Rule2025-10156

HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction

Primary source

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Published
June 4, 2025
Effective
June 4, 2025

Issuing agencies

Small Business Administration

Abstract

The U.S. Small Business Administration (SBA) is correcting a final rule that was published in the Federal Register on December 17, 2024. The rule clarified and improved policies surrounding a comprehensive revision to the HUBZone Program regulations published in 2019, among other changes. This document is making several technical corrections to the final regulations.

Full Text

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<title>Federal Register, Volume 90 Issue 106 (Wednesday, June 4, 2025)</title>
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[Federal Register Volume 90, Number 106 (Wednesday, June 4, 2025)]
[Rules and Regulations]
[Pages 23609-23610]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10156]



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Federal Register / Vol. 90, No. 106 / Wednesday, June 4, 2025 / Rules 
and Regulations

[[Page 23609]]



SMALL BUSINESS ADMINISTRATION

13 CFR Parts 125 and 126

RIN 3245-AH68


HUBZone Program Updates and Clarifications, and Clarifications to 
Other Small Business Programs; Correction

AGENCY: U.S. Small Business Administration.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) is correcting a 
final rule that was published in the Federal Register on December 17, 
2024. The rule clarified and improved policies surrounding a 
comprehensive revision to the HUBZone Program regulations published in 
2019, among other changes. This document is making several technical 
corrections to the final regulations.

DATES: Effective June 4, 2025.

FOR FURTHER INFORMATION CONTACT: Alison Amann, Office of General 
Counsel, (202) 205-6841, <a href="/cdn-cgi/l/email-protection#e7868b8e948889c9868a868989a7948586c9808891"><span class="__cf_email__" data-cfemail="94f5f8fde7fbfabaf5f9f5fafad4e7f6f5baf3fbe2">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: On December 17, 2024, SBA published a final 
rule amending the regulations pertaining to the HUBZone program and 
SBA's other small business contracting programs to reduce unnecessary 
or excessive burdens on small businesses, clarify certain policies, and 
make the regulations governing SBA's contracting programs more 
consistent. 89 FR 102448. This is the second set of corrections. The 
first set of corrections was published in the Federal Register on 
February 18, 2025. 90 FR 9673. This document augments those 
corrections.
    The final rule made several amendments to Sec.  121.103. While 
making those changes, SBA intended to make a corresponding amendment to 
the citation cross-referenced in SBA's joint venture regulations at 
Sec.  125.8(a) but that corresponding amendment was inadvertently 
omitted from the final rule. Currently, Sec.  125.8(a) references 
exceptions to affiliation for SBA-approved mentor-prot[eacute]g[eacute] 
agreements at Sec.  121.103(h)(4). This correction fixes that citation 
so that Sec.  125.8(a) references Sec.  121.103(b).
    The final rule created new Sec.  125.12, addressing size 
recertification and small business program status recertification. This 
correction fixes the numbering of the subparagraphs in paragraph (g) of 
Sec.  125.12.
    The final rule amended Sec.  126.103 by revising the definition of 
``Employee.'' In the proposed rule preceding the final rule, SBA had 
proposed to require an employee to work at least 80 hours per month. 
Based on the comments received, SBA did not implement this proposal. 
Instead, the final rule provided that an employee was an individual who 
worked at least 10 hours per week during the relevant four-week period. 
However, in the final rule, two subparagraphs in the definition of 
``Employee'' inadvertently retained the proposed 80-hour standard 
instead of the 10-hour-per-week standard. This correction fixes that 
error.
    The final rule amended Sec.  126.200 by revising paragraph (d)(3), 
which addresses ``Legacy HUBZone Employees.'' The final rule 
inadvertently retained references to annual recertification, which was 
eliminated in the final rule. This correction removes the references to 
annual recertification and replaces them with the term ``HUBZone 
certification anniversary date.''
    The final rule amended the definition of ``reside'' in Sec.  
126.103 to remove voter registration cards from the listing of 
documents that SBA would accept as proof of HUBZone residency, since 
voter registration cards generally do not include issue dates. However, 
SBA inadvertently failed to make the corresponding change to Sec.  
126.304, which addresses the documents that a firm must submit to be 
certified as a HUBZone small business concern. This correction fixes 
that omission by removing the reference to voter registration cards 
from Sec.  126.304.

List of Subjects

13 CFR Part 125

    Government contracts, Government procurement, Reporting and 
recordkeeping requirements, Small businesses, Technical assistance, 
Veterans.

13 CFR Part 126

    Administrative practice and procedure, Government procurement, 
Penalties, Reporting and recordkeeping requirements, Small businesses.

    Accordingly, 13 CFR parts 125 and 126 are corrected by making the 
following correcting amendments:

PART 125--GOVERNMENT CONTRACTING PROGRAMS

0
1. The authority citation for part 125 continues to read as follows:

    Authority: 15 U.S.C. 632(p), (q), 634(b)(6), 637, 644, 657f, 
657q, 657r, and 657s; 38 U.S.C. 501 and 8127.


Sec.  125.8  [Amended]

0
2. Amend Sec.  125.8, in paragraph (a), by removing ``Sec.  
121.103(h)(4)'' and adding in its place ``Sec.  121.103(b)''.


Sec.  125.12  [Amended]

0
3. Amend Sec.  125.12 by redesignating paragraphs (g)(i) and (ii) as 
paragraphs (g)(1) and (2).

PART 126--HUBZONE PROGRAM

0
4. The authority citation for part 126 continues to read as follows:

    Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a.


Sec.  126.103  [Amended]

0
5. Amend Sec.  126.103, in the definition of ``Employee'', by:
0
a. In paragraph (2)(ii), removing the text ``80 hours or more'' and 
adding in its place the text ``at least 10 hours per week''; and
0
b. In paragraph (2)(iii), removing the text ``80 hours'' and adding in 
its place the text ``10 hours per week''.


Sec.  126.200  [Amended]

0
6. Amend Sec.  126.200 by:
0
a. In paragraph (d)(3)(i)(A), removing the text ``(or recertification 
date)'' and adding in its place the text ``(or certification 
anniversary date)'';
0
b. In paragraph (d)(3)(iii), removing the text ``certification (or 
recertification)'' and adding in its place ``the firm's HUBZone 
certification date (or certification anniversary date)''; and
0
c. In paragraph (d)(3)(iv), removing the text ``certification date or 
recertification date'' and adding in its

[[Page 23610]]

place the text ``HUBZone certification date (or certification 
anniversary date)''.


Sec.  126.304  [Amended]

0
7. Amend Sec.  126.304, in paragraph (b)(2), by removing the text ``and 
voter registration cards'' and the text ``accompanied by signed 
statements explaining why the alternative documentation is being 
provided''.

Larry Stubblefield,
Deputy Associate Administrator, Government Contracting and Business 
Development.
[FR Doc. 2025-10156 Filed 6-3-25; 8:45 am]
BILLING CODE 8026-09-P


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Indexed from Federal Register on June 4, 2025.

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