| Description | Spatial | Attributes |
Criteria for HUBZone Qualified Census Tract Designation:The Small Business Act defines a Qualified Census Tract (QCT) as having the meaning set forth in Section 42 of the Internal Revenue Code of 1986. That section of the tax code defines a QCT for purposes of the Low Income Housing Tax Credit (LIHTC) program. The US Department of Housing and Urban Development (HUD) designates QCTs for purposes of the LIHTC program. The LIHTC statute provides two criteria for QCT eligibility. A census tract must have either: 1) a poverty rate of at least 25 percent; or 2)50 percent or more of its householders must have incomes below 60 percent of the area median household income. Further, the LIHTC statute requires that no more than 20 percent of the metropolitan area population reside within designated QCTs. (This limit also applies collectively to the nonmetropolitan counties in each state). Thus, it is possible for a tract to meet one or both of the above criteria, but not be designated as a QCT. The LIHTC statute does not provide for an appeal process to change the QCT designation of an individual census tract.Qualified Census Tract designations are updated every five years based on data from the Department of Housing and Urban Development. If new data disqualifies a census tract from QCT designation, that tract is termed "redesignated," and is given a grandfathering period wherin the tract retains HUBZone qualification. Redesignation expires three years after the date on which the census tract ceased to be qualified.Criteria for HUBZone Small Business Certification:In order to take advantage of HUBZone benefits, small businesses located within a QCT must apply for HUBZone certification. To qualify for certification, a business must meet the following criteria:It must be a small business by SBA standardsIt must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribeIts 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 ActAt least 35% of its employees must reside in a HUBZone.For more information, or to apply for HUBZone certification, please visit http://www.sba.gov/hubzone.
This layer shows Census Tracts that qualify as Historically Underutilized Business Zones (HUBZones) according to the U.S. Small Business Administration. The HUBZone program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. For more information, or to apply for HUBZone certification, please visit http://www.sba.gov/hubzone.