Hubzone Application. What information must be provided to get certified.

Keep in mind that each Hubzone Application is unique and document requirements vary for each Hubzone Application.

Below is a general list of items that will need to be included within your Hubzone application. Your unique application may require additional items not specified below.

IMPORTANT NOTE: The electronic verification date for your firm’s HUBZone application is the date on which the applicant authorizes the electronic HUBZone Application for processing by the SBA. The verification notice will be sent to the firm via electronic communication by the SBA after completing the HUBZone electronic Application. This date is extremely important to note.

Documents demonstrating your firm meets Ownership & Control and Size requirements:

Corporate documents: Although your firm may not be required to submit all of the following documentation to the Secretary of State, in your state, it is nonetheless required and necessary to determine the eligibility criteria for the SBA HUBZone Program. Failure to provide these documents will result in your application being withdrawn or declined by the SBA.

The following documents must be provided, each of which must be valid at the time of electronic verification and have all required signatures:

If your firm is a Corporation:

  • DBA (Doing Business As) Certificate, if applicable.
  • Articles of Incorporation and any amendments (Only submitting the Secretary of State (SOS) seal certificate is not acceptable. You must also submit a copy of the firm’s Articles of Incorporation along with the SOS seal certificate.)
  • Corporate Bylaws and any amendments.
  • Executed Stock Certificates (front & back).
  • Stock Ledger or Register (This ledger or register should summarize all stock actions taken from issuance through transfer and or cancellation.

If your firm is a Limited Liability Company (LLC):

  • DBA (Doing Business As) Certificate, if applicable.
  • Articles of Organization and any amendments (Only submitting the Secretary of State (SOS) seal certificate is not acceptable. You must also submit a copy of the firm’s Articles of Organization along with the certificate with the SOS seal certificate.)
  • Operating Agreement and any amendments.

If your firm is a Sole Proprietor:

  • DBA (Doing Business As) Certificate, if applicable.

If your firm is a Partnership:

  • DBA (Doing Business As) Certificate, if applicable.
  • Partnership Agreement and any amendments.

Documents demonstrating Firm Ownership, any Affiliation and Citizenship:

  • Proof of US Citizenship for owners. One of the following:
    • Birth certificate
    • Current valid U.S. Passport
    • Certificate of Naturalization.
  • Other key ownership related documents:

If your firm is a member of a franchise you will need to provide a copy of the franchise agreement. If your firm is owned in part by an ESOP or Trust you will need to provide a copy of the ESOP plan or Trust Agreement.

Documents demonstrating your firm meets the Hubzone employment and principal office requirements:

  • Firm location list that lists all locations maintained by your firm or used as job sites to include:
    • Complete address for all office locations and each applicable job site location(s).
    • Specification of which of the following 3 location types it is:
      • Principal Office: Location maintained by your firm (i.e., owned or leased by your firm) where the greatest number of your firm’s employees at any one location perform their work.
      • Other firm location(s): Location(s) maintained by your firm which are NOT the Principal Office.
      • Job site: Firms whose “primary industry” is service or construction should classify as job sites all locations used to fulfill specific contract obligations.
    • A listing of all employees working at the Principal Office.
    • The number of hours that each employee performs their work at the Principal Office location that include the days of week and business hours each office is staffed.
    • The number of hours that each employee performs their work at other office location(s) that include the days of week and business hours each office is staffed at other office location(s).

Please Note: If the firm only operates from the principal office location and there are no other locations or job sites, you must provide the requested information for the principal office location and indicate that there are no other locations and or job sites in writing.

  • A Hubzone Map printout of your principal office location.
  • Lease/rental agreement/deed for Principal Office: A copy of a fully executed lease/rental agreement or deed for the firm’s Principal Office location which is valid and in full effect at the time of electronic verification of your application. Your firm’s full legal name must be identified as being the lessee, renter, or owner. If your lease/rental agreement or deed only includes a parcel description, you must also provide a property tax bill and/or insurance policy supporting the physical address of the Principal Office location.

If you operate out of your primary residence, you must provide a copy of the deed for your primary residence, a copy of a utility bill that covers the period of time including the electronic verification of your application. Examples include gas, electric, water, sewer or landline telephone. Cellular phone bills are not acceptable. You must also provide a copy of the firms insurance policy too.

Note: A property tax bill and/or insurance policy is for verification of the physical address only. Submission of this document in lieu of the required lease or deed is not acceptable.

