Committee on Small Business. Ordered to be reported with an amendment in the nature of a substitute favorably.
Congressional Research Service
Official summary
Version 00 · Introduced in Senate · Jan 28, 1997
HUBZone Act of 1997 - Amends the Small Business Act (the Act) to define the following terms for purposes of this Act: (1) historically underutilized business (HUB) zones; (2) small business concerns located in such zones; and (3) qualified areas and qualified small businesses (QSBs) located in such areas. Provides qualification requirements for small businesses to receive Federal contracting assistance under the Act for locating in or relocating to HUB zones (distressed urban and rural communities which have suffered economic decline). Includes within such requirements that not less than 50 percent of the contract performance incurred for services or supplies be expended for employees or for the manufacturing of supplies in HUB zones. Requires a certification from a small business to the Administrator of the Small Business Administration (SBA) with respect to such requirements. Authorizes the Administrator to change the above percentage. Directs the Administrator to establish and maintain a list of QSBs located in HUB zones. Establishes within the SBA a program to provide for Federal contracting assistance to QSBs located in HUB zones. Requires the head of a Federal procuring agency to provide a contract set-aside (preference) to a QSB if such agency head determines that two or more QSBs will submit offers and that the award can be made at a fair market price. Allows sole source contracts to be awarded to a QSB if it submits a reasonable and responsive offer and the Administrator determines it to be a responsible contractor. Limits the value of sole source contracts to $5 million. Provides a price evaluation preference to a QSB if its offer is not more than ten percent higher than the other offeror, as long as the other offeror is not a small business. Directs the Administrator to enforce the requirements of this Act and to verify the qualification requirements of QSBs, including the use of random inspections. Provides penalties. Makes technical and conforming amendments to the Act in order to provide QSBs under this Act with a higher preference for Federal contracting assistance than small businesses owned and controlled by socially and economically disadvantaged individuals. Sets forth as Government-wide goals for the awarding of Government contracts to QSBs a goal in FY 1998 of one percent of the total value of all prime contracts awarded, with an increase of one percent each year to four percent for FY 2001 and thereafter.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Sep 8, 2026. Consult Congress.gov for the current record.
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