HUB Zone: Other Program Benefits
Small businesses located in HUB Zone areas can qualify for higher government guaranties on surety bonds for construction and service contract bids. The SBA will increase its guaranty on surety bonds to these companies from 80 percent to 90 percent, making it easier for them to compete for government and private sector contracts.
Many HUB Zones overlap with Empowerment Zones and Enterprise Communities, Eligible HUB Zone firms that are also located in Empowerment Zones and Enterprise Communities may qualify for additional benefits:
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Employer tax credits equal to 20 percent of the first $15,000 of wages or training expenses for qualified Empowerment Zone employees;
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Tax-free facility bonds of up to $3 million for some Empowerment Zones and Enterprise Communities; and
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An additional $20,000 tax deduction for qualified businesses or investments in Empowerment Zones.