SBA clarifies HUBZ changes

Guidance on longterm leases for HQs; also, goals for processing times

      The Small Business Administration on April 30 updated its HUBZone “FAQ” Web page to include a “policy clarification” regarding a recent final rule on maintaining HUBZone eligibility by signing a long-term lease for an office in the zone.

      There also was an update to SBA’s HUBZone application processing times.

HUBZone “pivot”

      In the April 30 update, the SBA appeared to address concerns about an alleged recent “pivot” in SBA advice on the long-term lease arrangements for HUBZone eligibility. The concerns were highlighted by the PilieroMazza PLLC law firm in its recent blogs. (See “SBA Reverses on HUBZones,” April 23, 2021 edition, Set-Aside Alert).

      SBA’s clarification included six separate provisions, including this one:

      SBA stated: “A firm is not eligible for this provision if its principal office is located in a Redesignated Area or Qualified Disaster Area at the time of the firm’s certification or certification anniversary date. However, if a firm’s principal office is in a location that is designated as both a qualifying area (e.g., Qualified Census Tract) and a non-qualifying area (e.g., Redesignated Area) at the time of the firm’s certification (if the investment was made prior to the firm’s certification) or certification anniversary date (if the investment was made after the firm’s certification), the firm would be eligible for this provision.”

      SBA has not responded to requests for comment.

Processing times for applications

      The SBA’s FAQ included an update on goals for processing times for HUBZone applications, including:

• For validating an application, from 10 business days to two;
• For uploading documents, from 10 business days to three; and
• For closing a case for non-response, five days.

More information:
HUBZone FAQ:https://bit.ly/3wdvbeN

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