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15 U.S. Code § 657a. HUBZone program
(a) In general
There is established within the Administration a program (to be known as the HUBZone program) to be carried out by the Administrator to provide for Federal contracting assistance, including promoting economic development in economically distressed areas (as defined in section 636(m)(11)),[1] to qualified HUBZone small business concerns in accordance with this section.
(b) Definitions relating to HUBZonesIn this section:
(1) Historically underutilized business zoneThe terms “historically underutilized business zone” or “HUBZone” mean any area located within 1 or more—
(A)
qualified census tracts;
(B)
qualified nonmetropolitan counties;
(C)
lands within the external boundaries of an Indian reservation;
(D)
redesignated areas;
(E)
base closure areas;
(F)
qualified disaster areas; or
(G)
a Governor-designated covered area.
(2) HUBZone small business concernThe term “HUBZone small business concern” means—
(A)
a small business concern that is at least 51 percent owned and controlled by United States citizens;
(B) a small business concern that is—
(i)
an Alaska Native Corporation owned and controlled by Natives (as determined pursuant to section 1626(e)(1) of title 43); or
(ii)
a direct or indirect subsidiary corporation, joint venture, or partnership of an Alaska Native Corporation qualifying pursuant to section 1626(e)(1) of title 43, if that subsidiary, joint venture, or partnership is owned and controlled by Natives (as determined pursuant to section 1626(e)(2) of title 43);
(C) a small business concern—
(i)
that is wholly owned by one or more Indian tribal governments, or by a corporation that is wholly owned by one or more Indian tribal governments; or
(ii)
that is owned in part by one or more Indian tribal governments, or by a corporation that is wholly owned by one or more Indian tribal governments, if all other owners are either United States citizens or small business concerns;
(D) a small business concern—
(i)
that is wholly owned by one or more Native Hawaiian Organizations (as defined in section 637(a)(15) of this title), or by a corporation that is wholly owned by one or more Native Hawaiian Organizations; or
(ii)
that is owned in part by one or more Native Hawaiian Organizations, or by a corporation that is wholly owned by one or more Native Hawaiian Organizations, if all other owners are either United States citizens or small business concerns;
(E) a small business concern that is—
(i)
wholly owned by a community development corporation that has received financial assistance under part 1 of subchapter A of the Community Economic Development Act of 1981 (42 U.S.C. 9805 et seq.); or
(ii)
owned in part by one or more community development corporations, if all other owners are either United States citizens or small business concerns; or
(F) a small business concern that is—
(i)
a small agricultural cooperative organized or incorporated in the United States;
(ii)
wholly owned by 1 or more small agricultural cooperatives organized or incorporated in the United States; or
(iii)
owned in part by 1 or more small agricultural cooperatives organized or incorporated in the United States, if all owners are small business concerns or United States citizens.
(3) Qualified areas
(A) Qualified census tract
(i) In general
The term “qualified census tract” means a census tract that is covered by the definition of “qualified census tract” in section 42(d)(5)(B)(ii) of title 26 and that is reflected in an online tool prepared by the Administrator described under subsection (d)(7).
(ii) ExceptionFor any metropolitan statistical area in the Commonwealth of Puerto Rico, the term “qualified census tract” has the meaning given that term in section 42(d)(5)(B)(ii) of title 26 as applied without regard to subclause (II) of such section and that is reflected in the online tool described under clause (i), except that this clause shall only apply—
(I)
10 years after the date that the Administrator implements this clause, or
(II)
the date on which the Financial Oversight and Management Board for the Commonwealth of Puerto Rico created by the Puerto Rico Oversight, Management, and Economic Stability Act ceases to exist,
whichever event occurs first.
(B) Qualified nonmetropolitan countyThe term “qualified nonmetropolitan county” means any county that is reflected in the online tool described under subparagraph (A)(i) and—
(i)
that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of title 26) at the time of the most recent census taken for purposes of selecting qualified census tracts under section 42(d)(5)(B)(ii) of title 26; and
(ii) in which—
(I)
the median household income is less than 80 percent of the State median household income, based on a 5-year average of the available data from the Bureau of the Census of the Department of Commerce;
(II)
the unemployment rate is not less than 140 percent of the average unemployment rate for the United States or for the State in which such county is located, whichever is less, based on a 5-year average of the available data from the Secretary of Labor; or
(III)
there is located a difficult development area, as designated by the Secretary of Housing and Urban Development in accordance with section 42(d)(5)(B)(iii) of title 26, within Alaska, Hawaii, or any territory or possession of the United States outside the 48 contiguous States.
(C) Redesignated area
The term “redesignated area” means any census tract that ceases to be qualified under subparagraph (A) and any nonmetropolitan county that ceases to be qualified under subparagraph (B) for a period of 3 years after the date on which the census tract or nonmetropolitan county ceased to be so qualified.
