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SBA

RIN: 3245-AF31

Publication ID: Fall 2008

Title: Amendments to the HUBZone Program
Abstract: This rule implements statutory amendments of the Small Business Reauthorization and Manufacturing Assistance Act of 2004, subtitle E, HUBZone Program (Reauthorization Act), and makes SBA regulations consistent with the changes in law. The purpose of the HUBZone program is to provide Federal contracting assistance for qualified small business concerns (SBCs) located in historically underutilized business zones, or HUBZones, in an effort to promote economic development and employment opportunities in those areas. To receive SBA certification as a qualified HUBZone SBC under current SBA regulations, an SBC must show: (1) It is exclusively owned and controlled by persons who are U.S. citizens; (2) it has a principal office in a HUBZone; (3) at least 35 percent of its employees reside in a HUBZone; and (4) the SBC must certify that it will attempt to maintain that percentage during performance of the HUBZone contract and that it will comply with certain performance requirements of the HUBZone contract. SBA designates areas as HUBZones using data from the U.S. Census Bureau and the Department of Labor in accordance with law. Among other things, the Reauthorization Act amended eligibility requirements for SBC certification under the Small Business Act and made changes relating to HUBZone designations. These amendments became law on December 8, 2004, and took effect immediately upon enactment. Accordingly, this rule revises 13 CFR part 126 to conform SBA regulations to various amendments under the Reauthorization Act. This rule: (1) Authorizes HUBZone firms to be at least 51 percent owned and controlled by U.S. citizens; (2) amends the definition of the term "HUBZone small business concern" to include small agricultural cooperatives organized and incorporated in the U.S.; (3) designates base closure areas that have undergone final closure as qualified HUBZones for a period of 5 years; (4) amends the definition of a "qualified non-metropolitan county" to allow for a comparison of the county's unemployment rate to either the Statewide average or the national average, whichever is less; and (5) extends the redesignation period for HUBZone areas through the release of the 2010 census data. This rule amends the HUBZone price preference for agricultural commodities purchased for export operations through international food aid programs by providing a 5 percent evaluation preference on 20 percent of the contract.
Agency: Small Business Administration(SBA)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 13 CFR 126
Legal Authority: 15 USC 632 (p), 657a (b) (d)

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Interim Final Rule	08/30/2005	70 FR 51243
Interim Final Rule Comment Period End	10/31/2005
Final Action	07/00/2009

Additional Information: Comments received by the 10/31/2005 deadline resulted in the Agency considering a revision to 126.607 to reflect a General Services Administration concern that the published rule was overly broad. Publication of the revision will follow internal SBA review of proposed text.
Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal, Tribal
Small Entities Affected: Businesses, Governmental Jurisdictions, Organizations	Federalism: No
Included in the Regulatory Plan: No
Public Comment URL: www.regulations.gov
RIN Data Printed in the FR: No
Agency Contact: Mariana Pardo Director, Office of HUBZone Small Business Administration 409 Third Street SW, Washington, DC 20416 Phone:202 205-2985 Fax:202 481-2675 Email: mariana.pardo@sba.gov