What is the 20% rule for HUBZone?

During the application process, a company must certify its commitment to maintain a workforce where at least 35% of its employees reside in a HUBZone while executing any HUBZone contracts. If the company is owned in whole or in part by one or more Indian Tribal Governments, it must similarly strive to meet the applicable employment percentage requirement. Making substantial and well-documented efforts, such as offering employment, advertising job vacancies, and participating in job fairs, are considered attempts to maintain compliance. It’s important to note that these obligations only apply during the performance of HUBZone contracts. Failure to meet the HUBZone residency requirement with less than 20% of employees residing in a HUBZone during contract execution will be deemed as a failure to make the required attempt.

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