Top 5 States with HUBZone Certified Firms

Update: As of May 2014, the number has dropped to 5,987. See below for April Data. This is a drop of 45 hubzone certified participants since April.

There are 6,032 active SBA HUBZone Certified firms as of April 2014. Below is an info graphic showing the location by state and number of active SBA HUBZone Certified firms. The source of this information is the SBA Dynamic Small Business database.

HUBZone infographic

HUBZone Certified Firms by Location as of April 2014

The top five states with HUBZone Certified Firms are:
1. California – 540
2. Oklahoma – 361
3. Virginia – 310
4. Texas – 279
5. Florida – 243

The top five states with the lowest number of HUBZone Certified firms are:
1. Delaware – 5
2. Rhode Island – 7
3. Vermont – 13
4. Maine – 18
5. Connecticut – 20

This information is provided by Cloveer.com.

Cloveer provides products and services on the SBA 8(a), HUBZone, 8(m) and VA VetBiz programs.

 

A list of items required for HUBZone Certification

A list of Items required for HUBZone Certification

1. SAM, SBA DSBS and DUNS profiles (all registrations must match address of principal office of the firm).

2. Identification of Primary NAICS code for firm.

3. Identification of Principal Office, Other Offices, Jobsites and Business mailing address if different from principal office address. Also provide the days and hours each office is staffed.

4. Average number of employees on the payroll during the last 12 calendar months.

5. Lease/rental agreement for principal office and any other offices. The lease agreement must identify the full name of the business and the address indicated as the principal office. If the location is a residence, a copy of the deed must be provided.

6. Liability Insurance for principal office.

7. Utility bill or Telephone bill (for period covering date of electronic submittal). This bill must identify the full name of the business and the address indicated as the principal office.

8. A copy of the most recent Balance Sheet and Income Statement for firm.

9. Last three (3) years of business’ tax returns, including all schedules and attachments, or as many as the firm has, if less than 3 years for the applicant firm.

10. Last three (3) years of business’ tax returns, including all schedules and attachments, or as many as the firm has, if less than 3 years for all affiliate firms.

11. Most recent personal Federal tax return for all owners, including all schedules,  attachments and W-2’s.

12. Citizenship documentation of all business owner(s) that are U.S. citizens

13. Payroll report covering date of electronic submission.

14. Does the company have an ESOP plan? Copy of ESOP plan must be provided, if applicable.

15. Does the company have any Joint Venture agreements? Copy of Join Venture plan must be provided, if applicable. Additional information may be needed on the JV and any affiliates.

16. For anyone who is a stock holder, board member or officer – do they have ownership or hold a position in another company? If yes, they must provide the last three years of taxes for each company identified. Additional information may be needed, if the primary NAICS code is a based upon employees vs. dollars.

If the Firm is a Corporation:

1. Copy of firms Articles of Incorporation and any amendments and foreign filings

2. Copy of any DBA or Fictitious Business Name Filings

3. Copies of all issued/cancelled stock certificates (front and back), and stock ledger

4. Corporate Bylaws and any amendments

5. Current Certificate of Good Standing from each state you operate within

6. Listing of all current board members

If the firm is a Limited Liability Company (LLC)

1. Copy of the firms Articles of Organization and any amendments and foreign filings

2. Copy of any DBA or Fictitious Business Name Filings

3. Copy of the firms Operating Agreement and any amendments

4. Current Certificate of Good Standing from each state you operate within

If the firm is a Partnership

1. Copy of the firms Partnership Filing and any amendments and foreign filings

2. Copy of any DBA or Fictitious Business Name Filings

3. Partnership Agreement and any amendments

4. Current Certificate of Good Standing from each state you operate within

If the firm is a Sole Proprietor

1.Copy of any DBA or Fictitious Business Name Filings

All other information required:

1. HUBZone maps of employees’ home address

2. Most recent State Unemployment tax filing/report and Federal Form 941

3. Valid (unexpired) Drivers License, DMV ID or voter registration cards for each employee residing in a HUBZone

4. Provide a listing of any paid or unpaid owners, for salary or hourly employees or any other individuals who work for the firm. List should include full name, home address, number of hours worked per week and work location(principal office, other office, or job site).