  • Utility bill for Principal Office:  You must provide a copy of a utility bill for the firm’s Principal Office that covers the period of time including the electronic verification of your application. Examples include gas, electric, water, sewer, internet or landline telephone. Cellular phone bills are not acceptable. If utilities are included with the rent and you cannot provide a land-line telephone bill, you must provide evidence that utilities are included within lease/rental agreement or signed affidavit from lessor indicating this is the case.
  • Employee list: You must provide a complete listing of all who work for the firm at the time of electronic verification, including paid or unpaid owners, salaried or hourly-wage employees, and temporary workers. If an individual has an ownership interest in and works for the business a minimum of 40 hours per month, that owner is considered an employee regardless of whether or not the individual receives compensation. This listing must include for each individual:
    • Full name
    • Description of type of worker, e.g., salaried, included in payroll, owner, leased, obtained through PEO, obtained through union agreement, shared with affiliate, temporary, etc. Note: Some individuals may require multiple designations in the description, “owner, salaried, included in payroll.”
    • Whether or not the individual resides in a Hubzone. This should be supported by the documents specified below regarding Hubzone maps and identification/proof of residence.
    • Number of hours worked per month.
    • Primary work location, e.g., Principal Office, other firm location, OR job site. If the individual works at more than one location, select the location where the individual spends the single greatest portion of their time. (As an example, if an employee works 16 hours per week at the “Principal Office,” 12 hours per week at an “other firm location,” and 12 hours per week at a “job site,” specify the Principal Office as the primary work location).
    • Working days of the week and hours of principal office.
  • Contractor List (If Applicable):

The SBA may use the totality of circumstances to find that independent contractors are considered employees for the purpose of Hubzone certification.

For each independent contractor that worked at least 40 hours during the month preceding the time of review, provide the contractor’s full name and signed copies of executed contracts.

If signed copies of executed contracts are not available, provide:

  • A detailed description of work performed by each independent contractor including the number of hours worked, the type of work performed, and where the work is performed.
  • Copies of all invoices from each independent contractors, and proof of payment for invoices.
  • Do any of the independent contractors have or have they had in the past, business cards issued by your firm? If yes, provide SBA with a copy of the business card.
  • Do any of the independent contractors have email accounts issued to them by your firm? If so, provide SBA with individual’s email address.
  • Payroll records: You must provide a copy of your firm’s official payroll record from a time period which covers the date of electronic verification and shows at a minimum the employee’s name, number of hours worked for that pay period, and wages with taxes and adjustments. (Salaried employees who do not have hours worked specified are assumed to work 40 hours per week.) This payroll record must clearly show the pay period’s beginning and end dates, not just the pay date. Do not submit a combined summary of all the pay periods. Each pay period will need to be provided on a separate payroll record.

Note: In order for the SBA to consider a person working for your firm to be an employee, we must have evidence from your payroll records that the person works at least 40 hours in a month’s time. All payroll records submitted must be for the time of electronic verification and PRIOR.

For example: If Payroll is paid on the 30th of the month and the application is submitted on January 2, 2019. The applicant firm must wait at minimum until the January 31, 2019 payroll is issued before the processing of the application may begin. In this example, you would be prohibited from using the December 31, 2019 payroll date because that date does not include the electronic verification date. For any employees working less than 40 hours in the payroll period which includes the date of electronic verification, you must also provide enough immediately previous payrolls to demonstrate that those employees work at least 40 hours in a month’s time. As an example, if you have a weekly payroll system and an employee who works 10 hours the week of electronic verification, you would need to provide the 3 previous weekly payrolls in order to demonstrate that the person works 40 hours per month for a total of 4 weekly payrolls. The latest of these 4 contiguous payroll periods should include the date of application submission.

  • State and federal employment filings: You must provide complete copies of your firm’s most recently available state unemployment tax filing and the most recently available federal employment quarterly report (Form 941- Employer’s Quarterly Federal Tax Form). The state unemployment report must include the employee listing supporting the summary of wages.

If the firm has not filed any of the above reports, you must note as such in writing. Failure to provide a response to this request will cause a delay in the processing of the application.

  • Hubzone maps of Hubzone residents’ addresses: Copies of the Hubzone Map to verify each Hubzone employees’ residence is in a Hubzone. In order to provide the Hubzone map for each employee, select the following link:

https://maps.certify.sba.gov/hubzone/map

Once you enter the Hubzone mapping system enter the physical address for each Hubzone employee. Print the page using the Printable Version button on the right side of the screen. Print the page exactly as it is displayed including the personal address for each individual. Altering the Hubzone Map or not providing the entire printout will make the document invalid. Please write the employee’s name at the bottom of each map and provide a printed map for each employee and do not provide one locator for multiple employees.

