Darshan Hiranandani (Son of Niranjan Hiranandani).pdf
HUBZone Eligibility
1. HUBZONE CERTIFICATION ARE YOU ELIGIBLE
A video to assist in determining whether you are eligible for
HUBZONE Certification.
2. HUBZONE Getting Started
ELIGIBILITY Step 1 – Confirming your HUBZONE Eligibility
1. Your business concern's principal office must be located in a
Do you meet the 5 qualified SBA designated HUBZONE.
basic HUBZONE Principal office means the location
eligibility where the greatest number of the
business concern's employees at
requirements? any one location perform their
work.
Requirement #1 For those business concern’s whose
primary industry is service or
construction, the determination of
To Verify: principal office excludes the
http://map.sba.gov/hubzone/maps/ business concern's employees
who perform the majority of their
work at job-site locations to fulfill
specific contract obligations.
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
3. HUBZONE Getting Started
ELIGIBILITY Step 1 – Confirming your HUBZONE Eligibility
Do you meet the 5
basic HUBZONE
eligibility
requirements?
Requirement #1
To Verify:
http://map.sba.gov/hubzone/maps/
4. HUBZONE Getting Started
ELIGIBILITY Step 1 – Confirming your HUBZONE Eligibility
2. Your business concern must be at least 51% unconditionally
Do you meet the 5 and directly owned and controlled by persons who are US
citizens.
basic HUBZONE Unconditionally and directly
eligibility owned means directly owning at
least 51% of the business concern.
requirements?
Control means both the day-to-day
management and long term decision
Requirement #2 making authority for the business
concern.
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
5. HUBZONE Getting Started
ELIGIBILITY Step 1 – Confirming your HUBZONE Eligibility
3. 35% of your business concerns employees must reside in a
Do you meet the 5 SBA designated HUBZONE.
Employee means any individual
basic HUBZONE
employed on a full-time, part-time,
eligibility basis, so long as that individual
requirements? works a minimum of 40 hours per
month. This includes employees
obtained from a temporary agency,
Requirement #3 leasing concern, or through a union
agreement or a professional
employer organization (PEO).
To Verify:
http://map.sba.gov/hubzone/maps/ Reside means to live in a primary
residence for at least 180 days, or
as a currently registered voter.
(Drivers License, State Issued ID or
Voters Registration Card)
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
6. HUBZONE Getting Started
ELIGIBILITY Step 1 – Confirming your HUBZONE Eligibility
4. Your business concern must be classified as a small business
Do you meet the 5 as defined by the SBA.
basic HUBZONE Small business means the
eligibility business concern, with its affiliates,
must meet the size standard
requirements? corresponding to its primary industry
classification.
Requirement #4 Example- Business Concern
performing Commercial Construction
with a NAICS code of 236220. Size
To Verify: Standard of $33.5M. $33.5 averaged
http://www.sba.gov/size over last three tax years.
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
7. HUBZONE Getting Started
ELIGBILITY Step 1 – Confirming your HUBZONE Eligibility
5. Certify that when performing a HUBZONE contract, at least
Do you meet the 5 35% of it’s employees engaged in performing that contract will
reside within a SBA designated HUBZONE.
basic HUBZONE
eligibility The business concern must attempt
requirements? to maintain that applicable
percentage state above during the
performance of any HUBZONE
Requirement #5 contract It receives.
To View the Current HUBZone Regs:
http://www.tinyurl.com/hubzonereg
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
8. HUBZONE Getting Started
ELIGBILITY 5 Reasons to use Cloveer Inc. to prepare your HUBZONE
Application!
1. Our Average client approval is 90 days or less.
5 Reasons to use 2. We have a 100% approval rate and have never had a client HUBZone
Cloveer Inc. to prepare Application denied by the SBA since we spend the time to make sure all
information submitted meet the SBA regulations.
your HUBZONE
Application. 3. We fully understand all of the latest SBA HUBZone rules and regulations
that govern the eligibility of the principals and business concern.
813-333-5800 4. Our fee for the entire service is fixed. Don't be fooled into choosing another
consultant who will prepare your HUBZone Application at some rock bottom
price. They will usually just nickel and dime you with add-ons fees after
signing up and you may very well end up paying more in the long run.
To learn more:
http://www.cloveer.com/hubzone.html
5. We work with our clients to make sure all potential eligibility issues are
solved prior to submission and attempt to pre-empt any potential questions
by the SBA to expedite the review and approval process.