5. Identify if there are any shared employees, shared facilities or equipment, shared licenses required to do business or bonding assistance between the applicant firm and any affiliates.

6.If you use independent contractors, you must provide:

a. The complete name(s) of all independent contractor(s); b. Signed copies of all executed contracts; c. Detailed description of work performed by all independent contractors including the number of hours work, the type of work performed, and where they perform their work. d. Copies of all invoices from the independent contractors, and proof of payment for all invoices; e. If any of the independent contractors have or have had in the past, business cards issued by your firm, please provide a copy of the business card; f. If any of the independent contractors have email accounts issued to them by your firm, please provide the individual’s email address.

7.Signed and Notarized HUBZone Program Certification Signature Sheet

For more information and assistance with your HUBZone Application, please call us at 813-333-5800 or visit http://www.cloveer.com/hubzoneapplication.html.

5 common hubzone eligibility questions

1. Can a startup company apply for HUBZone Certification and get Certified?

Answer: Yes. A startup company can apply for HUBZone Certification and get Certified as long as it can meet the basic eligibility requirements. You must be able to provide a current lease or rental agreement for the principal office, or a deed or rental agreement, for your primary residence, if you operate out of your residence. You must also provide a copy of the most recent (less than 30 days old) utility bill or telephone bill in the name of the business concern too for the principal office location.

2. If I don’t have commercial office space can I get HUBZone Certified?

Answer: Yes. If your principal office is located within your residence you will need to provide a copy of the deed for the property.

3. If I am the only owner and employee for the business and do not pay myself a salary, can I get HUBZone certified?

Answer: Yes. all non-paid owners who work 40 hours, a month, are considered an employee. In this case, your principal office and residence must be located in designated SBA HUBZone.

4. If I have multiple office locations, how does the SBA handle this?

Answer: You are required to have a separate Dun and Bradstreet profile for each office location where you have a lease or rental agreement. Your principal office will be determined as the office where the greatest number of employees report to. Jobsites or client sites are excluded.

5. Is there a basic checklist of documents that I must gather for my HUBZone Application?

Answer. Yes. Download our basic checklist. This checklist may not identify everything needed by you or your business concern based upon your unique circumstances. The items in this checklist must meet certain regulatory requirements so we suggest using the checklist for gathering purposes only and not for submission.

For more information on HUBZone Certification call us at 813-333-5800 or visit http://www.cloveer.com/hubzoneapplication.html.

3 SBA HUBZone Application Killers

1. The firm’s Dun and Bradstreet (DUNS) profile does not show the correct company name or primary/physical office address.

Your firm’s Dun and Bradstreet profile must show the exact name of your company as it is shown on your Articles of Formation (Organization or Incorporation) documents. If you operate as a sole proprietor, your Dun and Bradstreet profile should show the full name of the individual and not a dba name (Doing Business Name) or fictitious business name used.

 Additionally, your Dun and Bradstreet profile must show the correct primary/physical office address that you defined within your HUBZone application.

2. Payroll reports provided do not contain all of required information. 

Your payroll report must show all employee names, number of hours worked for that pay period, the beginning and ending date of the pay period, wages, taxes and any adjustments.  

Any employee who has been defined as one the 35% required to meet the SBA regulations must have worked a minimum of 40 hours in the month of the payroll report provided to be considered as full-time and they must appear on the payroll report covering the application date.

3. Articles of Formation (Organization or Incorporation) filed with your Secretary of State show a principal office address at some place other than what you defined in your HUBZone Application paperwork.

If you have changed your principal office address after filing your original or amended formation documents you must ensure that all filed documentation with your Secretary of State shows the principal office address that you have defined within your HUBZone Application.

These are just 3 of many HUBZone Application killers that will get your application denied. A denial of your HUBZone Application results in a minimum of 90 days day’s until you can reapply again. Submitting incorrect or inconsistent information can cause your application to be severely delayed.

