HUB Zone


The Historically Underutilized Business (HUB) Program was created to promote full and equal procurement opportunities for small, minority- and women-owned businesses.

Companies interested in doing business with the state are encouraged to become HUB certified. This is accomplished by completing an application and submitting it to theTexas Comptroller of Public Accounts(CPA). Once approved, the company is considered “certified” and agencies using them on contracts receive credit toward meeting established HUB goals. The HUB Program is a state-level program required by law and managed by the CPA.

In accordance with Chapter 2161 of the Texas Government Code, State agencies, including institutions of higher education, shall make a good faith effort to utilize HUBs in state contracts, including contracts for construction, services, and commodities.

A “Historically Underutilized Business”…
  • is a for-profit entity that has not exceeded the size standards prescribed by34TAC§20.23, and has its principal place of business in Texas, and

  • is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman, and/or Service Disabled Veteran, who resides in Texas and actively participates in the control, operations, and management of the entity’s affairs.

Benefits of HUB Certification
  • Business is registered on the Comptroller’s web-based HUB Directory. State agencies use the HUB Directory in conjunction with the Comptroller’s Centralized Master Bidders List (CMBL)to solicit bids from certified HUBs for state purchasing and public works contracts. Prime contractors also use the HUB Directory to identify HUBs to whom they will send notification of their subcontracting opportunities.

  • Increased exposure to the general public, as well as, other entities who have a supplier diversity program and are searching for minority and women-owned businesses.

  • Certified HUBs are included in the HUB directory that is maintained by the CPA which is accessed daily by state agencies searching for certified HUBs. Certification does not guarantee the award of contracts to HUB businesses, but it does increase their visibility within the state contract/procurement process.

For more information regarding the HUB program and certification, go to The Window on State Government, Texas Comptroller of Public Accounts webpage, or contact CPA by phone at (512) 463-5872.

U.S. Small Business Administration HUBZone Program

The Historically Underutilized Business Zones(HUBZone) 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. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences.

SBA’s HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.

How the HUBZone Program Works
Similar to its The SBA regulates and implements the HUBZone program by determining which businesses are eligible to receive HUBZone contracts and maintaining a list of qualified HUBZone small businesses that federal agencies can use to locate vendors. HUBZone-certified companies benefit from competitive and sole source contracting, 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns.

Eligibility for HUBZone

  • It must be a small business by SBA standards

  • It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe

  • Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act

  • At least 35% of its employees must reside in a HUBZone.

In San Patricio County, the city of Mathis qualifies as a HUBZone qualified census tract, and the city of Odem is labeled as a re-designated tract area

For more information on the U.S. Small Business Administration HUBZone Program, view the SBA HUBZone Primer. Application forms to qualify are located at the webpage.

Who Can Apply?

A city, county, or economic development group covering the Texas region in which the qualified business is considering locating, may apply on behalf of the business, so long as the business is still in the decision-making process to relocate or expand its operations at the applicable site.

Type of Incentive

Qualification for in-state tuition rates at Texas public institutions of higher education for employees of qualified businesses or employees’ family members without first establishing Texas residency. The incentive lasts for a period of 5 years after the qualified business becomes established as part of the state’s Economic Development and Diversification Program (i.e., a qualifying student’s enrollment date may not be more than 5 years after the dates of the qualified business’ establishment in the program).

Eligibility Details

A qualified business:

  1. Must operate in an industry that is expected to provide high economic impact to the Texas region in which it is considering locating; should be a target industry for the state or an ancillary or support industry.

  2. Should promote highly-skilled, high-wage jobs.

  3. Must plan to create new positions which will be filled by local residents in addition to the transferred employees.

  4. Must be in the decision-making process to relocate or expand their operations in Texas during the application process.


With a rolling application period, cities, counties and economic development groups applying on behalf of a qualified business should remember the business must not have already made a location decision at any point during the application process.

The city, county or economic development group covering the region in which the qualified business would be located must initiate a letter of request addressed to the Executive Director of the Governor’s Office of Economic Development & Tourism. The letter should indicate the following:

  1. How the eligibility criteria are met

  2. The approximate number of employees to be transferred

  3. Approximate wages to be paid

  4. Estimated capital investment in the project

Approved companies are listed on the Approved Companies List.

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