§ 657a.
(b)
Definitions relating to HUBZones
In this section:
(1)
Historically underutilized business zone
The terms “historically underutilized business zone” or “HUBZone” mean any area located within 1 or more—
(A)
qualified census tracts;
(B)
qualified nonmetropolitan counties;
(C)
lands within the external boundaries of an Indian reservation;
(F)
qualified disaster areas; or
(G)
a Governor-designated covered area.
(2)
HUBZone small business concern
The term “HUBZone small business concern” means—
(A)
a small business concern that is at least 51 percent owned and controlled by United States citizens;
(B)
a small business concern that is—
(ii)
a direct or indirect subsidiary corporation, joint venture, or partnership of an Alaska Native Corporation qualifying pursuant to
section 1626(e)(1) of title 43, if that subsidiary, joint venture, or partnership is owned and controlled by Natives (as determined pursuant to
section 1626(e)(2) of title 43);
(C)
a small business concern—
(i)
that is wholly owned by one or more Indian tribal governments, or by a corporation that is wholly owned by one or more Indian tribal governments; or
(ii)
that is owned in part by one or more Indian tribal governments, or by a corporation that is wholly owned by one or more Indian tribal governments, if all other owners are either United States citizens or small business concerns;
(D)
a small business concern—
(i)
that is wholly owned by one or more Native Hawaiian Organizations (as defined in
section 637(a)(15) of this title), or by a corporation that is wholly owned by one or more Native Hawaiian Organizations; or
(ii)
that is owned in part by one or more Native Hawaiian Organizations, or by a corporation that is wholly owned by one or more Native Hawaiian Organizations, if all other owners are either United States citizens or small business concerns;
(E)
a small business concern that is—
(i)
wholly owned by a community development corporation that has received financial assistance under part 1 of subchapter A of the Community Economic Development Act of 1981 (
42 U.S.C. 9805 et seq.); or
(ii)
owned in part by one or more community development corporations, if all other owners are either United States citizens or small business concerns; or
(F)
a small business concern that is—
(i)
a small agricultural cooperative organized or incorporated in the United States;
(ii)
wholly owned by 1 or more small agricultural cooperatives organized or incorporated in the United States; or
(iii)
owned in part by 1 or more small agricultural cooperatives organized or incorporated in the United States, if all owners are small business concerns or United States citizens.
(3)
Qualified areas
(A)
Qualified census tract
(ii)
Exception
For any metropolitan statistical area in the Commonwealth of Puerto Rico, the term “qualified census tract” has the meaning given that term in
section 42(d)(5)(B)(ii) of title 26 as applied without regard to subclause (II) of such section and that is reflected in the online tool described under clause (i), except that this clause shall only apply—
(I)
10 years after the date that the Administrator implements this clause, or
(II)
the date on which the Financial Oversight and Management Board for the Commonwealth of Puerto Rico created by the Puerto Rico Oversight, Management, and Economic Stability Act ceases to exist,
whichever event occurs first.
(B)
Qualified nonmetropolitan county
The term “qualified nonmetropolitan county” means any county that is reflected in the online tool described under subparagraph (A)(i) and—
(ii)
in which—
(I)
the median household income is less than 80 percent of the State median household income, based on a 5-year average of the available data from the Bureau of the Census of the Department of Commerce;
(II)
the unemployment rate is not less than 140 percent of the average unemployment rate for the United States or for the State in which such county is located, whichever is less, based on a 5-year average of the available data from the Secretary of Labor; or
(III)
there is located a difficult development area, as designated by the Secretary of Housing and Urban Development in accordance with
section 42(d)(5)(B)(iii) of title 26, within Alaska, Hawaii, or any territory or possession of the United States outside the 48 contiguous States.
(D)
Base closure area
(i)
In general
Subject to clause (ii), the term “base closure area” means—
(I)
lands within the external boundaries of a military installation that were closed through a privatization process under the authority of—
(aa)
the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of division B of
[Public Law 101–510];
10 U.S.C. 2687 note);
(bb)
title II of the Defense Authorization Amendments and Base Closure and Realignment Act (
;
(cc)
(dd)
any other provision of law authorizing or directing the Secretary of Defense or the Secretary of a military department to dispose of real property at the military installation for purposes relating to base closures of redevelopment, while retaining the authority to enter into a leaseback of all or a portion of the property for military use;
(II)
the census tract or nonmetropolitan county in which the lands described in subclause (I) are wholly contained;
(III)
a census tract or nonmetropolitan county the boundaries of which intersect the area described in subclause (I); and
(IV)
a census tract or nonmetropolitan county the boundaries of which are contiguous to the area described in subclause (II) or subclause (III).
(iii)
Definitions
In this subparagraph:
(I)
Census tract
(II)
Nonmetropolitan county
(E)
Qualified disaster area
(ii)
Duration
A census tract or nonmetropolitan county shall be considered to be a qualified disaster area under clause (i) only for the period of time ending on the date the area ceases to be a qualified census tract under subparagraph (A) or a qualified nonmetropolitan county under subparagraph (B), in accordance with the online tool prepared by the Administrator described under subsection (d)(7) and beginning—
(I)
in the case of a major disaster, on the date on which the President declared the major disaster for the area in which the census tract or nonmetropolitan county, as applicable, is located; or
(II)
in the case of a catastrophic incident, on the date on which the catastrophic incident occurred in the area in which the census tract or nonmetropolitan county, as applicable, is located.
