# 13 CFR § 126.900: What are the requirements for representing HUBZone status, and what are the penalties for misrepresentation? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-13-126.900 ## Section - **Citation:** 13 CFR § 126.900 - **Heading:** What are the requirements for representing HUBZone status, and what are the penalties for misrepresentation? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 13—Business Credit and Assistance > CHAPTER I—SMALL BUSINESS ADMINISTRATION > PART 126—HUBZONE PROGRAM > Subpart I—Penalties ## Text (a) Presumption of Loss Based on the Total Amount Expended. In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to HUBZone small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a HUBZone small business concern willfully sought and received the award by misrepresentation. (b) Deemed Certifications. The following actions shall be deemed affirmative, willful and intentional certifications of HUBZone status: (1) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to HUBZone small business concerns. (2) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a HUBZone small business concern. (3) Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as a HUBZone small business concern. (c) Signature Requirement. Each offer, proposal, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the HUBZone status of a business concern seeking the Federal contract, subcontract or grant. An authorized official must sign the certification on the same page containing the HUBZone status claimed by the concern. (d) Limitation of Liability. Paragraphs (a)-(c) of this section may be determined not to apply in the case of unintentional errors, technical malfunctions, and other similar situations that demonstrate that a misrepresentation of HUBZone status was not affirmative, intentional, willful or actionable under the False Claims Act, 31 U.S.C. §§ 3729, et seq. A prime contractor acting in good faith should not be held liable for misrepresentations made by its subcontractors regarding the subcontractors' HUBZone status. Relevant factors to consider in making this determination may include the firm's internal management procedures governing HUBZone status representations or certifications, the clarity or ambiguity of the representation or certification requirement, and the efforts made to correct an incorrect or invalid representation or certification in a timely manner. An individual or firm may not be held liable where government personnel have erroneously identified a concern as a HUBZone small business concern without any representation or certification having been made by the concern and where such identification is made without the knowledge of the individual or firm. (e) Penalties for Misrepresentation. (1) Suspension or debarment. The SBA suspension and debarment official or the procuring agency's suspension and debarment official may suspend or debar a person or concern for misrepresenting a firm's status as a HUBZone small business concern pursuant to the procedures set forth in 48 CFR subpart 9.4. (2) Civil Penalties. Persons or concerns are subject to severe penalties under the False Claims Act, 31 U.S.C. 3729-3733, the Program Fraud Civil Remedies Act, 31 U.S.C. 3801-3812, and any other applicable laws or regulations, including 13 CFR part 142. (3) Criminal Penalties. Persons or concerns are subject to severe criminal penalties for knowingly misrepresenting the HUBZone status of a concern in connection with procurement programs pursuant to section 16(d) of the Small Business Act, 15 U.S.C. 645(d), as amended, 18 U.S.C. 1001, 18 U.S.C. 287, and any other applicable laws. Persons or concerns are subject to criminal penalties for knowingly making false statements or misrepresentations to SBA for the purpose of influencing any actions of SBA pursuant to section 16(a) of the Small Business Act, 15 U.S.C. 645(a), as amended, including failure to correct “continuing representations” that are no longer true. (4) If SBA discovers that false or misleading information has been knowingly submitted by a small business concern in order to obtain or maintain HUBZone certification, SBA will propose the firm for decertification. In addition, SBA will refer the matter to the SBA Office of Inspector General for review and may recommend that Government-wide debarment or suspension proceedings be initiated. [78 FR 38820, June 28, 2013, as amended at 81 FR 31492, May 19, 2016; 89 FR 102505, Dec. 17, 2024] ## Nearby sections - [13 CFR § 126.100 § 126.100 What is the purpose of the HUBZone program?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.100.md) - [13 CFR § 126.101 § 126.101 Which government departments or agencies are affected directly by the HUBZone program?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.101.md) - [13 CFR § 126.102 § 126.102 What is the effect of the HUBZone program on the section 8(d) subcontracting program?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.102.md) - [13 CFR § 126.103 § 126.103 What definitions are important in the HUBZone program?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.103.md) - [13 CFR § 126.104 § 126.104 How can a Governor petition for the designation of a Governor-designated cover area?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.104.md) - [13 CFR § 126.105 § 126.105 How often will the HUBZone Map be updated?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.105.md) - [13 CFR § 126.200 § 126.200 What requirements must a concern meet to be eligible as a certified HUBZone small business concern?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.200.md) - [13 CFR § 126.201 § 126.201 Who does SBA consider to be an owner of a HUBZone small business concern?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.201.md) - [13 CFR § 126.202 § 126.202 Who does SBA consider to control a HUBZone small business concern?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.202.md) - [13 CFR § 126.204 § 126.204 May a HUBZone small business concern have affiliates?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.204.md) - [13 CFR § 126.205 § 126.205 May participants in other SBA programs be certified as HUBZone small business concerns?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.205.md) - [13 CFR § 126.206 § 126.206 May nonmanufacturers be certified as HUBZone small business concerns?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.206.md) - [13 CFR § 126.207 § 126.207 Do all of the offices or facilities of a certified HUBZone small business concern have to be located in a HUBZone?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.207.md) - [13 CFR § 126.300 § 126.300 How may a concern be certified as a HUBZone small business concern?](https://www.frixlaw.com/law-library/statutes/ecfr-13-126.300.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-13-126.900. Check the current official text before relying on it. Not legal advice.