  • Identification/proof of residence for Hubzone residents: You must provided a copy of a valid (unexpired) Department of Motor Vehicles driver’s license, Department of Motor Vehicles Identification card, or voter’s registration card for each of the firm’s Hubzone resident employees. Do not send Social Security cards. The copy must be legible and show the employee’s full name and address. If the address listed is no longer valid or is a PO Box, you must also provide a copy of a current lease agreement, mortgage statement, utility bill (not cell phone), or change of address card in the name of the individual which shows the Hubzone address where the individual resides. Failure to provide sufficient proof of Hubzone residency for employees could lead to your firm being proposed for de-certification.
  • Provided the appropriate HUBZone Program Certification Signature Sheet (based on your firm’s ownership structure)

This form must be signed by an officer of the firm authorized to represent the applicant, notarized, and mailed in hard copy. An email or faxed copy of the Program Certification Signature Sheet will NOT be accepted.

Please note that if all of the above supporting documentation being requested is not received within the allotted time frame, your application may be withdrawn or declined. Failure to submit information and documentation within the allotted time frame is a common cause of applications being withdrawn or declined. Please make note of your submission deadline.

Other Key Tips:

  • You must have a current SAM.GOV, SBA DSBS (Dynamic Small Business Search) and Dun and Bradstreet (D&B) profile for your business. All profiles must match the address of principal office of the firm.
  • You must identify your primary NAICS code within your SAM.GOV and DSBS Profile.

Cloveer provides assistance with all aspects of the SBA HUBZone Program. Please visit our website for more information or call 813-333-5800.

Three Templates to Simplify your HUBZone Application

For companies needing assistance with their HUBZone Application, we offer 3 different templates that can help you to provide the information that the SBA requires.

Firms applying for HUBZone certification have 10 business days from the date of electronic verification of the online application to upload their supporting documentation to the SBA.

This supporting HUBZone documentation must include proof that at least 35% of all of the firm’s employees live in a HUBZone, regardless of where they work, as well as proof of the Principal Office location.

All firms including Corporations, LLCs, Partnerships and Sole Proprietors are required to provide an Employee List and a Firm Location List as part of the required proof.  The SBA requires certain elements to be provided with each of these lists.  Cloveer has designed templates to assist you with providing correct and complete details for your employees and office locations.

In addition, for companies that are run from home rather than a commercial location, we have “Home Lease Letters” to assist you in explaining your principal office arrangements to the SBA.

Visit https://cloveer.com/shop/ to purchase one or more of the below templates. The cost for each template is $50.00 and they are available for immediate download.

Employee List Template

At least 35% of all the firm’s employees must live in a HUBZone, regardless of where they work.

The SBA requires that all HUBZone Applicants provide an Employee List as part of their proof that they meet the 35% HUBZone Residency requirement.

Our Employee List template will assist you to fulfill this requirement.

Firm Location List Template

A firm’s principal office is the location where the greatest number of employees perform their work.  To qualify for HUBZone Certification, that principal office must be located in a HUBZone.

The SBA requires that all HUBZone Applicants provide a Firm Location List as part of their proof that they meet the Principal Office requirements.

Our Firm Location List template will assist you to fulfill this requirement.

HUBZone Home Lease Letter Templates

The SBA requires that all HUBZone Applicants provide a Lease, Rental Agreement or Deed executed in the Company’s name as part of their proof that they meet the Principal Office requirements.

If you run your business out of your personal residence that you own or rent, our Home Lease Letter template will assist you to fulfill this requirement.

Need assistance with your HUBZone Application? With 15 years experience and over 2,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA HUBZone certified.  Contact us today at 813-333-5800 or visiting our website at cloveer.com to discover what Cloveer can do for you.

 

Five Eligibility Requirements to get SBA HUBZone Certified.

Eligibility Criteria 1:
Your business concern’s principal office must be located in a qualified SBA designated HUBZone. Search the SBA’s Mapping system and verify if your principal office is located in a qualified SBA designated HUBZone.

Definition of Principal Office:
Principal office is defined as the location where the greatest number of the business concern’s employees at any one location perform their work. However, for those business concerns whose primary industry is service or construction, the determination of principal office excludes the business concern’s employees who perform the majority of their work at job-site locations to fulfill specific contract obligations.

