Part 2: Program-Specific Documents

*Future requirements

VOSB and SDVOSB Certification-Specific Documents

• Marriage Certificate. If the application is prepared by or the business is owned by a surviving spouse who has not remarried, provide proof of marriage such as a marriage certificate.

• Caregiver Formal Appointment. If the application is prepared by a permanent caregiver for a veteran with a permanent, total, service-connected disability, please provide the caregiver’s formal appointment written determination from the VA that the veteran has a permanent and total service-connected disability.

WOSB and EDWOSB Certification-Specific Documents

• Proof of Name Change. If your name differs from your submitted citizenship document (e.g., marriage), you may have to provide a proof of name change (e.g., state-filed documents for official name change, marriage license, unexpired passport, front and back copy of unexpired military ID).

• Reciprocal Certifications. The review of some WOSB applications can move faster if the business has an existing certification that SBA recognizes.

  • If the business is an 8(a) Business Development Program participant, please upload the most recent annual review letter or 8(a) acceptance letter if the business is in the first program year to expedite the review.

  • If the business has been certified by an SBA-approved WOSB Third-Party Certifier (TPC), please upload the certificate to demonstrate WOSB/EDWOSB program eligibility.

• Outside Employment Explanation. Provide a statement explaining any outside employment the owner currently has with another business.

  • Resume. Provide a personal resume that includes the following information: education and/or technical training, any additional businesses owned, description of current duties, and any other current or past employment experience, such as employer’s name, dates of employment, job title, and description of duties.

Economically Disadvantaged WOSB (EDWOSB) Requirements. In addition to all other required documents, applicants that wish to qualify as an economically disadvantaged woman-owned small business (EDWOSB) will be required to also report financial information for all owners comprising 51 percent ownership interest to ensure economic disadvantage thresholds are not exceeded. The following documents will be required for all individuals comprising 51 percent ownership:

• Federal Personal Tax Returns from the last three years, including W-2s, Schedules, and attachments.

• Federal Business Tax Returns from the last three years.

• Financial Statements

• Retirement Account Statement. Funds invested in an official retirement account will be excluded from the assessment of an economically disadvantaged individual’s personal net worth. Provide an account statement document issued within 30 days of application submission for each retirement account.

• Personal Financial Information. Required for each woman claiming economic disadvantage and for each woman’s spouse. NOTE: This does not need to be uploaded but must be completed as part of the application. Detailed information is needed regarding the value of all assets (including cash on hand and in banks, accounts, and notes receivable, retirement accounts, stocks, bonds, real estate, personal property, life insurance, and any other assets), liabilities (such as loans, mortgages, tax debts, and any other liabilities), and income (including salary, investment income, real estate income, and any other income).

8(a) Business Development Certification-Specific Documents

The following documents are used to evaluate the business’s potential for success, character, and social disadvantage requirements.

• Federal Business Tax Returns for the last three years (including all schedules, attachments, and proof of payment if a balance was due).

• Financial Statements prepared in accordance with generally accepted accounting principles and no more than 180 days old.

• Explanation for Non-Commercial Loans. An explanation of any private loans included on the financial statements.

• Bonding Statement or Surety Letter. Only required for construction companies.

• Recent Contracts. Up to 10 contracts demonstrating the company’s track record of performance.

• Resume. Detail your business management and technical experience.

• Ownership in Another Business. Include tax returns and financial statements.

• Transmutation Agreement. This document details how you would maintain ownership of your company in the case of a divorce. Only required for applicant qualifying owners who are married and live in an area with community property laws (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, Guam, and Puerto Rico).

• Social Narrative. The owner or owner(s) who are claiming social and economic disadvantage can demonstrate their individual social disadvantage through one of two options: by writing a narrative, or by completing the fillable questionnaire in the system. This guide will provide insight into what elements to include in demonstrating social disadvantage. Guide for Demonstrating Social Disadvantage - Certify Knowledge Base - Confluence

• Economic Disadvantage. In addition to all other required documents, applicant will be required to report financial information for all owners comprising 51 percent ownership interest to ensure economic disadvantage thresholds are not exceeded. The following documents will be required for all individuals comprising 51 percent ownership:

  • Federal Personal Tax Returns from the last three years, including W-2s, Schedules, and attachments.

  • Federal Business Tax Returns from the last three years.

  • Retirement Account Statement. Funds invested in an official retirement account will be excluded from the assessment of an economically disadvantaged individual’s personal net worth. Provide an account statement.

  • Personal Financial Information. Required for each person claiming economic disadvantage and for each person’s spouse. NOTE: This does not need to be uploaded but must be completed as part of the application. Detailed information is needed regarding the value of all assets (including cash on hand and in banks, accounts, and notes receivable, retirement accounts, stocks, bonds, real estate, personal property, life insurance, and any other assets), liabilities (such as loans, mortgages, tax debts, and any other liabilities), and income (including salary, investment income, real estate income, and any other income).

