HUBZone and SBA-Certified Firms See New Opportunities Amid Policy Shifts

The winds are shifting for American manufacturers, especially small businesses aiming to sell their products to the federal government. With ongoing “Made in America” initiatives under both the Trump and Biden Administrations, the spotlight is squarely on domestically produced goods. And for small businesses, especially those with SBA Certifications, this could be the opportunity of a generation.

The Small Business Manufacturing Landscape

Let’s set the scene:

There are currently 16,535 small businesses listed in the Dynamic Small Business Search (DSBS) system that are registered to do business with the federal government in the manufacturing sector.

According to the Small Business Administration (SBA), small manufacturing firms earn an estimated $32 Billion per year in federal contract awards. From that, roughly $7.1 Billion in product sales are routed through the GSA Schedule System, with 4,058 small business vendors participating.

While many vendors are resellers, a significant portion are true manufacturers — meaning they make what they sell. And for those companies, the current regulatory and market environment is becoming more favorable than ever.

Certified Manufacturing Firms at a Glance

SBA Certification Type - # of Manufacturing Firms

8(a) Certified – 690

HUBZone – 1417

VOSB – 229

SDVOSB – 681

WOSB – 592

EDWOSB – 153

HUBZone Firms: A Strategic Advantage

Of all SBA-certified manufacturers, HUBZone firms make up the largest slice, about 38%. This isn’t a coincidence. Many businesses intentionally choose HUBZone locations before launching, knowing that HUBZone Certification provides a 10% price evaluation preference in federal bids, a major advantage.

Currently, there are 197 HUBZone manufacturers on the GSA Schedule, accounting for roughly $640 Million in annual federal sales. That breaks down to about $3.2 Million per firm per year, nearly double the average for other small business product vendors on the GSA Schedule.

Policy Changes: Buy American Rule

Both the Trump and Biden Administrations have pushed to reshore U.S. manufacturing, but one of the most impactful changes has been the Buy American Rule, introduced by the Biden Administration.

New Domestic Content Thresholds:

-60% in 2023

-65% in 2024

-75% by 2029 (*target)

This rule increases the percentage of a product's components that must be American-made to qualify under the Buy American Act (BAA) — making it tougher for globally sourced firms to compete and giving domestic manufacturers a stronger foothold.

GSA’s Crackdown on Non-Compliant Products

In June of 2022, the GSA ran a pilot test using its Verified Products Portal (VPP) to validate product origins and vendor authenticity. The result?

75,000 products were removed from the GSA Advantage platform, most due to being unauthorized or non-compliant with origin standards.

This is just the beginning. With increasing interest in using AI-powered supply chain monitoring, we can expect even stricter enforcement moving forward. This also aligns with a broader federal trend, encouraging more purchases through the GSA Schedule System.

What This Means for You

If you're a HUBZone-certified manufacturer, or considering becoming one, now is the time to explore getting on GSA Schedule. With rising demand for American-made goods, favorable set-aside rules, and growing federal scrutiny of foreign content, the opportunity is massive.

Ready to Explore Federal Sales?

If you are, I always recommend contacting an industry expert such as Advance GSA or ez8a to see if your small business qualifies for a GSA Schedule or another SBA certification. They’ll walk you through the process, eligibility, and how to maximize your success selling to the federal government. Neither charge for an initial consultation.