(iii)
Definitions
In this subparagraph:
(I)
Major disaster
(II)
Other definitions
(F)
Governor-designated covered area
(ii)
Petition
For a covered area to receive a designation as a Governor-designated covered area, the Governor of the State in which the covered area is wholly contained shall include such covered area in a petition to the Administrator requesting such a designation. In reviewing a request for designation included in such a petition, the Administrator may consider—
(I)
the potential for job creation and investment in the covered area;
(II)
the demonstrated interest of small business concerns in the covered area to be designated as a Governor-designated covered area;
(III)
how State and local government officials have incorporated the covered area into an economic development strategy; and
(IV)
if the covered area was a HUBZone before becoming the subject of the petition, the impact on the covered area if the Administrator did not approve the petition.
(v)
Definitions
In this subparagraph:
(I)
Covered area
The term “covered area” means an area in a State—
(aa)
that is located outside of an urbanized area, as determined by the Bureau of the Census;
(bb)
with a population of not more than 50,000; and
(cc)
for which the average unemployment rate is not less than 120 percent of the average unemployment rate of the United States or of the State in which the covered area is located, whichever is less, based on the most recent data available from the American Community Survey conducted by the Bureau of the Census.
(II)
Governor
(III)
State
(4)
Qualified HUBZone small business concern
(5)
Native American small business concerns
(A)
Alaska Native Corporation
(B)
Alaska Native Village
(C)
Indian reservation
The term “Indian reservation”—
(i)
(I)
any lands that are located within a State in which a tribe did not exercise governmental jurisdiction on December 21, 2000, unless that tribe is recognized after December 21, 2000, by either an Act of Congress or pursuant to regulations of the Secretary of the Interior for the administrative recognition that an Indian group exists as an Indian tribe (part 83 of title 25, Code of Federal Regulations); and
(II)
lands taken into trust or acquired by an Indian tribe after December 21, 2000, if such lands are not located within the external boundaries of an Indian reservation or former reservation or are not contiguous to the lands held in trust or restricted status on December 21, 2000; and
(ii)
in the State of Oklahoma, means lands that—
(I)
are within the jurisdictional areas of an Oklahoma Indian tribe (as determined by the Secretary of the Interior); and
(II)
are recognized by the Secretary of the Interior as eligible for trust land status under part 151 of title 25, Code of Federal Regulations (as in effect on December 21, 2000).
(6)
Agricultural commodity
(d)
Eligibility requirements; enforcement
(1)
Certification
In order to be eligible for certification by the Administrator as a qualified HUBZone small business concern, a HUBZone small business concern shall submit documentation to the Administrator stating that—
(A)
at the time of certification and at each examination conducted pursuant to paragraph (4), the principal office of the concern is located in a HUBZone and not fewer than 35 percent of its employees reside in a HUBZone;
(B)
the concern will attempt to maintain the applicable employment percentage under subparagraph (A) during the performance of any contract awarded to such concern on the basis of a preference provided under subsection (c); and
(C)
the concern will ensure that the requirements of
section 657s of this title are satisfied with respect to any subcontract entered into by such concern pursuant to a contract awarded under this section.
(2)
Verification
In carrying out this section, the Administrator shall establish procedures relating to—
(A)
the filing, investigation, and disposition by the Administration of any challenge to the eligibility of a HUBZone small business concern to receive assistance under this section (including a challenge, filed by an interested party, relating to the veracity of documentation provided to the Administration by such a concern under paragraph (1)); and
(B)
verification by the Administrator of the accuracy of any documentation provided by a HUBZone small business concern under paragraph (1).
(6)
Loss of certification
(7)
HUBZone online tool
(A)
In general
The Administrator shall develop a publicly accessible online tool that depicts HUBZones. Such online tool shall be updated—
(i)
with respect to HUBZones described under subparagraphs (A) and (B) of subsection (b)(3), beginning on January 1, 2020, and every 5 years thereafter;
(ii)
with respect to a HUBZone described under subsection (b)(3)(C), immediately after the area becomes, or ceases to be, a redesignated area; and
(iii)
with respect to HUBZones described under subparagraphs (D), (E), and (F) of subsection (b)(3), immediately after an area is designated as a base closure area, qualified disaster area, or Governor-designated covered area, respectively.
(C)
Notification of update
(8)
List of qualified HUBZone small business concerns
The Administrator shall establish and publicly maintain on the internet a list of qualified HUBZone small business concerns that shall—
(A)
to the extent practicable, include the name, address, and type of business with respect to such concern;
(B)
be updated by the Administrator not less than annually; and
(C)
be provided upon request to any Federal agency or other entity.
([Pub. L. 85–536, § 2[31]], as added [Pub. L. 105–135, title VI, § 602(b)(1)(B)], Dec. 2, 1997, [111 Stat. 2629]; amended [Pub. L. 106–554, § 1(a)(9) [title V, § 503(b), title VI, § 612(a)]], Dec. 21, 2000, [114 Stat. 2763], 2763A–695, 2763A–699; [Pub. L. 108–447, div. K, title I], §§ 153, 154, Dec. 8, 2004, [118 Stat. 3458]; [Pub. L. 111–240, title I, § 1347(b)(1)], (c), Sept. 27, 2010, [124 Stat. 2547]; [Pub. L. 114–92, div. A, title VIII, § 866(c)], Nov. 25, 2015, [129 Stat. 932]; [Pub. L. 115–91, div. A, title XVII, § 1701(a)(1)], (2), (b)–(e), (g), (h), Dec. 12, 2017, [131 Stat. 1795–1798], 1800; [Pub. L. 116–283, div. A, title VIII, § 864(2)], Jan. 1, 2021, [134 Stat. 3784].)