HUBZone program expansion

The SBA has announced the expansion of HUBZone, a program that provides small businesses in low-income communities that hire low-income residents opportunities to compete in the federal marketplace.

The announcement makes Illinois the first state to have the newly created Governor-Designated Covered HUBZones. Under the new HUBZone rule, a governor may submit one petition per year requesting that SBA designate certain qualifying areas, including Opportunity Zones as Governor-Designated Covered Areas. In reviewing a request for designation included in the petition, the Administrator may consider how the selections meet the objectives of the state’s economic development strategies. The newly designated areas will be added to the HUBZone map as “Governor-Designated Covered Areas.”

To be eligible for this program, communities must have a population of 50,000 or fewer, an average unemployment rate at least 120 percent of the average unemployment rate for the U.S. or state (whichever is lower), and be located outside of an urbanized area.