Two bills are working their way through the legislative process to make a significant change to the HUBZone program.

Sen. David Vitter (R-La), chair of the Senate Small Business Committee, has introduced legislation that extends HUBZone redesignation status from three years to seven years. His legislation also enables state governors to petition for HUBZone status for specific areas.

On the House side, Rep. John Delaney (D-Md.) introduced “the Delaney HUBZone amendment” to H.R. 5485, the Financial Services and General Government Appropriations Act for Fiscal Year 2017, one of the key pieces of legislation to be enacted each year. It only covers redesignation extensions.

When geographic areas are removed from HUBZone designation, companies that are currently HUBZone-certified in that area remain eligible for the program for three years. This short period discourages companies from participating in the program since it often takes a year or more to win the first contract.

In its June newsletter PilieroMazza noted that “hard data and anecdotal evidence indicate that, to reach its full potential, the HUBZone Program needs to be simpler and more business friendly.”

More information: Senate bill S.2838: https://goo.gl/e2DBHP
House bill H.R. 5485: https://goo.gl/55O1Gp
Delaney amendment: http://goo.gl/mvUe3E