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New Jersey District OfficeNew Jersey District Office

HUBZone PROGRAM HUBZone PROGRAM UPDATEUPDATE

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What We’ll Be Talking AboutWhat We’ll Be Talking About

Events leading to creation of HUBZoneEvents leading to creation of HUBZone Purpose of the HUBZone ProgramPurpose of the HUBZone Program Qualifications to be certified a HUBZone concernQualifications to be certified a HUBZone concern Current portfolioCurrent portfolio Contract Types (benefits)Contract Types (benefits) HUBZone in New JerseyHUBZone in New Jersey Question & Answer SessionQuestion & Answer Session

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Quick HistoryQuick History In 1996In 1996, U.S. Senator Christopher ‘Kit’ Bond, then , U.S. Senator Christopher ‘Kit’ Bond, then Chairman of the Small Business Committee, crafts Chairman of the Small Business Committee, crafts legislation to link preferences for award of Federal legislation to link preferences for award of Federal contracts to contracts to smallsmall businesses located in businesses located in economically dormant and underserved areas, economically dormant and underserved areas, which he called HUBZones.which he called HUBZones.

Felt that Felt that JOBSJOBS, not more job training, was what , not more job training, was what was needed to promote long-term economic was needed to promote long-term economic viability.viability.

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HUBZone Program Becomes Law, HUBZone Program Becomes Law, Opens Doors Opens Doors

In 1997In 1997, Congress passed and the President signed into , Congress passed and the President signed into law the “Small Business Reauthorization Act of 1997,” law the “Small Business Reauthorization Act of 1997,” which contained HUBZone provision.which contained HUBZone provision.

In 1998In 1998, the U.S. Small Business Administration moves , the U.S. Small Business Administration moves final rules to create HUBZone Program.final rules to create HUBZone Program.

In 1999In 1999, , program certifies on March 22program certifies on March 22nd nd the first the first HUBZone small business concern.HUBZone small business concern.

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Program OverviewProgram Overview

Community-basedCommunity-based

HUBZone Program = EHUBZone Program = E³³

• Employment Employment • Empowerment Empowerment • EnterpriseEnterprise

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Program PurposeProgram Purpose Provide Federal contracting assistance to qualified small Provide Federal contracting assistance to qualified small

business concerns located in historically underutilized business concerns located in historically underutilized business zones (HUBZones) to:business zones (HUBZones) to:

•Increase employment opportunitiesIncrease employment opportunities

•Stimulate capital investment in those areasStimulate capital investment in those areas

•Empower communities through economic Empower communities through economic leveraging and the “multiplier effect.” leveraging and the “multiplier effect.”

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Program DesignProgram Design From the outset, designed as a From the outset, designed as a

virtual program always available virtual program always available at:at: www.sba.gov/hubzone

• Application for CertificationApplication for Certification• Recertification Recertification • Program ExaminationsProgram Examinations

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HUBZone EligibilityHUBZone EligibilityRequirementsRequirements

Size:Size:• Small, by relevant SBA standards.Small, by relevant SBA standards.

Ownership and Control:Ownership and Control: • At least 51% by U.S. citizen(s), Community At least 51% by U.S. citizen(s), Community

Development Corporation, Agriculture Development Corporation, Agriculture Cooperative, Alaska Native Corporation, or Cooperative, Alaska Native Corporation, or Indian tribe. Indian tribe.

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HUBZone Eligibility Requirements, HUBZone Eligibility Requirements, cont’d…cont’d…

Location:Location: • ““Principal Office” must be located in a Principal Office” must be located in a

HUBZone HUBZone (may differ for tribally owned concerns(may differ for tribally owned concerns))..

Employment:Employment:

• At least 35% of employees must reside in a At least 35% of employees must reside in a HUBZone HUBZone (may differ for tribally owned concerns)(may differ for tribally owned concerns)..

