---
kind: "section"
citation: "13 C.F.R. § 126.602"
title: "13"
number: "126.602"
heading: "Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance?"
url: "https://uscodex.org/cfr/13/126.602"
---

# §126.602. Must a certified HUBZone small business concern maintain the HUBZone employee residency percentage during contract performance?

- (a) A certified HUBZone small business concern that has been awarded a HUBZone contract must “attempt to maintain” (see [§ 126.103](/cfr/13/126.103.md)) 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)](/cfr/13/126.200.md?p=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](/cfr/13/126.503.md).

## Notes

### Amendments

[89 FR 102502, Dec. 17, 2024]

### Authority

Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a.

### Source

Source: 63 FR 31908, June 11, 1998, unless otherwise noted.

### Amendments

[89 FR 102502, Dec. 17, 2024]