Government contacting can be a lucrative, yet hard-to-get-into field with thick layers of bureaucracy to navigate, new terms to understand, and lengthy applications to complete. Yet if you are serious about becoming a small business that secures sizable government contracts, it is worth your while to take a look at the Small Business Administration (SBA)’s HUBZone program as well as other small business funding programs.
Though it does require some patience and diligence to participate, the HUBZone Program can pay off big for small business owners who qualify. The federal government’s program aims to bolster enterprise and employment in historically underutilized communities, urban and rural alike. Geographic areas or zones where business growth has been fairly limited may be recognized by the program.
Get Help from Uncle Sam with Government Contract Financing Opportunities
In addition to small business funding advantages that may come as working with SBA programs, HUBZone certified business get significant benefits with regard to government financing specifically contract bidding. Take a look at the advantages:
- HUBZone certified businesses are awarded sole source (aka non-bid contracts) as well as limited pool competitive bid contracts. This means your business will have a very high chance of landing a government contract. Factoring in all other considerations, such as lengthy paperwork and processing time, many feel the payoff is well worth the efforts.
- Organizations that are HUBZone certified receive preferential bidding treatment with competitive or fully open bidding situations. They are able to secure a 10 percent price evaluation preference in these contract competitions as well as subcontracting opportunities.
- Businesses with a HUBZone certification are slated to receive a total of three percent of all contracting dollars or about $10 billion annually. That type of government financing or assistance is no small matter.
Small Business Funding Program Meant as a Temporary Assistance Tool
The end-goal of the HUBZone Program is to create a positive ripple effect for the HUB Zone neighborhood, its economy and its residents. The drawback is that the government contract financing program has the possibility of becoming victims of its own success. That is, some communities have experienced such victory from this Small Business Funding source that they have lost their HUBZone status as a result.