Eligibility Criteria 2:
Your business concern must be at least 51% unconditionally and directly owned and controlled by persons who are US citizens.

Definition of unconditionally and directly owned and controlled:
Unconditionally and directly ownership means directly owning at least 51% of the business concern. Ownership must be direct and cannot be through another business or trust, unless the trust is revocable and you are the sole grantor and trustee of the trust. Control means both the day-to-day management and long term decision making authority for the business concern. Generally, you should be the highest ranking officer of the business too.

Eligibility Criteria 3:
35% of your business concern’s employees must reside in a SBA designated HUBZone.

Definition of Employee and Reside:
Employee means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours per month. This includes employees obtained from a temporary employee agency, leasing concern, or through a union agreement or co-employed pursuant to a professional employer organization agreement. SBA will consider the totality of the circumstances, including criteria used by the IRS for Federal income tax purposes and those set forth in SBA’s Size Policy Statement No. 1, in determining whether individuals are employees of a concern. Volunteers (i.e., individuals who receive deferred compensation or no compensation, including no in-kind compensation, for work performed) are not considered employees. However, if an individual has an ownership interest in and works for the business a minimum of 40 hours per month, that owner is considered an employee regardless of whether or not the individual receives compensation. Reside means to live in a primary residence at a place for at least 180 days, or as a currently registered voter, and with the intent to live there indefinitely.

Eligibility Criteria 4:
Your business concern must be classified as a small business as defined by the SBA.

Definition of Small Business:
Small business means the business concern, with its affiliates, must meet the size standard corresponding to its primary industry classification.

Eligibility Criteria 5:
Certify that when performing a HUBZone contract, at least 35% of your employees continue to reside in a SBA designated HUBZone. If your concern is owned by a Indian Tribal Government, 35% of your employees engaged in performing that contract must reside within a SBA designated HUBZone. You must “attempt to maintain” the 35% requirement throughout the life of the contract.

Attempt to Maintain
This means that the business can fall below 35% without withdrawing, and losing its contract but must be making efforts to return to the 35% number, such as posting employment positions, etc. The SBA can decertify a firm that does not makes efforts to regain its 35% HUBZone employee requirement.

Need assistance with your HUBZone Application? With 15 years and over 2,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA HUBZone certified.  Contact us today at 813-333-5800 or visiting our website at cloveer.com to discover what Cloveer can do for you.

Don’t think the 8(a) Program or HUBZone Program has any work? Think Again!

If you don’t think the 8(a) Program or HUBZone Program can be a valuable tool for your business just look at the following 8(a) and HUBZone contract information pulled from the Federal Procurement Data System (FPDS) for just the period of 10/1/2014 through 09/30/2016.


8(a) Sole Source Contract Actions:
Total Action Obligations: $17,327,494,322.14
Total Contract Actions: 122,381

8(a) Competitive Contract Actions:
Total Action Obligations: $16,760,620,275.87
Total Contract Actions: 72,546

8(a) with HUBZone Preference Contract Actions:
Total Action Obligations: $13,444,789.30
Total Contract Actions: 29

Summary:
Total 8(a) Sole Source, Competitive and HUBZone Preference:

Total Action Obligations: $34,101,559,387.31
Total Contract Actions: 194,956


HUBZone Set-Aside Contract Actions:
Total Action Obligations: $3,300,688,237.85
Total Contract Actions: 23,405

HUBZone Sole Source Contract Actions:
Total Action Obligations: $78,474,087.11
Total Contract Actions: 1,014

Summary:
Total HUBZone Set-Aside and Sole Source:

Total Action Obligations: $3,379,162,324.96
Total Contract Actions: 24,419


Need assistance with your 8(a)  or HUBZone Application? With 15 years and over 2,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA 8(a) or HUBZone certified.  Contact us today at 813-333-5800 or visiting our website at cloveer.com to discover what Cloveer can do for you.

New Improved SBA HUBZONE Mapping System

The SBA has recently changed the mapping system for the SBA HUBZone Program. The old SBA mapping system was slow, very hard to navigate and not very intuitive. The new improved SBA HUBZone mapping system is a significant improvement to help to locate SBA designated HUBZone locations.

To use the new SBA HUBZone mapping system visit https://maps.certify.sba.gov/hubzone/map. Once on this page, enter the address you are attempting to search. You can also navigate the mapping system by zooming in and out making it much easier to locate a SBA qualified HUBZone location. The system also has a legend that will identify whether or not the address or area being searched is located in a SBA designated HUBZone.

