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Description: A HUBZoneis a geographical location identified and designated by the Small Business Administration (SBA) as an area that is and has been historically underutilized by businesses. SBA uses information and data from multiple federal sources to determine HUBZone designated status. Such federal agencies include the U.S. Bureau of Labor Statistics, Department of Defense, Department of Housing and Urban Development, Bureau of Indian Affairs and the U.S. Census Bureau. The way SBA uses this data to determine HUBZone areas is established by law. The agency does not have the authority to decide, without supporting data that a particular area should or should not be a designated HUBZone. This is an important distinction.The HUBZone program was established by the authority 15 U.S.C. 632(a), as amended in the Small Business Act. Regulations governing the HUBZone program are located in 13 CFR Parts 126.100 to 126.900.There are four types of HUBZone designations. They are: qualified census tract; qualified nonmetropolitan county; qualified Indian reservation; and, qualified base closure area. Qualified Census Tract (QCT): A census tract is a statistical subdivision of counties that may include a few neighborhoods in a city or, in rural areas, may include several towns. Tracts generally have populations that range in size between 1,200 and 8,000 people.The Department of Housing and Urban Development is responsible for designating Qualified Census Tracts or QCTs for purposes of the statutorily established Low-Income Housing Tax Credit program. To qualify under this program, a census tract must either: demonstrate a poverty rate of at least 25 percent; or 50 percent or more of its householders must have incomes below 60 percent of the area median household income. It is important to note, the Low Income Tax Credit program, which is driven by statute, imposes limits on the number of census tracts an area can have. As such, it is possible for a tract to meet one or both of the above criteria, but not be designated as a QCT.Qualified Nonmetropolitan County (QNMC): Only counties in nonmetropolitan areas may be eligible for HUBZone designated status. In order for a nonmetropolitan county to qualify: the median household income in the county must be less than 80% of the nonmetropolitan state median household income, or the unemployment rate in the county must be at least 140% of either the national or state unemployment rate, or the county is classified as a Difficult Development Area, as designated by HUD within Alaska, Hawaii, or any territory or possession of the United States, outside of the 48 contiguous states.Qualified Indian Reservation: Indian lands in areas within the boundaries of an Indian reservation may qualify as a HUBZone area. Trust lands acquired by an Indian reservation or tribe after December 21, 2000, do not qualify as HUBZones, unless they are part of a former Reservation, or they are contiguous to areas that were trust lands prior to December 21, 2000. Qualified Base Closure (QBC): Certain base closure areas may qualify as HUBZone designated areas. A base closure area is defined as the lands within the boundaries of a military installation that was closed. Such an area can be designated as a HUBZone for a period of 5 years, beginning on the official date of the base closure and ending the same date, five years later.HUBZone designations are not static. They change based on a variety of data. Indian lands and base closure areas can change frequently or as necessary. Nonmetropolitan counties are reviewed and can change multiple times a year. Census tracts are updated every five years, when HUD releases a notice to that effect in the federal register. Redesignated Area: Tracts or counties are redesignated for three years after the date which the tract or county ceases to be qualified due to changes in income, unemployment, or poverty data. When a tract or county is redesignated, its status in the HUBZone maps reflects the sunset date of the redesignation. A redesignated area qualifies for a limited time as a HUBZone area. This is an important distinctionSource: U.S. Small Business Administration (2014). Understanding HUBZone Designations. Office of Government Contracting and Business Development. https://www.sba.gov/sites/default/files/hubzone_workbook.pdf2018 NDAA: Changes to the HUBZone ProgramThe HUBZone program is once again undergoing some changes thanks to the 2018 National Defense Authorization Act–but note that some of these changes are not effective until January 1, 2020.These changes include a requirement for an improved online mapping tool, a mandate that HUBZone verifications be processed in 60 days, and more. Here’s a look at some of the most significant HUBZone changes in the 2018 NDAA.Current HUBZone maps are "frozen" until at least January 1, 2020.Source: http://smallgovcon.com/hubzone-program/2018-ndaa-changes-to-the-hubzone-program/
Copyright Text: Prince William County Department of Information Technology (DoIT), Geographic Information Systems (GIS) Division
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