A Historically Underutilized Business Zone (HUBZone) is an economically distressed area as determined by the Small Business Administration (SBA), based on income and unemployment data. Nationally, HUBZone areas include:
- 7,000 urban census tracts
- 900 rural counties
- Lands within the boundaries of an Indian Reservation
To be eligible for the HUBZone program, a small business must be:
- A small business based on the North American Industry Classification System (NAICS) size standards; and
- Located in a HUBZone; and
- Wholly owned and controlled by U.S. citizens; and
- At least 35 percent of its employees must reside in a HUBZone.
Determinations of eligibility for the federal HUBZone program are made by the SBA.