SBA Extends Freeze on HUBZone Mapping Providing Additional 1.5 Years
Good news for HUBZone companies! HUBZones officially have more time to plan for the unfreezing of the HUBZone maps. In the first week of May, the SBA announced that they are extending the freeze on HUBZone maps from December 21, 2021 to June 30th, 2023, giving small businesses nearly a year and a half longer to prepare for the re-designation of HUBZone areas. This final rule will go into effect on June 21, 2021.
The SBA originally decided to freeze the current HUBZone maps to allow for the results of the 2020 Census to be considered when re-assessing HUBZone designated areas, as stated in the National Defense Authorization Act for Fiscal Year 2018. This would give HUBZone certified firms more time to plan in the face of potentially losing their HUBzone designation.
However in their direct final rule on the matter, the SBA stated that they have “learned that the data necessary to update the HUBZone map to reflect the 2020 census results will not be available to SBA until December 2022,” most likely due to the ongoing COVID-19 pandemic. By extending the deadline, the SBA is giving itself enough time to “process the data, update the HUBZone map, and provide adequate notice to the HUBZone small business community.”
This extension is a breath of fresh air for those HUBZone companies that potentially faced losing their HUBZone designation at the end of the year. Now, even companies whose principal offices are situated in redesignated areas get to keep their HUBZone certifications until 2023.
This is great for two reasons:
This gives affected firms an additional year and half to plan their next course of action.
This allows time for 2020 Census data to be considered means that it’s possible for currently redesignated areas to come back into the HUBZone program by the time 2023 rolls around.
The SBA’s decision to extend the timeline of the HUBZone map reassessment temporarily takes the pressure off of firms from making drastic office space decisions. In the meantime, take a breath and set your sights on June 30th, 2023.