Government Support for Wealth Building Strategies The HUBZone Act and HUBZone Program Implementation A Community Based Program to Stimulate Empowerment, Enterprise, and Employment March 2000

HUBZone History Public Law The HUBZone Act of 1997, as well as the Small Business Reauthorization Act Mandates Federal contracting with qualified small business concerns located in Historically Underutilized Business (HUB) Zones HUBZones are distressed communities, those areas with high unemployment and/or low income –based upon counties in rural areas and census tracts in urban areas –includes Indian reservations

HUBZone Areas

Requirements to be a Qualified HUBZone Business Concern Must be a small business - based upon Standard Industrial Classification (SIC) Code Concern must be owned and controlled only by U.S. citizens The Principal office of the concern must be located in a HUBZone At least 35% of the concern’s employees must reside in a HUBZone

HUBZone Contracting Goals A percentage of the total value of all Federal prime contracts is to be awarded to certified HUBZone Businesses –FY % - $2,000,000,000 –FY % - $3,000,000,000 –FY % - $4,000,000,000 –FY % - $5,000,000,000 –FY % - $6,000,000,000

Contract Awards These are contract awards to procure goods and services from HUBZone areas; they are not grants Prime contracts –“Set aside” awards –Sole source awards –Price evaluation adjustment (PEA) on qualified full and open competitions Subcontracts from “large” Federal contractors

Participants - Federal and Commercial As of FY Federal agencies: Department of AgricultureDepartment of Transportation Department of DefenseDepartment of Veteran’s Affairs Department of EnergyEnvironmental Protection Agency Department of Health & Human ServicesGeneral Services Administration Department of Housing & Urban DevelopmentNational Aeronautics & Space Administration As of FY 2000 –Three additional agencies: Commerce, Justice, and State –Full and open competitions conducted by all agencies require HUBZone Subcontracting plans As of FY 2001 (October 1, 2000), the HUBZone program will apply to all Federal departments and agencies

HUBZone Certification Web-based application at SBA site SBA processing time is 30 days from receipt of a complete package Certified HUBZone Businesses nationwide, as of: April 1, October 1, February 1, March 15, Efforts are currently underway to revise some aspects of the rule

Challenges and Solutions Challenge: The Federal agencies are lagging behind in meeting their goals Solution: Alert Congress Challenge: Many HUBZone residents comprise a “hard-to-employ” workforce Solution: Workforce training/preparedness programs and employment opportunities

Challenge: Most HUBZone area businesses are not knowledgeable of the HUBZone program and how to penetrate the Federal marketplace Solution: Education and technical assistance Challenges and Solutions

Our Solution: Create a D.C. HUB Zone Revitalization Program Center HUBZone Application Assistance Prime and Subcontract Business Plan Development Lead Identification and Development Access to Federal and Local Program Information Access to HUBZone Resident Labor Resources Workforce Development Programs & Educational Institutions Government Support Services  Federal Agencies/Programs  District Agencies/Programs Major Federal Contractors D.C. HUBZone Revitalization Program Center D.C.HUBZone Businesses

Serve as a Knowledge Transfer Facilitator