My firm has been HUBZone certified since 2023, and we've won a few federal contracts, including an 8(a) sole-source award for IT staffing under NAICS 541519. We have a recompete coming up in October 2026, and I am concerned about maintaining our HUBZone status. We recently had some employee turnover. I know that at least 35 percent of a concern's employees must qualify as HUBZone resident employees. Our principal office is in a HUBZone, so that's not an issue. How do I ensure we meet the 35% resident employee requirement by October 2026? What process does the SBA use to verify this after initial certification?
How do I ensure my HUBZone certification remains active in October 2026 with employee changes?
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You ensure your HUBZone certification remains active by continuously monitoring your employee roster to meet the 35% resident employee requirement, especially as your recompete approaches. The SBA verifies this through an annual review process and can conduct program examinations or status protests. Your firm must maintain that at least 35 percent of its employees qualify as HUBZone resident employees (13 CFR 126.200(d)(1)). This is not a one-time check; it's a requirement you must meet throughout your participation in the program. You should regularly review your employee addresses and confirm their residency status within designated HUBZone areas. The SBA can conduct program examinations at any time to confirm your eligibility, including your employee residency percentage. If your employee numbers fluctuate, you may need to adjust hiring to ensure you stay above that 35% threshold.