HUBZone Certification-Specific Documents

The HUBZone program requires businesses to have their principal office and 35 percent of their employees operating in a HUBZone. There are many nuanced definitions and requirements regarding the principal office and employees, so please review the information below closely prior to submitting an application for HUBZone certification.

HUBZone Eligibility Calculator

During the application process, applicants will utilize the HUBZone Eligibility Calculator to submit information about each employee listed on the business’s payroll during the most recently completed pay periods that account for the four-week period immediately prior to the application date and will indicate the office to which the employee reports at least 51 percent of their time AND whether the employee is a HUBZone resident. The tool will automatically calculate which office is considered the principal office (and whether it is located in a HUBZone) and whether the business meets the 35 percent HUBZone residency requirement based on the information provided by the applicant.

The business will then upload supporting information as indicated in the sections that follow. For the HUBZone program:

• An “office” is a location owned or leased by the business where employees work.

• A “telework site” is a location where one or more employees regularly telework.

• A “jobsite” is a location where employees work to fulfill specific contract obligations (applicable onlyif the business’s primary industry is service or construction).

The HUBZone Eligibility Calculator will prompt you to provide the following information for each employee listed on the payroll for the required periods immediately preceding your business’s application submission date:

1. Name of each employee.

2. Complete address for the location where the employee worked.

3. Description of location (i.e., office, telework site, or jobsite).

4. Number of hours worked per week at each location.

5. Indication of whether any of the following circumstances apply to the employee:

   1. Obtained from a temporary employee agency, leasing concern1, through a union agreement, or pursuant to a professional employer organization agreement. If applicable, you must submit a copy of the agreement and proof of payment for billed invoices covering the most recently completed four-week period prior to the application date.

   2. An owner or officer not included on payroll.

The HUBZone Eligibility Calculator will automatically check the HUBZone map to determine whether the address provided for the principal office and each HUBZone resident employee is in a HUBZone.

NOTE:

• You can check the HUBZone status of any address using the HUBZone map.

• You may access and save the calculator tool prior to the application process to determine your eligibility.

Principal Office Requirements

Your business’s principal office is the location where the greatest number of employees at any one location perform their work. If an employee works at multiple locations, then the employee will be deemed to work at the location where the employee spends more than 50 percent of his or her time. If an employee does not spend more than 50 percent of his or her time at any one location (and at least one of those locations is a non-HUBZone location), then the employee will be deemed to work at a non-HUBZone location. Additionally, in order for a location to be considered the principal office, the concern must conduct business at this location.

For those concerns whose primary industry is services or construction, the determination of principal office excludes those employees who perform more than 50 percent of their work at jobsites. If all of a concern’s employees perform more than 50 percent of their work at jobsites, the concern does not comply with the principal office requirement.

See 13 CFR 126.103 for the HUBZone definitions of “Principal Office” and “Employee.”

The following documents are required to determine and/or demonstrate proof that the business’s principal office is fully operational and located in a HUBZone.

Lease/Rental Agreement OR Deed/Mortgage Statement

• Provide a copy of a fully executed lease (or rental agreement) or deed (or mortgage statement) for the business’s principal office.

  • The lease/deed must be valid and in effect at the time of the business’s application date. This means it must have a beginning date prior to the application date and end date more than 60 days following the application date.

  • The business’s full legal name or the owner’s full legal name must be identified as being the lessee, renter, owner, or mortgagee of the property identified in the lease/deed.

  • If the deed only includes a parcel description, you must include a property tax bill and/or insurance policy showing the physical address of the principal office location. (Note that the property tax bill and/or insurance policy is for verification of the physical address only—submission of this document in lieu of the required lease or deed is not evidence that the business meets this regulatory requirement.)

• If the business has a month-to-month lease, the business must provide either of the following:

  • An addendum to the expired lease; or

  • If an addendum to the expired lease does not exist, proof of payment for three months leading up to the application date.

• If the business is leasing space in a shared workspace facility, the business must provide the following:

  • A lease indicating that the business has dedicated office space that is not shared with other businesses, it is only accessible to the business, and has a lockable door;

  • The lease must indicate that the dedicated space contains sufficient work surface area and furniture and equipment (e.g., desks and chairs) to accommodate the number of employees claimed to work from this location;

  • Proof of rental payment in the form of canceled checks (front and back), bank statements, and/or proof of credit card transactions covering the relevant time period;

  • Photos of the dedicated office space including photos of the full length of the door to the office including the suite number and work stations; and

  • The lease must be at least 30 days prior to the date of application submission, and the end date must be at least 60 days after the date of application submission.

• If the monthly lease payment amount appears to be significantly below market value, you may be asked to provide additional information regarding the lease agreement.

See the FAQs at http://www.sba.gov/hubzone for additional information related to employees obtained from a leasing concern.

