The term HUB-Zone is much abused in public procurement. Many contracts contain restrictions, which the company into one of these areas, trading limits

If you are new to the game, he's just not how your company is a region considered to HUB-zone, or if your business is eligible.

So ... What is a Hub-Zone?

Small Business Administration (SBA) is not always congested business district (often referred to as the area of the center) program in 1997, when Congress Small Business Act, which enacted Empowerment HUB-zone rules. SBA determines the action to serve, pearl necklace, keeping a list of qualified contractors for federal agencies. Certification in these areas, as a center for businesses in the area of the following requirements:

? The company small business size standards of North American Classification (NAICS) basis.
? At least 51% of businesses owned and controlled by U.S. citizens.
? Director of a company where most employees work (without a contract sites) must be located in a HUB Zone certified.
? At least 35% of the company's employees must live in a HUB Zone.

The main purpose of SBA HUB Zone program is to promote economic growth and create jobs by offering them the opportunity to get contracts of the Federal Republic. SBA reports to Congress as he has more opportunities legislation on employment in these areas. According to information from the site of SBA in the light of how busy he must be at least one of the following:

? criteria for qualified census tracts (regions are likely to change every 10 years, census)
? Qualified non-metropolitan counties, the average household income is less than 80 percent of state median family income or with an unemployment rate of 140% or more above the national average.
? federal lands in the reserve is recognized.

There are many benefits designed to help businesses in the area of HUB and all applications are given to help these special contracts the federal government. For many contracts, must be at least $ 100.000, set aside for small businesses that qualify as an end to center field. He can single source contracts in the area, but the value must be greater than $ 100.000, but less than $ 3 million (or $ 5.000.000 for the preparation of contracts). It may just seem like a decent advantage, HUB Zone small businesses will get what is known as "assessment of prices by 10%." This means that the proposal HUB Zone company on the project (on the basis of prices) n stopped 10% lower than estimated - as long as their price is not more than 10% more than non-HUB Zone small businesses, they earn .

In addition, the advantages mentioned above, there are still many opportunities for small businesses in these areas. Another example is that for large companies, the subcontractor bids to win, pearl bracelet, they must have committed at least HUB Zone subcontractors to complete the project. In addition, these companies can ensure higher than the others, tax credits, tax benefits and investment bonds taxable investments.