One tip when using the SBA mapping system is be sure the address you are searching for is located in a “Qualified” area and is not a “Redesignated” area. Redesignated areas may be currently designated as a Qualified HUBZone location but will be no longer be Qualified after the date indicated in the SBA mapping system.

Need assistance with your HUBZone Application?

Why should you choose Cloveer Inc. to prepare your HUBZone Application?

1. We live and breath HUBZone Certification!

  • We keep up to date on all of the latest daily SBA HUBZone Program changes.
  • We have a detailed understanding of the current SBA HUBZone Regulations.

2. We have a very strong success rate!

  • We maintain a success rate of over 99% for clients we pre-qualify.
  • We have assisted hundreds of small businesses to achieve and maintain their HUBZone Program Certification.
  • We have real references to back up our success rate, that you can contact.

3. We have 15+ years of experience within the HUBZone Program!

  • All services performed are by Cloveer employees, not outside contractors, like some of our competitors.
  • Our principals (Rick and Monica Otero) worked in their family’s 8(a) Certified business. It was one of the country’s most successful 8(a), high-tech, information technology and electronics concerns. It was recognized for five consecutive years as one of the fastest growing companies in the nation, by Inc. Magazine

4. We won’t waste your time!

  • We pre-qualify all potential clients for our full HUBZone Application Service. We are not interested in wasting your time or ours if you do not qualify.
  • When you ask a question, you will get a straight answer with no double talk.
  • Even if you don’t qualify currently we will identify the workaround to your specific issue(s) so you can apply down the road.

5. We believe in Customer Service!

  • We believe in treating every client with respect they deserve as a small business.
  • Our service agreements guarantee protection of their confidential information.
  • All information provided to us is protected on our secure services and will never be shared with anyone.

Finally. We are the best HUBZone Program consultant that is available on the market. The others just try to emulate us.

Visit the Cloveer HUBZone Website or call us at 813-333-5800 for more information.

Tips to select the right consultant to prepare your 8a, HUBZone or VetBiz Application.

1. Pick up the phone. Call them and speak to the actual person who will be preparing your application. 

You should be able to call them and speak directly to the individual(s) who will be responsible for preparing your application. At Cloveer, you can call and speak to the employee who will be responsible for preparing your application. They will answer any of your questions and let you know whether or not you are eligible to become certified into one of these programs at no cost. Call us at 813-333-5800 to get your questions answered.

2. Don’t choose your consultant solely on their price for services.

The old adage is true. You get what you pay for. If it looks to good too be true, it usually is.

3. Stay away from any consultant that offers you any type of guarantee.

The FAR prohibits any federal consultant to base any fee for their services contingent on certification.

4. Ask as many questions up front as possible. See if they actually know the rules and regulations of the program you want to get certified into. They should be able to answer your eligibility questions quickly and correctly.

Cloveer pre-qualifies all of its potential clients to make sure they meet all of the regulatory requirements.

5. Check the consultants Better Business Bureau report.

If they don’t have a profile established with the BBB, or have negative feedback, this is a sign of potential problems. Cloveer is an A+ Rated BBB business with zero complaints.

6. Ask them for references you can personally speak to and look for a recent track record of success.

Cloveer has real references that are published on our website that you can call and speak to.

7. Look at their website to see if they provide more than just sales information.

Cloveer.com has an extensive FAQ section along with a comprehensive blog on getting certified. We want you to understand as much as possible before making a decision on whether or not to pursue certification.

8.  Make sure that the agreement provided for services to be rendered covers everything.

All services provided by Cloveer are on a fixed price basis so there will be no hidden charges.

For More information on getting your 8a Certified, HUBZone Certified or VETBiz Certified, call us at 813-333-5800 or visit www.cloveer.com

 

Top 5 States with SBA HUBZone Businesses

There are 5,313 active SBA HUBZone Application firms as of October 2015. Below is an infographic 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 MAP

HUBZone MAP

The top five states with HUBZone Certified Firms are:
1. California – 481
2. Virginia – 371
3. Oklahoma – 300
4. Texas – 261
5. Maryland – 237

The top five states with the lowest number of HUBZone Certified firms are:
1. Delaware – 3
2. Rhode Island – 7
3. Vermont – 11
4. Connecticut – 14
5. Maine – 15

This information is provided by Cloveer.com.

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