See the FAQs at http://www.sba.gov/hubzone for additional information related to shared working spaces.

Utility Bill

• Provide a copy of the most recent utility bill for the business’s principal office that shows the period of usage and shows the service location. Examples include bills for electricity, gas, water, sewer, or landline telephone. Note that cellular phone and Voice over Internet Protocol (VoIP) bills are not acceptable.

• If you cannot provide a utility bill because utilities are included under the terms of the lease, you must provide the following: a citation showing where the lease provides that utilities are included (e.g., “page 2, paragraph 3”) and proof of payment of rent for three months immediately prior to the application date in the form of canceled checks (including front and back and showing endorsement by the bank), cashier’s checks, bank statements, credit card statements, and money orders. We do not accept paid invoices or cash receipts as proof of rental payment.

HUBZone Employee Requirements

At least 35 percent of all of the business’s employees must live in a HUBZone, regardless of where they work. (See 13 CFR 126.200(d), see also definition of “Employee” at 13 CFR 126.103.).

Payroll Records

The SBA will review a concern’s payroll records for the most recently completed pay periods that account for the four-week period immediately prior to the application date to determine which individuals meet the definition of the term “employee” for HUBZone purposes. For the purposes of the HUBZone program, “employee” means all individuals employed on a full-time, part-time, or other basis, so long as that individual works a minimum of 40 hours during the four-week period immediately prior to the application date. Only individuals who meet the HUBZone definition of “employee” are counted when calculating whether a business meets the 35 percent HUBZone residency and principal office requirements.

The SBA will only accept official payroll records and payroll reports that show, at a minimum: the company’s name; the names of the individuals who performed work during the pay period; the number of hours worked by each employee during the pay period; the wages earned by each individual during the pay period; the taxes deducted from each individual’s wages during the pay period; and the pay period’s beginning and end dates.

Examples of payroll records for the most recently completed payroll periods that account for the four-week period immediately prior to the application date include:

• A business is on a monthly payroll system, where payroll is processed every calendar month. The business submits its application on July 6. The business must submit payroll records for the payroll period from June 1 to June 30.

• A business is on a biweekly payroll system, where payroll is processed every 14 days. The business submits its application on July 6. The business’s most recently completed payroll period prior to July 6 ended June 30. The business must submit payroll records for the payroll periods from June 3 to June 16 and June 17 to June 30.

• A business is on a weekly payroll system, where payroll is processed every 7 days. The business submits its application on July 6. The business’s most recently completed payroll period prior to July 6 ended June 30. The business must submit payroll records for the payroll periods from June 3 to June 9; June 10 to June 1; June 17 to June 2; and June 24 to June 30.

Proof of HUBZone Residency

Provide copies of driver’s licenses or government-issued identification cards showing the home address of each HUBZone resident employee. These documents must be unexpired and issued at least 180 days before the application date. You may also provide a copy of the prior, expired document if the current one was not issued at least 180 days before the application date.

Note for residents of Guam: Ensure that any certificates of residency from the mayor of the municipality include a residency start date.

Note: If the document expires prior to the issuance of the SBA’s written decision to certify the business or deny certification, the SBA will request evidence verifying that the employee continues to reside at this address.

If the employee does not have a current driver’s license or government-issued identification card (or if the address listed on such document does not reflect the employee’s current address, or is a P.O. Box), you must provide:

• Current lease agreement;

• Deed or mortgage statement. One of the mortgage statements must cover the application date and the other must cover the date 180 days prior to the application date; or

• Two utility bills for electricity, gas, cable, internet, or landline phone. Cell phone and VoIP bills will not be accepted. One of the bills must cover the application date and the other must cover the date 180 days prior to the application date.

Job Descriptions and Proof of Work

If any HUBZone employee worked a total of 40 or more but less than 120 hours during the four-week payroll period, provide a copy of their job description. Job descriptions will need to address, at a minimum: the job title, the individual’s duties and responsibilities, the expected work product, and the general job schedule. The SBA will interpret the failure to submit a job description as an indication that the employee is not performing legitimate work for the business and the individual will not be considered an employee for HUBZone program purposes.

If three or more HUBZone employees share the same part-time job description submitted, analysts reviewing applications will require proof that each part-time individual is performing the work outlined in their job description. Required documentation for each individual includes the following:

• Evidence of regular communication with the individual’s supervisor (such as email exchanges, progress reports, meeting notes, etc.) during the relevant payroll periods. Provide at least two email exchanges that are not from the same week.

• Evidence of work product produced during the time of review during the relevant payroll periods.

Additional evidence may include, but is not limited to, the following:

• Detailed timesheets for the relevant payroll periods

• Evidence of employee attendance at meetings or training events during the relevant payroll periods

• Resume

See the FAQs at http://www.sba.gov/hubzone for additional information related to the job description requirement.

Effective October 2024