How to Expand Your Construction Business in an Economically Depressed Area

 Are you worried about your business being set up in an economically depressed area? Worry no more especially when you have the federal government by your side. Among those many different support programs launched by the government, HubZone Certification is one of the most premium ones. Small firms, irrespective of their line of business can utilize this in order to acquire government contracts and expand their business.



What’s in a HubZone Certification Program

The HUBZone Certification program validates the existence of a business in an economically depressed area. This designation is geographically based. A business can any time move its primary office to exist within a HUBZone area. These areas are determined by using data from the previous census. Areas are chosen based on the poverty and the unemployment rate of that particular area. The HUBZone Certification program is one of the best programs to be in the federal marketplace as the process is quicker and the application shorter.

What’s the Scenario for Construction Industry

The construction industry is definitely a difficult business, more so in the rural areas where the launch of the new housing has come to an absolute halt. Programs such as the HubZone Empowerment Contracting Program may help construction industry businesses at a critical time.

The HUBZone Certification Program (Historically Underutilized Business zones) allows contractors in rural and economically impoverished areas to obtain preferential treatment on government programs. If you are looking to take on some of these contracts, you will need to meet a few guidelines.

Meet the Basic HUBZone requirements

To qualify as a HUBZone contractor, a contractor must have a principal office located in a HUBZone; it must be owned or controlled by U.S. citizens; and at least 35 percent of its full-time employees must be HUBZone residents. Branch offices and satellites do not qualify for the HUBZone program.

 


Be Awarded a HUBZone Contract

 HUBZone contracts are awarded in three ways. When the  number of HubZone businesses bidding for the contract  is increased, then the contract is released at a fairly competitive market price. If only one qualified HUBZone business submits a bid, that business can receive a contract at a fair price. Sometimes contracts are awarded in the open marketplace to the qualified HUBZone businesses. In that case, HubZone bidders get preference over the other bidders. The idea is specifically intended to help the business firms in the economically depressed areas.

 Obtain surety bonding

 A surety bond (pay and performance bond) is a type of insurance that is a guarantee to the customer (the Federal Government) that you will pay your subcontractors and complete the work in question. In some cases you can obtain SBA assistance in procuring your surety bonding.

Final Thoughts

 Precisely, HubZone Certification program brings forth a world of opportunities that other contractors may not be able to receive otherwise if they pitch directly to the government. When you are buying a business a potential opportunity to increase revenues immediately is working with the HubZone program to procure federal contracts.

Location: 10050 Norbotten Dr, Florence, KY 41042, USA

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