In 1998, Congress enacted the HUBZone Empowerment Act as a part of the Small Business Reauthorization Act. Its purpose was to assist business owners operating in historically underutilized business zones (or HUBZones), and later evolved into the SBA’s HubZone program that we have today.
In compliance with the act, the federal government now reserves 3% of all contracting opportunities allocated each year just for small businesses operating in HUBZones. That means billions of dollars in exclusive government work opportunities, just for being located in an underutilized location of the country.