# 13 C.F.R. § 126.602 (2026): Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_602 ## Section - **Citation:** 13 C.F.R. § 126.602 (2026) - **Heading:** Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 13 CFR: Business Credit and Assistance / Chapter I: SMALL BUSINESS ADMINISTRATION / Part 126: HUBZONE PROGRAM / Subpart F: Contracting With Certified HUBZone Small Business Concerns / § 126.602: § 126.602 Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance? ## Text (a) A certified HUBZone small business concern that has been awarded a HUBZone contract must “attempt to maintain” ( see § 126.103) having 35% of its employees residing in a HUBZone during the performance of any HUBZone contract. If a certified HUBZone small business concern is awarded a HUBZone contract within 12 months prior to the due date for its triennial recertification, then such concern must attempt to maintain compliance with the 35% HUBZone residency requirement at the time of such recertification. However, such a concern must have at least 35% of its employees residing in HUBZones at the time of each recertification thereafter, even if the concern is still performing that HUBZone contract. (b) For orders under indefinite delivery, indefinite quantity contracts (including orders under multiple award contracts), a certified HUBZone small business concern must “attempt to maintain” the HUBZone residency requirement during the performance of each order that is set aside for HUBZone small business concerns. (c) A certified HUBZone small business concern that is tribally-owned, and made the certification in § 126.200(c)(2)(ii) at the time of its HUBZone certification (or at the time of its most recent recertification), must have at least 35% of its employees engaged in performing a HUBZone contract residing within any Indian reservation governed by one or more of the concern's Indian Tribal Government owners, or residing within any HUBZone adjoining any such Indian reservation. (d) A certified HUBZone small business concern that has less than 20% of its total employees residing in a HUBZone during the performance of a HUBZone contract has failed to attempt to maintain the HUBZone residency requirement. Such failure will result in proposed decertification pursuant to § 126.503. [89 FR 102502, Dec. 17, 2024] ## Nearby sections - [13 C.F.R. § 126.600 (2026) § 126.600 What are HUBZone contracts?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_600.md) - [13 C.F.R. § 126.601 (2026) § 126.601 What additional requirements must a certified HUBZone small business concern meet to submit an offer on a HUBZone contract?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_601.md) - [13 C.F.R. § 126.602 (2026) § 126.602 Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_602.md) - [13 C.F.R. § 126.603 (2026) § 126.603 Does HUBZone certification guarantee receipt of HUBZone contracts?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_603.md) - [13 C.F.R. § 126.604 (2026) § 126.604 Who decides if a contract opportunity for HUBZone set-aside competition exists?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_604.md) - [13 C.F.R. § 126.605 (2026) § 126.605 What requirements are not available for HUBZone contracts?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_605.md) - [13 C.F.R. § 126.606 (2026) § 126.606 May a procuring activity request that SBA release a requirement from the 8(a) BD program for award as a HUBZone contract?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_606.md) - [13 C.F.R. § 126.607 (2026) § 126.607 When may a contracting officer set aside a requirement for certified HUBZone small business concerns?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_607.md) - [13 C.F.R. § 126.608 (2026) § 126.608 Are there HUBZone contract opportunities at or below the simplified acquisition threshold or micropurchase threshold?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_608.md) - [13 C.F.R. § 126.609 (2026) § 126.609 Can a HUBZone competition be limited or authorize preferences to small business concerns having additional socioeconomic certifications?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_609.md) - [13 C.F.R. § 126.610 (2026) § 126.610 May SBA appeal a contracting officer's decision not to make a procurement available for award as a HUBZone contract?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_610.md) - [13 C.F.R. § 126.611 (2026) § 126.611 What is the process for an appeal of a contracting officer's decision not to issue a procurement as a HUBZone contract?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_611.md) - [13 C.F.R. § 126.612 (2026) § 126.612 When may a contracting officer award sole source contracts to HUBZone small business concerns?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_612.md) - [13 C.F.R. § 126.613 (2026) § 126.613 How does a price evaluation preference affect the bid of a certified HUBZone small business concern in full and open competition?](https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_613.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T13_P126_S126_602. 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