If you are looking for assistance in preparing a complete and compliant HUBZone Application so it is submitted correctly and results in a successful HUBZone Certification in 90 days or less, please call us at 813-333-5800 or visit http://www.cloveer.com/hubzoneapplication.html.

We have a 100% success rate for all HUBZone Applications prepared and submitted.

Where to find information on 8(a), HUBZone and Women-Owned Small Business Contracts

The most comprehensive source for information on awarded 8(a), HUBZone and Women-Owned Small Business Contracts is the Federal Procurement Data System (FPDS).

The FPDS contains historical information on contracts whose estimated value is $3,000 or more.

To gain access to this system you must register. Registration is free.

The FPDS allows you to drill down deep within the data inputted into the system and can provide you valuable information to help in your Federal Marketing efforts.

For example, you can perform the following searches within the system.

1. How much did a specific federal agency spend in the most recently government fiscal year or past years using 8(a), HUBZone or Women-Owned Small Business as the set-aside method.
2. How many 8(a) actions or contracts were awarded within a specific agency. You can also drill down to a specific department, office or region within the agency.
3. Detailed information on the awarded contract such as:

  • The solicitation number
  • Date signed or completed
  • Type of contract
  • NAICS code
  • Product or Service Description
  • Place of Performance (City, State or Zip Code)
  • Competition Information (8(a), HUBZone, Women-Owned, etc.)
  • Name of Contractor

These are just a few of the parameters that you can search on within the FPDS. All of this information can give you a leg up on your competition by allowing you to narrow your marketing efforts to ferderal clients who have purchased your products and services.

Download a report (PDF) that shows the amount spent and the number of contracts awarded with each federal agency in FY 2011.

Here is a summary:
8(a):
Number of Contracts: 117,343
Total Dollars Spent: $16,633,899,024.15

Women-Owned:
Number of Contracts: 318,937
Total Dollars Spent: $16,839,376,300.17

HUBZone:
Number of Contracts: 91,717
Total Dollars Spent: $10,001,960,445.11

For more information on 8(a) Certification, HUBzone Certification or Women-Owned Small Business Certification please call us at 813-333-5800 or visit www.cloveer.com.

 

How to Determine your Primary NAICS Code

What is a NAICS code?

A NAICS code is a series of numbers (up to six digits) that establishes a specific business activity by the Federal Government.

Your primary NAICS code is the six digit code that represents the largest segment of your business’s revenues earned within its most recently completed fiscal year.

How can I determine what my primary NAICS Code is?

You can use the search feature at www.census.gov/naics. Within the “2007 NAICS Search” box, enter a keyword that describes the services provided by your business. A list of primary business activities containing that keyword and the corresponding NAICS codes will appear. Choose the one that most closely corresponds to your primary business activity, or refine your search to obtain other choices.

The following are two examples:

1. If you are a business in which your largest segment of revenue earned in its most recently completed fiscal year was as a software developer, your primary six digit NAICS code would be 541511.

2. If you are a business in which your largest segment of revenue earned in its most recently completed fiscal year was in commercial construction, your primary six digit NAICS code would be 236220.

What is the purpose of establishing a primary NAICS within my 8(a) Application?

1. It represents to the SBA what your primary business activity is (e.g. what your business does). It is important to note, that your supporting documentation such as the copies of contracts/invoices showing the scope of work performed will backup your establishment of your primary NAICS code.

2. Once you establish your primary NAICS code, the SBA will review your last two years of contracts and taxes to determine if you have earned the largest segment of your revenues within this NAICS code and if the revenues are deemed to be sufficient to meet the two years in business requirement. If you have not earned the largest segment of revenues within your primary NAICS code for two consecutive years, you will not meet the potential for success criteria established by the SBA unless you seek a two year waiver.

3. Finally, it establishes your SBA size standard limit. You must be classified as a small business concern to participate within the 8(a) Program. You can view more information on size standards at www.sba.gov/content/guide-size-standards

Can you have more than one primary NAICS code?

No. You can only have one primary NAICS code. However, you can multiple secondary NAICS codes listed within your SAM (System for Award Management) or DSBS (Dynamic Small Business Search) profile.

For more information on the SBA 8(a) Program, visit cloveer.com