New Rule Widens HUBZone Eligibility SBA says a new interim rule will make more companies eligible for the HUBZone program. The rule implements provisions of the Small Business Reauthorization Act that was signed into law by President Bush earlier this year. Among the changes, effective Aug. 30: A grandfather clause allows all current HUBZone areas to remain in the program until 2010 census figures are released. A HUBZone company must be at least 51% owned by American citizens; the previous law required 100% American ownership. Companies owned by small agricultural cooperatives that operate in rural HUBZones are also made eligible for the program. The rule changes the qualifications for designating a county as a HUBZone and treats areas around closed military bases as HUBZones for five years after the closing. Tribally owned HUBZone companies must have their principal office in a HUBZone and 35% of their employees must live in a HUBZone, the same requirements as for all other companies in the program. The rule provides a 5% HUBZone evaluation price preference in international food aid procurements by the Agriculture Department. “SBA expects that as a result of this interim rule, there will be significant increases in the number of concerns participating in the HUBZone program and in the number of HUBZone contract dollars,” the agency said. The interim rule is RIN 3245-AF31 in the Aug. 30 Federal Register. Comments are due by Oct. 31.