HUB (Historically Underused Business)

HUB (Historically Underutilized Businesses) are businesses that have been traditionally underutilized in the government contracting process due to various factors, including but not limited to size, ownership structure, and socio-economic background. The official definition of an HUB is “a business, at least 51 percent of which is owned by one or more individuals who are both socially and economically disadvantaged or a firm that is certified by a state or regional certifying body as having been socially or economically disadvantaged.” These businesses may be granted preferential access to government contracts through policies like set-asides and sole-source awards. By utilizing these businesses in procurement processes, governments can create opportunities for economic growth and sustainability while fostering diversity and inclusion within the marketplace.