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The President has signed into law legislation authored by Rep. Nydia M. Velázquez (D-NY) that would improve and reform a popular government program aimed at benefiting firms operating in economically distressed areas.  Created in 1998, the HUBZone program helps small companies in these areas to do business with the federal government.  The program is overseen by the Small Business Administration (SBA).  Velázquez, who serves the top Democrat on the Small Business Committee, authored legislation to improve the program with Small Business Committee Chairman Steve Chabot (R-OH).  The measure was enacted as part of a larger defense authorization bill.  

“Federal contracting can be a powerful tool for creating jobs in economically distressed areas and the HUBZone program helps advance that goal,” said Ranking Member Velázquez. “After carefully studying and listening to small businesses on the ground, I’m confident the reforms we enacted will make this initiative even more effective for companies operating in disadvantaged areas.”

Among other reforms, the new law makes these changes: 

• Establishes a 5-year cycle for determining the geographic boundaries of HUBZones, creating greater certainty for companies operating in the program. 

• Changes the calculations by which certain geographic areas qualify for the program, potentially adding as many as 1,000 rural and non-urban counties, helping more businesses avail themselves of the HUBZone initiative’s benefits.  

• These and other changes would be implemented beginning in 2020.  

“Ultimately, this new law will bring greater transparency and stability to the HUBZone program,” Velázquez added. “When HUBZone operates as intended, it can create opportunity and bring commerce to areas that are suffering economically.  I’m pleased we were able to get these job creating reforms across the finish line and signed into law.” 

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