What is HUB Certification in Texas?
A “Historically Underutilized Business” is an entity with its principal place of business in Texas, and is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American and/or American woman who resides in Texas and has a proportionate interest and demonstrate active participation in the control, operations and management of the entity’s affairs.
Why should I get my business HUB certified?
In accordance with Texas Administrative Code §111.13, each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services), and commodities purchases. Two-thirds of bids for each government contract for construction, services, or commodities purchases must come from HUBs. Achieving HUB certification means easier access and greater exposure to government contract opportunities.
Benefits of HUB Certification
- Certification is valid for 4 years, provided that the business continues to meet the eligibility requirements.
- Your business is registered in the Texas Comptroller’s web-based HUB Directory. State agencies use the HUB Directory in conjunction with the Comptroller’s Centralized Master Bidders List (CMBL) to solicit bids from certified HUBs for state purchasing and public works contracts. Prime contractors also use the HUB Directory to identify HUBs to whom they will send notification of their subcontracting opportunities.
- Increased exposure to the general public, as well as other entities who have a supplier diversity program and are searching for minority and woman-owned businesses.
How do I get my business HUB certified?
Businesses seeking certification as a HUB are required to complete a HUB certification application and submit it along with supporting documentation. The application must be certified and sworn to under oath. If your business has been previously certified with another local government or nonprofit organization, you may be eligible to receive HUB certification by way of a certification memorandum of agreement between the Statewide HUB Program and the other organization.
Contact us to start the process today. When dealing with any government agency certification, the process can be lengthy, and the pitfalls many. We help make sure you get it done right the first time so that you can enjoy your new government contract opportunities as soon as possible.
Texas HUB Certification Law
For more information regarding Texas HUB Certification law please see Texas Administrative Code §§20.11-20.28 and Texas Government Code Ch. 2161.
Justin Copeland is a startup lawyer who enjoys representing businesses and individuals in a variety of transactional matters. He can assist you in any stage of the process, from formation, seed and venture financing, franchising, mergers and acquisitions, to business purchase and sales transactions. He also advises clients on a broad range of business matters, including contracts, real estate transactions, employment matters, internet law, and intellectual property (copyrights, trademarks, and trade secrets). His clients include companies in the software, technology, energy, real estate, insurance, healthcare, manufacturing, construction, advertising & marketing, and retail sectors. 
