The Small Business Administration (SBA) amended its regulations recently to incorporate provisions in the 2018 NDAA (National Defense Authorization Act). Among those provisions is a rule that takes effect next month relating to ownership requirements of HUBZone (Historically Underutilized Business Zone) businesses. The new regulations will allow indirect ownership by United States citizens.
This indirect ownership provision has been made to more accurately align with the underlying statutory authority and recognizes that the HUBZone program is focused on the location of the business and its employees, rather than the socioeconomic status of the business owner.
The new rule deletes the requirement that ownership by US citizens in the HUBZone program must be direct to one where small business concerns must be at least 51 percent owned and controlled by US citizens.
Read more about the HUBZone ownership rule changes here.
See the current SBA HUBZone map here.