Legislation Could Alter HUBZone Program

By Robert Brodsky

The Historically Underutilized Business Zone - or HUBZone - program could be set for some major changes. On Wednesday, four members of the Senate Committee on Small Business and Entrepreneurship introduced a bill that would improve the management and oversight of the program, which provides assistance to small businesses in economically distressed areas.

The HUBZone Improvement Act of 2010, which is sponsored by Committee Chairwoman Mary Landrieu, D-La.; Ranking Member Olympia Snowe, R-Maine; Sens. Kit Bond, R-Mo. and Jeff Merkley, D-Ore., would implement recommendations about the program which have been suggested by the Government Accountability Office.

The bill would require the Small Business Administration to:

· maintain a correct, accurate and updated map to identify HUBZone areas;

· implement policies that ensure only eligible firms participate in the program;

· employ appropriate technology to control costs and maximize efficiency;

· notify the House and Senate Small Business Committees of any backlogs in applications or recertifications with plans and timetables for eliminating the back log;

· implement plans to access the effectiveness of the HUBZone program;

· ensure small businesses meet the 35 percent HUBZone residency requirement at the time of bid as well as contract award.