(D) Base closure area
(i) In generalSubject to clause (ii), the term “base closure area” means—
(I) lands within the external boundaries of a military installation that were closed through a privatization process under the authority of—
(aa)
the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of division B of Public Law 101–510; 10 U.S.C. 2687 note);
(bb)
title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note);
(cc)
section 2687 of title 10; or
(dd)
any other provision of law authorizing or directing the Secretary of Defense or the Secretary of a military department to dispose of real property at the military installation for purposes relating to base closures of redevelopment, while retaining the authority to enter into a leaseback of all or a portion of the property for military use;
(II)
the census tract or nonmetropolitan county in which the lands described in subclause (I) are wholly contained;
(III)
a census tract or nonmetropolitan county the boundaries of which intersect the area described in subclause (I); and
(IV)
a census tract or nonmetropolitan county the boundaries of which are contiguous to the area described in subclause (II) or subclause (III).
(ii) Limitation
A census tract or nonmetropolitan county described in clause (i) shall be considered to be a base closure area for a period beginning on the date on which the Administrator designates such census tract or nonmetropolitan county as a base closure area and ending on the date on which the base closure area ceases to be a qualified census tract under subparagraph (A) or a qualified nonmetropolitan county under subparagraph (B) in accordance with the online tool prepared by the Administrator described under subsection (d)(7), except that such period may not be less than 8 years.
(iii) DefinitionsIn this subparagraph:
(I) Census tract
The term “census tract” means a census tract delineated by the United States Bureau of the Census in the most recent decennial census that is not located in a nonmetropolitan county and does not otherwise qualify as a qualified census tract.
(II) Nonmetropolitan county
The term “nonmetropolitan county” means a county that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of title 26) at the time of the most recent census taken for purposes of selecting qualified census tracts and does not otherwise qualify as a qualified nonmetropolitan county.
(E) Qualified disaster area
(i) In general
Subject to clause (ii), the term “qualified disaster area” means any census tract or nonmetropolitan county located in an area where a major disaster has occurred or an area in which a catastrophic incident has occurred if such census tract or nonmetropolitan county ceased to be qualified under subparagraph (A) or (B), as applicable, during the period beginning 5 years before the date on which the President declared the major disaster or the catastrophic incident occurred.
(ii) DurationA census tract or nonmetropolitan county shall be considered to be a qualified disaster area under clause (i) only for the period of time ending on the date the area ceases to be a qualified census tract under subparagraph (A) or a qualified nonmetropolitan county under subparagraph (B), in accordance with the online tool prepared by the Administrator described under subsection (d)(7) and beginning—
(I)
in the case of a major disaster, on the date on which the President declared the major disaster for the area in which the census tract or nonmetropolitan county, as applicable, is located; or
(II)
in the case of a catastrophic incident, on the date on which the catastrophic incident occurred in the area in which the census tract or nonmetropolitan county, as applicable, is located.
(iii) DefinitionsIn this subparagraph:
(I) Major disaster
The term “major disaster” means a major disaster declared by the President under section 5170 of title 42.
(II) Other definitions
The terms “census tract” and “nonmetropolitan county” have the meanings given such terms in subparagraph (D)(iii).
(F) Governor-designated covered area
(i) In general
A “Governor-designated covered area” means a covered area that the Administrator has designated by approving a petition described under clause (ii).
(ii) PetitionFor a covered area to receive a designation as a Governor-designated covered area, the Governor of the State in which the covered area is wholly contained shall include such covered area in a petition to the Administrator requesting such a designation. In reviewing a request for designation included in such a petition, the Administrator may consider—
(I)
the potential for job creation and investment in the covered area;
(II)
the demonstrated interest of small business concerns in the covered area to be designated as a Governor-designated covered area;
(III)
how State and local government officials have incorporated the covered area into an economic development strategy; and
(IV)
if the covered area was a HUBZone before becoming the subject of the petition, the impact on the covered area if the Administrator did not approve the petition.
(iii) Limitations
Each calendar year, a Governor may submit not more than 1 petition described under clause (ii). Such petition shall include all covered areas in a State for which the Governor seeks designation as a Governor-designated covered area, except that the total number of covered areas included in such petition may not exceed 10 percent of the total number of covered areas in the State.
(iv) Certification
If the Administrator grants a petition described under clause (ii), the Governor of the Governor-designated covered area shall, not less frequently than annually, submit data to the Administrator certifying that each Governor-designated covered area continues to meet the requirements of clause (v)(I).
(v) DefinitionsIn this subparagraph:
(I) Covered areaThe term “covered area” means an area in a State—
(aa)
that is located outside of an urbanized area, as determined by the Bureau of the Census;
(bb)
with a population of not more than 50,000; and
(cc)
for which the average unemployment rate is not less than 120 percent of the average unemployment rate of the United States or of the State in which the covered area is located, whichever is less, based on the most recent data available from the American Community Survey conducted by the Bureau of the Census.
(II) Governor
The term “Governor” means the chief executive of a State.
(III) State
The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.