The Small Business Administration (SBA) administers the HUBZone program, which gives preference to participating small businesses located in areas with certain economic characteristics when those businesses seek contracts with the federal government. Under current law, an area can temporarily retain its status as a HUBZone for three years after it fails to meet the program’s criteria. S. 690 would increase that period to seven years.
Based on information from the SBA, CBO estimates that the costs to the SBA to update the rules for the program, which would be subject to the availability of appropriated funds, would not be significant.
Enacting S. 690 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting S. 690 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
S. 690 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.