DATE: October 3, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration; HUBZone Program Improvements

SOURCE: Federal Register, October 3, 2000, Vol. 65, No. 192, page 58963

AGENCIES: Small Business Administration (SBA)

ACTION: Proposed Rule

SYNOPSIS: SBA is proposing to revise its regulations governing the Historically Underutilized Business Zone (HUBZone) Empowerment Contracting Program to add three federal agencies to the list of those that must comply with the HUBZone regulations, and to make improvements to the administration and operation of the HUBZone program.

EDITOR'S NOTE: The SBA's regulations are in Title 13 of the Code of Federal Regulations (CFR). The HUBZone regulations are in Part 126, HUBZone Program, of Title 13.

The Federal Acquisition Regulation (FAR) addresses the HUBZone program in Subpart hubzone@sba.gov.

SUPPLEMENTAL INFORMATION: Title VI of the Small Business Reauthorization Act of 1997 (Public Law 105-135) established the HUBZone program to provide federal contract assistance to qualified small business concerns located in distressed communities. The law established a HUBZone annual contracting goal of 3% of overall prime contracting, which means the HUBZone program could account for about $6 billion a year in federal contracts by Fiscal Year 2003, when the full 3% goal becomes effective.

To participate in the HUBZone program, a small business' principal office must be located in a HUBZone. More than 7,000 urban census tracts and 900 rural counties currently qualify as HUBZones. Also, all federally-recognized Native American reservations qualify.

The SBA published implementing regulations on June 11, 1998, effective September 9, 1998. Since then, SBA has received over 2,000 applications for HUBZone certification. However, SBA has become aware of certain amendments that it believes will clarify the regulations, streamline the operation of the HUBZone program, and ease eligibility requirements that are thought to be overly burdensome to businesses. They are as follows:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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