Editorial Note on Part 126
Editorial Note: Nomenclature changes to part 126 appear at 72 FR 50041, Aug. 30, 2007.

§ 126.501 How long does HUBZone certification last? ( a ) *One-year certification.* Once SBA certifies a concern as eligible to participate in the HUBZone program, the concern will be treated as a certified HUBZone small business concern eligible for all HUBZone contracts for which the concern qualifies as small, for a period of one year from the date of its initial certification or recertification, unless the concern acquires, is acquired by, or merges with another firm during that one-year period, or the concern is performing a HUBZone contract and fails to attempt to maintain the minimum employee HUBZone residency requirement (*see* § 126.103). ( 1 ) A certified HUBZone small business concern that acquires, is acquired by, or merges with another business entity must notify SBA within 30 days of the transaction becoming final. The concern must then demonstrate to SBA that it continues to meet the HUBZone eligibility requirements in order for it to remain eligible as a certified HUBZone small business concern.
( 2 ) A certified HUBZone small business concern that is performing a HUBZone contract and fails to attempt to maintain the minimum employee HUBZone residency requirement (*see* § 126.103) must notify SBA within 30 days of such occurrence. A concern that cannot meet the requirement may voluntarily withdraw from the program, or it will be removed by SBA pursuant to program decertification procedures.
( b ) *Annual recertification.* On the annual anniversary of a concern's certification or recertification, the concern must recertify that it is fully compliant with all HUBZone eligibility requirements (*see* § 126.200), or it can request to voluntarily withdraw from the HUBZone program.
( c ) *Review of recertification.* SBA may review the concern's recertification through the program examination process when deemed appropriate and will do so every three years pursuant to § 126.500. ( 1 ) If SBA determines that the concern is no longer eligible at the time of its recertification, SBA will propose the HUBZone small business concern for decertification pursuant to § 126.503.
( 2 ) If SBA determines that the concern continues to be eligible, SBA will notify the concern of this determination. In such case, the concern will: ( i ) Continue to be designated as a certified HUBZone small business concern in DSBS (or successor system); and
( ii ) Be treated as an eligible HUBZone small business concern for all HUBZone contracts for which the concern qualifies as small for a period of one year from the date of the recertification.
( d ) *Voluntary withdrawal.* A HUBZone small business concern may request to voluntarily withdraw from the HUBZone program at any time. Once SBA concurs, SBA will decertify the concern and no longer designate it as a certified HUBZone small business concern in DSBS (or successor system). The concern may apply again for certification at any point ninety (90) calendar days after the date of decertification. At that point, the concern would have to demonstrate that it meets all HUBZone eligibility requirements.
[84 FR 65246, Nov. 26, 2019]