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HUBZone Qualified AreasHUBZone Qualified Areas Metropolitan Area Census Tracts :Metropolitan Area Census Tracts : 10,169 10,169 areas areas

• ““Qualified Census Tract” that meets test for Low Income Qualified Census Tract” that meets test for Low Income Housing Tax Credit. (HUD) (Changes with decennial Housing Tax Credit. (HUD) (Changes with decennial census.)census.)

Non-metropolitan Counties:Non-metropolitan Counties: 1,302 counties 1,302 counties

• Median household income is less than 80% of the non-Median household income is less than 80% of the non-metropolitan state level (Census) (Changes with decennial metropolitan state level (Census) (Changes with decennial census.)census.)

• Unemployment rate that is at least 140% of the lower of the Unemployment rate that is at least 140% of the lower of the state-wide or U.S. average (BLS) (Changes annually.)state-wide or U.S. average (BLS) (Changes annually.)

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HUBZone Qualified Areas, cont’d…HUBZone Qualified Areas, cont’d…

Federally recognized Indian Reservations:Federally recognized Indian Reservations: 659 659• Locations include land meeting definition of Indian Country (BIA Locations include land meeting definition of Indian Country (BIA

and IRS) (Change is periodic)and IRS) (Change is periodic)

Difficult Development Areas:Difficult Development Areas: 67 locations 67 locations• ““Difficult Development Area” external to continental U.S. that meets Difficult Development Area” external to continental U.S. that meets

test for Low Income Housing Tax Credit. (HUD) (Changes with test for Low Income Housing Tax Credit. (HUD) (Changes with decennial census.)decennial census.)

Former military base closed by BRAC: Former military base closed by BRAC: 105105• Former military bases closed as a result of Base Realignment and Former military bases closed as a result of Base Realignment and

Closure Act (BRAC). Locations remain HUBZone for five years Closure Act (BRAC). Locations remain HUBZone for five years after date of closing or, if already closed by Dec. 8, 2004, five years after date of closing or, if already closed by Dec. 8, 2004, five years from that date. (Defense) (Changes periodically)from that date. (Defense) (Changes periodically)

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HUBZone ProgramHUBZone ProgramBenefitsBenefits

Set-aside awards Set-aside awards

Sole source awardsSole source awards

Awards through full and open competition after Awards through full and open competition after

application of 10% price evaluation preference application of 10% price evaluation preference

(PEP)(PEP)

Subcontracting Opportunities Subcontracting Opportunities

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Federal Government-wide Federal Government-wide

Prime HUBZone Contracting Awards by Fiscal YearPrime HUBZone Contracting Awards by Fiscal Year

FY 1999FY 1999 Goal - 1%Goal - 1% Actual - not available Actual - not available FY 2000FY 2000 Goal – 1.5% Actual - $663.3 M (.33%)Goal – 1.5% Actual - $663.3 M (.33%) FY 2001FY 2001 Goal – 2.0%Goal – 2.0% Actual - $1.7 B (.72%) Actual - $1.7 B (.72%) FY 2002FY 2002 Goal – 2.5%Goal – 2.5% Actual - $1.7 B (.71%) Actual - $1.7 B (.71%) FY 2003FY 2003 Goal – 3.0%Goal – 3.0% Actual - $3.4 B (1.23%) Actual - $3.4 B (1.23%) FY 2004FY 2004 Goal – 3.0%Goal – 3.0% Actual - $4.8 B (1.59%) Actual - $4.8 B (1.59%) FY 2005FY 2005 Goal – 3.0%Goal – 3.0% Actual - $6.2 B (1.94%) Actual - $6.2 B (1.94%) FY 2006FY 2006 Goal – 3.0%Goal – 3.0% Actual – $7.1 B (2.11%) Actual – $7.1 B (2.11%) FY 2007FY 2007 Goal – 3.0%Goal – 3.0% Actual – $8.5 B (2.24%) Actual – $8.5 B (2.24%)

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The HUBZone ProgramThe HUBZone Programin NEW JERSEYin NEW JERSEY

