FAR 19.1301—General.
Plain-English Summary
FAR 19.1301 is the opening, policy-setting section for the HUBZone Program. It identifies the legal source of the program—the HUBZone Act of 1997—and states the program’s core purpose: to provide Federal contracting assistance to qualified small business concerns located in historically underutilized business zones. In practical terms, this section explains why the HUBZone program exists and what government buyers are trying to achieve when they use it: channeling federal contracting dollars to small businesses in distressed communities to help create jobs, attract investment, and support economic development. Although this section does not itself set eligibility procedures, set-aside rules, or award mechanics, it frames the entire subpart by establishing the policy rationale that guides later HUBZone requirements. For contractors, it signals that HUBZone status is not just a label but a statutory tool tied to location, small business qualification, and community development goals. For contracting officers, it provides the basic justification for using HUBZone authorities in acquisition planning and source selection decisions where applicable.
Key Rules
HUBZone program is statutory
The HUBZone Program was created by the HUBZone Act of 1997, which gives the program its legal foundation. This means the program is not discretionary policy alone; it is a congressionally authorized small business contracting program.
Program supports qualified small businesses
Federal contracting assistance under this section is directed to qualified small business concerns. The focus is on businesses that meet the program’s qualification requirements, not on all small businesses generally.
Location in HUBZones matters
The program is aimed at businesses located in historically underutilized business zones. Geographic location is central to the program’s design because the benefit is intended to flow to businesses operating in economically distressed areas.
Economic development is the policy goal
The purpose of the program is to increase employment opportunities, investment, and economic development in HUBZones. This policy objective explains why the government gives contracting preference or assistance through the program.
Responsibilities
Congress
Establishes the statutory authority for the HUBZone Program through the HUBZone Act of 1997.
Agency / Federal Government
Uses the HUBZone Program as a contracting tool to provide assistance to qualified small businesses in HUBZones and to further the program’s economic development objectives.
Contracting Officer
Recognizes the program’s purpose and statutory basis when planning and awarding contracts under HUBZone authorities, ensuring the program is used consistently with its intended economic development goals.
Contractor / Small Business Concern
Understands that HUBZone participation is intended for qualified small businesses located in HUBZones and that the program exists to support businesses meeting those location- and qualification-based requirements.
Practical Implications
This section is mainly a policy foundation, so it does not tell you how to certify, compete, or award a HUBZone contract; those details appear later in the subpart. Users should not mistake this general statement of purpose for the full eligibility or procedural rule set.
Contractors should view HUBZone status as a compliance-sensitive advantage tied to both small business qualification and location in a HUBZone. If either element changes, the business may lose access to HUBZone benefits.
Contracting officers should use this section to understand the reason behind HUBZone preferences: the goal is not just small business participation, but targeted economic development in distressed areas.
A common pitfall is assuming that any small business in a low-income area automatically qualifies. The program is limited to businesses that meet the HUBZone program’s specific statutory and regulatory requirements.
Because the section emphasizes economic development, agencies should be prepared to document and justify HUBZone use in a way that aligns with the program’s purpose and the broader small business acquisition strategy.
Official Regulatory Text
(a) The Historically Underutilized Business Zone (HUBZone) Act of 1997 ( 15 U.S.C.631 note) created the HUBZone Program. (b) The purpose of the HUBZone Program is to provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones, in an effort to increase employment opportunities, investment, and economic development in those areas.