% of its employees must live in a HUBZone. SBA has emphasized quick and easy entry into the program. Small businesses can research their location online to determine if they are located in a HUBZone. If so, they can apply for certification online and usually receive a determination within 30 days. The website is www.sba.gov/hubzone. However, that easy access leaves the program open to fraud, the General Accounting Office warned last year. GAO criticized SBA for failing to verify the eligibility of certified companies.