Cloveer, Inc. www
HHH.cloveer.com
WWW.CLOVEER.COM | 813-333-
Your HUBZONE Specialists
5800
9. THANKS FOR WATCHING
Visit Cloveer, Inc. at www.cloveer.com or call 813-333-5800
Your SBA HUBZONE, 8(a) and WOSB Specialists
Notes de l'éditeur
There are 5 basic requirements that must be met to be eligible for HUBZone Certification.The first requirement is that the business concern’s principal office must be located in a qualified SBA designated HUBZone.The SBA defines your principal office as the location where the business concern’s greatest number of employees report to or perform their work. For a construction or services business this excludes any jobsite or client site as these would not be considered a principal office even if they had the greatest number of employees.For example, if your business concern has a total of 5 employees, and 2 of your employees perform their work at your office, in which you have a lease agreement for, and the 3 other employees perform their work at a jobsite, the office where the 2 employees perform their work will be considered the principal office since jobsites are excluded.A 2nd example would be for a business concern with multiple office locations. For example, if you have an office in Maryland with 5 employees and another office, located in Florida, with 10 employees, the Florida office will be considered the principal office regardless of where the owners of the business perform their work.To verify if your principal office is located in a qualified SBA designated HUBZone visit the link on this page. Let’s look at an example.
As you can see from this example, we entered the full address that has been determined to be the principal office location.The SBA mapping system will search and return results identifying whether or not the address is located within a qualified SBA designated HUBZone.If the search indicates the address is located in a qualified SBA designated HUBZone it will display your searched location in green. The red areas designate any non qualified areas. Let’s proceed to the next eligibility requirement.
The second requirement is that the business concern must be at least 51% unconditionally and directly owned and controlled by persons who are US citizens.Directly owned means just as it sounds. The person must directly own the business concern. Ownership of the business cannot be through another business or through a trust, unless the trust is revocable and the person is the sole grantor and trustee of the trust.To meet the unconditional control requirement, the person must generally be the highest ranking officer and make all day-to-day and long term decisions on behalf of the company.Let’s proceed to the next eligibility requirement.
The third requirement is that 35% of the business concern employeesmust reside in a SBA designated HUBZone.An employee is defined as any individual who the business concern employees on a full-time or part-time basis, so long as that individual works a minimum of 40 hours per month. Individuals who the business concern employs as subcontractor, through a 1099 or work less than 40 hours a month is not considered an employee. Individuals who your business concern employee through a temp agency, leasing concern, a union agreement or a professional employer organization are considered employees as long as they meet the 40 hour per month requirement.Another important note is that any individual must have worked at least 40 hours for the business concern before they will be considered an employee by the SBA so if you just hired an individual they must work at least 40 hours in the current month to be considered an employee.Just as we discussed within requirement number 1, you may visit the link on this page and enter their primary residence address to determine whether or not they are located within a SBA designated HUBZone. They do not have to live in the same HUBZone designated area as the business concern is located within.Each individual who you have identified as part of the 35% must have a valid drivers license, state issued ID card or voters registration card that indicates their primary residence address.Let’s proceed to the next eligibility requirement.
The fourth requirement is that the business concern must be classified as a small business as defined by the SBA.A small business must meet the size standard corresponding to its primary classification or NAICS code. For example, if the majority of the revenues earned within the most recently completed fiscal years was within Commercial Construction, the primary NAICS code would be 236220. The current SBA size standard corresponding to this NAICS code is $33.5M. In order for this business concern to be considered a small business, the gross receipts reported on the business concerns tax returns averaged over the last three tax years must be less than $33.5M.Some NAICS codes are based upon gross receipts while others are based upon the number of employees. It is important to note that the SBA also includes the gross receipts or numbers of employees of any other business concern they deem as an affiliate in making a determination whether the business concern is classified as a small business. An affiliate may be another business any principal of the business concern has ownership in or if there are any other factors that meet the SBA’s affiliation requirements.To find out more on SBA size standards including how to find out what your exact size standard is, please visit www.sba.gov/size.Let’s proceed to the next eligibility requirement.
The fifth requirement is that the business concern must certify when it is performing a HUBZone contract that at least 35% of its employees engaged in performing that contract will reside within a SBA designated HUBZone.To view the current regualtions on HUBZONE Certification visit the link on this page.
Thank for watching the Getting Started Video. Continue on to the next step in the HUBZone Accelerator video series.