Number of certified Number of certified HUBZone Firms: 75HUBZone Firms: 75

*(Active CCR firm profiles as of 2/1/2010)*(Active CCR firm profiles as of 2/1/2010)

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NEW JERSEY HUBZONE LOCATIONSNEW JERSEY HUBZONE LOCATIONS

HUBZones are currently located in the following cities & towns in HUBZones are currently located in the following cities & towns in New Jersey. Please be advised that HUBZones are determined by New Jersey. Please be advised that HUBZones are determined by census tracts which have street by street boundaries. For this census tracts which have street by street boundaries. For this reason, we strongly suggest the use of our HUBZone locator reason, we strongly suggest the use of our HUBZone locator system to define the boundaries of each HUBZone.system to define the boundaries of each HUBZone.

The HUBZone locator can be accessed at the SBA web site (The HUBZone locator can be accessed at the SBA web site (www.sba.gov/hubzone).).

COUNTYCOUNTY CITYCITY AtlanticAtlantic Atlantic City, AbseconAtlantic City, Absecon BergenBergen Englewood, Fairview, Ramapough Englewood, Fairview, Ramapough

Indian ReservationIndian Reservation BurlingtonBurlington Wrightstown, Pemberton, Wrightstown, Pemberton,

Rankokus Rankokus Indian ReservationIndian Reservation Cape MayCape May West Wildwood, WildwoodWest Wildwood, Wildwood CamdenCamden Camden, PennsaukenCamden, Pennsauken CumberlandCumberland Bridgetown, Millville, Vineland, Bridgetown, Millville, Vineland,

Nanticoke Lenni Lenape Indian Nanticoke Lenni Lenape Indian Reservation Reservation

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NEW JERSEY HUBZONE LOCATIONSNEW JERSEY HUBZONE LOCATIONS

COUNTYCOUNTY CITYCITY

MorrisMorris Dover, RandolphDover, Randolph MonmouthMonmouth Allenhurst, Asbury Park, Colts Neck, Allenhurst, Asbury Park, Colts Neck,

Eatontown, Howell, Long Branch, Morganville, Neptune, Eatontown, Howell, Long Branch, Morganville, Neptune, Tinton Falls, West Long BranchTinton Falls, West Long Branch

OceanOcean Beachwood, Brick, Dover Twp., Lakehurst, Beachwood, Brick, Dover Twp., Lakehurst, Lakewood, Toms RiverLakewood, Toms River

PassaicPassaic Clifton, Passaic, PatersonClifton, Passaic, Paterson SalemSalem Penns Grove, SalemPenns Grove, Salem SomersetSomerset Bound BrookBound Brook UnionUnion Elizabeth, Plainfield, Hillside, Linden, RoselleElizabeth, Plainfield, Hillside, Linden, Roselle WarrenWarren PhilipsburgPhilipsburg

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NEW JERSEY HUBZONE LOCATIONSNEW JERSEY HUBZONE LOCATIONS

The following areas are no longer designated as The following areas are no longer designated as HUBZones. Previously certified HUBZone firms HUBZones. Previously certified HUBZone firms located in these areas who continue to meet all located in these areas who continue to meet all other eligibility criteria will have their other eligibility criteria will have their certifications "grandfathered" until the results of certifications "grandfathered" until the results of the 2010 census are published.the 2010 census are published.

COUNTYCOUNTY CITYCITY BergenBergen Dumont, Fort LeeDumont, Fort Lee BurlingtonBurlington Mt. HollyMt. Holly EssexEssex Newark (sections)Newark (sections) GloucesterGloucester GlassboroGlassboro UnionUnion Elizabeth (sections)Elizabeth (sections)

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““Rebuilding America's Rebuilding America's Communities, One Small Communities, One Small

Business at a Time "Business at a Time "

The HUBZone ProgramThe HUBZone Program

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Thank YouThank You

Any Questions?Any Questions?

HUBZone Liaison: Sandy GerberHUBZone Liaison: Sandy Gerber

973-645-3729973-645-3729