Another Big Change to the HUBZone Program

It’s been a great summer so far for HUBZone firms! Last month, the SBA announced a new expansion to the HUBZone small business program, entitled the Governor-Designated Covered HUBZones. This is the second sizable win for HUBZone firms this summer, following the SBA’s announcement that they would extend their HUBZone map ‘freeze’ until 2023 (which you can read about here).

The new HUBZones rule will allow state governors to submit one petition to SBA each year requesting that certain qualifying opportunity zones be added to HUBZone maps as “Governor-Designed Covered Areas.” In order to be eligible, the areas in question must have a population of 50,000 or fewer, be located outside of a metropolitan / urban area, and possess an average unemployment rate of at least 120 percent of the average national or state-specific unemployment rate, whichever is lowest.

Illinois is the first state to adopt the new Governor-Designated Covered HUBZones, which extends HUBZone privileges to five additional counties within the state. “This expansion of HUBZone areas in Illinois is a big step in bringing rural and underserved communities into a national network of small businesses with access to valuable support resources and contracting programs to better leverage the federal marketplace,” said SBA Administrator Isabella Casillas Guzman.

“Illinois is thrilled to receive approval by the SBA for our Governor-Designated Covered HUBZones, which will help more of our small, rural businesses grow and compete for lucrative federal contracts,” said Illinois Governor JB Pritzker. “This latest HUBZones designation will build on our ongoing work to ensure that Illinois communities across the board have access to programs that will help them grow revenues, increase jobs, and in turn, drive investment toward the communities where it’s most needed.”