HUBZone rule in effect Jan. 1

Rule affects certification, residency, owner status

      A final rule with several big changes to HUBZone regulations is going into effect Jan. 1, 2020. The proposed rule initially was released in October 2018.

      The Small Business Administration announced that the final rule would be published in the Federal Register on Nov. 26.

      Key provisions of the rule include:

• Firms will need to certify their HUBZone status annually, rather than at the time of bid and award;
• Regulators would consider a HUBZone firm non-compliant with the 35% employee residency requirement if the percentage dropped below 20%;
• HUBZone employees would be counted toward the 35% residency requirement even if they move out of the HUBzone; and
• Owners would be counted as employees if they work at least 40 hours per month for the HUBZone firm.

More information:
SBA notice: https://federalregister.gov/d/2019-24915

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