13 C.F.R. Subpart E—Maintaining HUBZone Status
Title 13 - Business Credit and Assistance
Any qualified HUBZone SBC seeking to remain on the List must recertify every three years to SBA that it remains a qualified HUBZone SBC (See §126.501 for ongoing obligations). Concerns wishing to remain in the program without any interruption must recertify their continued eligibility to SBA within 30 calendar days after the third anniversary of their date of certification and each subsequent three-year period. Failure to do so will result in SBA initiating decertification proceedings. Once decertified, the concern then would have to submit a new application for certification pursuant to §126.309. The recertification to SBA must be in writing and must represent that the circumstances relative to eligibility that existed on the date of certification showing on the List have not materially changed and that the concern meets any new eligibility requirements. [69 FR 29424, May 24, 2004] A qualified HUBZone SBC must immediately notify SBA of any material change that could affect its eligibility. Material change includes, but is not limited to, a change in the ownership, business structure, or principal office of the concern, or a failure to meet the 35% HUBZone residency requirement (See §126.200 for certain eligibility requirements). The notification must be in writing, and must be sent or delivered to the AA/HUB to comply with this requirement. Failure of a qualified HUBZone SBC to notify SBA of such a material change may result in decertification and removal from the List pursuant to §126.504. In addition, SBA may seek the imposition of penalties under §126.900. If the concern later becomes eligible for the program, it must apply for certification pursuant to §§126.300 through 126.306. [69 FR 29424, May 24, 2004] There is no limit to the length of time a qualified HUBZone SBC may remain on the List so long as it continues to follow the provisions of §§126.200, 126.500, and 126.501. If SBA is unable to verify a qualified HUBZone SBC's eligibility or determines it is not eligible for the program, SBA may propose decertification of the concern. (a) Proposing Decertification. Except as set forth in paragraph (c) of this section, the Deputy AA/HUB or designee will first notify the qualified HUBZone SBC in writing that SBA is proposing to decertify it, the reasons for the proposed de-certification, and that the SBC must rebut each of the reasons SBA sets forth. The qualified HUBZone SBC will have 30 calendar days from the date that it receives SBA's notification to respond, in writing, to the AA/HUB or designee. (b) SBA's Decision. The AA/HUB or designee will consider the reasons for proposed decertification and the qualified HUBZone SBC's response before making a written decision whether to decertify. The AA/HUB may draw an adverse inference where a qualified HUBZone SBC fails to cooperate with SBA or provide the information requested. The AA/HUB's decision is the final agency decision. (c) Decertifying Pursuant to a Protest. SBA will decertify a qualified HUBZone SBC and remove its name from the List without first proposing it for decertification if the AA/HUB upholds a protest pursuant to §126.803 and the AA/HUB's decision is not overturned pursuant to §126.805. [69 FR 29424, May 24, 2004, as amended at 70 FR 51250, Aug. 30, 2005] If SBA determines at any time that a HUBZone SBC is not qualified, SBA may de-certify the HUBZone SBC, remove the concern from the List, and seek imposition of penalties pursuant to §126.900. An adverse finding in the resolution of a protest also may result in de-certification and removal from the List, and the imposition of penalties pursuant to §126.900. Failure to notify SBA of a material change which could affect a concern's eligibility will result in immediate de-certification, removal from the List, and SBA may seek the imposition of penalties under §126.900. [63 FR 31908, June 11, 1998. Redesignated at 69 FR 29424, May 24, 2004]
Title 13: Business Credit and Assistance
PART 126—HUBZONE PROGRAM
Subpart E—Maintaining HUBZone Status
§ 126.500 How does a qualified HUBZone SBC maintain HUBZone certification?
§ 126.501 What are a qualified HUBZone SBC's ongoing obligations to SBA?
§ 126.502 Is there a limit to the length of time a qualified HUBZone SBC may be on the List?
§ 126.503 What happens if SBA is unable to verify a qualified HUBZone SBC's eligibility or determines that the concern is no longer eligible for the program?
§ 126.504 When is a concern removed from the List?
