HUBZone Redesignated Areas Set to Expire in July 2026: What HUBZone-Certified Firms Need to Know and Plan for Now
Redesignated HUBZone Areas
July 1, 2026 is a critical date for thousands of HUBZone-certified small businesses across the country. When the SBA updated the HUBZone map on July 1, 2023 — reflecting data from the 2020 U.S. Census — many areas that previously qualified as Historically Underutilized Business Zones lost their qualified status due to improved economic indicators. Rather than immediately stripping those businesses of their HUBZone eligibility, the SBA extended a three-year grace period by redesignating those areas as “Redesignated Areas,” with a firm expiration date in July 2026.
That expiration date is now less than five months away, and businesses operating under Redesignated Area status need to act.
What Are Redesignated Areas and Why Do They Expire?
Under the Small Business Act, when a Qualified Non-Metropolitan County or Qualified Census Tract loses its HUBZone status, it is recategorized as a “Redesignated Area.” This designation provides a three-year transition window for businesses in those communities to adjust. Redesignated Areas always carry an expiration date, and for areas newly redesignated in 2023, that expiration is July 1, 2026.
What Happens on July 1, 2026?
On July 1, 2026, firms whose principal offices are located in areas that were redesignated in 2023 will no longer qualify for HUBZone certification based solely on that location. Practically speaking, this means:
- Loss of HUBZone eligibility for new contracts: Firms that no longer meet the principal office requirement after July 1, 2026 cannot receive new HUBZone set-aside awards or benefit from the 10% price evaluation preference.
- Existing contracts are protected: Firms that were eligible at the time of offer for a HUBZone contract are generally considered HUBZone firms through the life of that contract. Losing Redesignated Area status will not retroactively invalidate existing awards.
- Recertification triggers loss: For firms that have not already lost their HUBZone status due to the 2023 map change, eligibility ends at their next annual recertification following July 1, 2026, if the principal office is no longer in a qualifying area.
Steps HUBZone Firms Should Take Now
Verify Your Status on the HUBZone Map
The first and most important step is to check whether your principal office is currently located in a Redesignated Area set to expire on July 1, 2026. You can do this by visiting the SBA’s official HUBZone map. The map uses color coding and symbols to distinguish active HUBZones from expiring Redesignated Areas. The SBA provides a helpful and informative overview and guide to assist with reading the HUBZone map.
Assess Your Options Before the Deadline
If your area is set to expire, you have several potential paths forward:
- Relocate your principal office to an active, qualifying HUBZone area before July 1, This is the most direct way to maintain uninterrupted eligibility.
- Evaluate whether other HUBZone designations apply to your current Some addresses may carry multiple designations — if at least one active qualification applies to your address, your location remains eligible.
- Consider transitioning your strategy away from HUBZone set-asides if relocation is not feasible, and explore other socio-economic contracting programs for which your firm may qualify.
Confirm Employee Residency Requirements
Even if your principal office remains in a qualifying HUBZone, you must also ensure that at least 35% of your employees reside in a HUBZone area. Map changes can affect employee residency qualifications just as they affect principal office locations. Verify each employee’s residential address against the current HUBZone map ahead of your next annual recertification.
Prepare for Recertification
HUBZone firms recertify every three years, with annual attestations required in between. You should understand exactly when your next recertification is due and ensure that, on that date, you continue to meet all eligibility requirements. If your area is expiring on July 1, 2026, and your recertification falls shortly after, you will need to be in full compliance at that time.
The Bigger Picture: An Evolving Compliance Landscape for Small Business Contractors
The HUBZone map expiration on July 1, 2026 does not occur in isolation. It is part of a broader wave of regulatory scrutiny and program oversight affecting small business contractors across SBA’s suite of programs. The common thread is clear: the SBA is actively enforcing program eligibility standards, and small businesses must prioritize proactive compliance over reactive damage control.
For HUBZone firms in need of compliance support or that have questions about recertification and compliance, don’t hesitate to reach out to the attorneys at Ward & Berry for assistance and guidance.