“The Small Business Administration (SBA) has once again updated its HUBZone FAQs—this time with welcome changes for HUBZone firms with principal offices located in Redesignated Areas and / or Qualified Disaster Areas (QDA). The latest FAQs… state that they were effective June 24, 2021, but we saw them for the first time on SBA’s website earlier this month. Below are our top five takeaways from the latest FAQs.
- While SBA’s FAQs continue to state that a firm located in a QDA or home office cannot take advantage of SBA’s long-term investment rule, the FAQs now confirm that SBA will allow a firm located in a QDA or home office to use the long-term investment rule if the firm demonstrates that it made a long-term investment in its principal office between December 26, 2019, and June 30, 2021, in reliance on SBA’s final rule and prior guidance.
- SBA will grandfather in HUBZone firms that recertified between December 26, 2019, and June 30, 2021, and claimed legacy HUBZone employees who resided in Redesignated Areas and / or QDAs during the 360-day period necessary to qualify as a legacy HUBZone employee.
- SBA is providing a grace period, until December 31, 2021, during which HUBZone firms may count legacy HUBZone employees who lived in a Redesignated Area and / or QDA during the 360-day period necessary to qualify as a legacy HUBZone employee. However, starting January 1, 2022, HUBZone firms will not be able to count legacy HUBZone employees if the employees resided in a Redesignated Area and / or QDA at any time during the relevant 360-day period…” Read the full article here.
Source: SBA Issues New HUBZone Guidance and Map Updates – By Jon Williams and Anna R. Wright, August 24, 2021. PilieroMazza.
