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.

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.

How to understand and interpret the HUBZone Application Submission Timeline

Below is the typical HUBZone Application timeline including how to interpret any messages you receive from the SBA after submitting your HUBZone Application.

Step Message From SBA Details Length of Time
Application Submitted Your Application has been submitted, but not authorized for processing. You should receive and email Nominal. As long as it takes for you to check your email and authorize the application.
Received You authorized your HUBZone Application, but is not complete until SBA requests and receives all supporting documents. Do not send any supporting documents prior to the SBA’s formal request. After you receive the SBA’s formal request, you have 10 business days to submit all of the requested documents. If you need an extension, you can email hubzonedocuments@sba.gov. Once the SBA receives your supporting documents, your HUBZone case will be assigned to a SBA reviewer. SBA may decline your application if any of the supporting documents are not received on or before the submission date. The day that you authorized the HUBZone application is your electronic verification date. This is the date that all of your supporting documents must cover. Typically 7-14 days.
On Hold Documents Your application is on hold awaiting additional information or documentation. After you submit the supporting documents, your application status may still show this message until your application is assigned to a SBA reviewer Typically 1-4 weeks.
First Level Review Your application has been assigned to an SBA analyst and is under first level review. Your first level reviewer may or may not request additional documentation from you. If additional documentation is required, your status may reverse back to On Hold Documents Typically 3-5 weeks.
Second Level Review Your application is under second level review. The first level review is complete and is being reviewed by a second set of eyes. Typically 1-3 weeks.
Final Review Your application is under final review. Final review will end with a final agency decision Typically 2-4 weeks.
Final Determination
(One or the other will occur)
Your application has been declined. You can view the details in your online correspondence history. If your firm is declined, you may reapply after 90 days. There is no reconsideration of HUBZone Applications. The decision to approve or decline is the final agency decision Complete – Determination rendered
Your application has been approved. You can view the details in your online correspondence history. Congratulations.

Special Statuses not listed above

Step Message From SBA Details Length of Time
Size Review Your application was forwarded to SBA’s Area Size Office for additional review. Some HUBZone Applications require a review by a SBA size specialist. Additional information may be requested by the SBA size Specialist. Varies
Legal Review Your application was forwarded to SBA’s Office of General Counsel for a legal review. Some HUBZone Application require a review by an SBA attorney. Additional information may be requested by the SBA. Varies
Withdrawn Your application has been withdrawn. You may reapply at any time. Complete
No Authorization Received – Withdrawn Your application was automatically withdrawn because no one from your firm authorized it for processing. You failed to follow the Received Step above. Complete
System Rejected Your application was rejected because according to your responses in the online application, your firm does not meet the HUBZone Eligibility requirements. Check your responses within your online application Complete

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 as 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.

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.