Vermont businesses can qualify for advantages in the federal HUBZone law more easily as a result of legislation signed by President Bush on December 7. The HUBzone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997.
The program falls under the auspices of the U.S. Small Business Administration.
Designated HUBZones in Vermont include parts of Burlington's North end and the Pine Street area, the northwest section of Rutland City, part of St. Albans, and all of Lamoille, Caledonia, Essex and Orleans counties.
Among the benefits to HUBZone qualified businesses, large business federal contractors must include a HUBZone subcontracting goal in all contracts. In addition, preference can be given to HUBZone eligible businesses to receive federal contracts directly.
Eligible HUBZone firms can also qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.
HUBZones in Vermont were in danger of losing their status, but under the new legislation they are effectively "grandfathered" into the program until the results of the next decennial census in 2010. The new law also loosened the ownership requirement so that 51% of the business must be owned by a U.S. citizen.
The definition was also broadened to include agricultural cooperatives operating as small businesses to obtain HUBZone status.
"This new law also makes it easier for companies not previously eligible to qualify," said Greg Maguire, Director of the Government Marketing Assistance Center of the Vermont Department of Economic Development. "Our staff is ready and willing to sit down with any Vermont business seeking to learn more about how they can take advantage of HUBZone."
A workshop on "HUBZone Program Updates" followed by a government contracting matchmaking session will be held in Boston on March 9. Reservations and information from Anna Outerbridge at 617-565-8510 or email anna.outerbridge@sba.gov . The Government Marketing Assistance Center provides free technical assistance to Vermont businesses seeking to do business with the state and federal government.
For more information on HUBZone contracting program, contact Greg Maguire at 802-828-5237 or email greg@thinkvermont.com .
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