The Historically Underutilized Business (HUB) Program was created to promote full and equal procurement opportunities for small, minority- and women-owned businesses. Companies interested in doing business with the state are encouraged to become HUB certified. This is accomplished by completing an application and submitting it to theTexas Comptroller of Public Accounts(CPA). Once approved, the company is considered “certified” and agencies using them on contracts receive credit toward meeting established HUB goals. The HUB Program is a state level program required by law and managed by the CPA.
In accordance with Chapter 2161 of the Texas Government Code, State agencies, including institutions of higher education, shall make a good faith effort to utilize HUBs in state contracts, including contracts for construction, services, and commodities.
A “Historically Underutilized Business”…
- is a for-profit entity that has not exceeded the size standards prescribed by34TAC§20.23, and has its principal place of business in Texas, and
- is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman and/or Service Disabled Veteran, who resides in Texas and actively participates in the control, operations and management of the entity’s affairs.
Benefits of HUB Certification
- Business is registered on the Comptroller’s web-basedHUB Directory. State agencies use the HUB Directory in conjunction with the Comptroller’s Centralized Master Bidders List (CMBL)to solicit bids from certified HUBs for state purchasing and public works contracts. Prime contractors also use the HUB Directory to identify HUBs to whom they will send notification of their subcontracting opportunities.
- Increased exposure to the general public, as well as, other entities who have a supplier diversity program and are searching for minority and woman-owned businesses.
- Certified HUBs are included in the HUB directory that is maintained by the CPA which is accessed daily by state agencies searching for certified HUBs. Certification does not guarantee the award of contracts to HUB businesses, but it does increase their visibility within the state contract/procurement process.
For more information regarding the HUB program and certification, go to The Window on State Government, Texas Comptroller of Public Accounts webpage, or contact CPA by phone at (512) 463-5872.
U.S. Small Business Administration HUBZone Program
TheHistorically Underutilized Business Zones(HUBZone) program was enacted into law as part of theSmall Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences.
SBA’s HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.
How the HUBZone Program Works
Similar to its The SBA regulates and implements the HUBZone program by determining which businesses are eligible to receive HUBZone contracts and maintaining a list of qualified HUBZone small businesses that federal agencies can use to locate vendors. HUBZone-certified companies benefit from competitive and sole source contracting, 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns.
Eligibility for HUBZone
- It must be a small business by SBA standards
- It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe
- Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act
- At least 35% of its employees must reside in a HUBZone.
In San Patricio County, the city of Mathis qualifies as a HUBZone qualified census tract, and the city of Odem is labeled as a re-designated tract area