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Company Classification

Historically Underutilized Business (HUB)

A Historically Underutilized Business (HUB) is a corporation, sole proprietorship, partnership or joint venture formed for the purpose of making a profit in which at least 51% of all classes of the shares or stock or other equitable securities are owned and operated by one or more persons who are economically disadvantaged because of their identification as members of the following groups who have suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control.

The individual(s) must have a proportionate interest and demonstrate active participation in the control, operation and management of the corporation's affairs.

HUBs are also identified as any business, other than a sole proprietorship, a joint venture or HUB subcontractor which is formed for the purpose of making a profit and is otherwise a legally recognized business organization under the laws of the State of Texas, provided that at least 51% of the assets and interest and 51% of any classes of stock and equitable securities are owned by one or more qualified HUBs Section 111 (B), Article IX, H.B.1, 74th Legislature.

Small Business Concerns (SBC)

Small Business Concerns (SBC) refers to small businesses, small woman owned businesses, small HUB Zone businesses, veteran owned small businesses, service-disabled veteran owned businesses and small disadvantaged businesses, hereby referred to as Small Business Concerns, with respect to subcontracting and/or the purchase of materials and supplies in support of Federal Contracts and other federally supported projects.

References: United States Small Business Administration

Obtaining Certification

To obtain State certification, complete and submit a HUB Certification Application. Allow 30 – 45 days after receipt to process the application.

The following entities offer reciprocity with the State of Texas when you have their certification and meet State certification requirements:

To obtain Federal Certification, complete and submit a Small Disadvantaged Business form. Once certification is obtained, contact us for a Procurement referral.


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