San Antonio, December 9, 2025
The Texas Comptroller’s office has restructured its Historically Underutilized Business (HUB) Program, leading to the revocation of certifications for numerous minority- and women-owned small businesses. This change aims to prioritize veteran-owned firms, leaving many entrepreneurs uncertain about their future opportunities. Established to assist underrepresented businesses in securing state contracts, the HUB Program’s abrupt modifications have sparked concern about support for these entrepreneurs in Texas.
San Antonio, Texas
Texas has restructured its Historically Underutilized Business (HUB) Program, removing certification from numerous women and minority-owned small businesses, leading to confusion and concern among affected owners.
In recent developments, the Texas Comptroller’s office announced the implementation of emergency rules that significantly narrow the scope of the HUB Program, which was originally designed to assist minority- and women-owned businesses in gaining access to state contracts. This change has resulted in the revocation of certifications for many businesses that previously qualified, effectively removing them from the HUB vendor directory.
Comptroller Kelly Hancock indicated that this decision was made to place a greater emphasis on supporting veteran-owned businesses, highlighting their substantial contributions to the country. However, this shift has left many women and minority small business owners grappling with uncertainty regarding their future opportunities and the overarching impact on their operations within the Texas economic landscape.
The Importance of the HUB Program
The HUB Program was established by the Texas Legislature with the intention of supporting minority- and women-owned businesses by offering certification and encouraging state agencies to include these businesses in their procurement processes. Prior to the recent changes, the program boasted 15,762 certified HUBs, with 19% successfully participating in state contracts as either prime contractors or subcontractors, receiving 11.02% of total statewide expenditures.
While currently initiated state contracts will remain unaffected by these new rules, the abrupt nature of the changes has ignited a wave of concern regarding the future viability of the HUB program and the extent of available support for minority and women entrepreneurs across Texas.
Key Features of the HUB Program Changes
| Feature | Details |
|---|---|
| Program Restructuring | The Texas Comptroller’s office implemented emergency rules that significantly narrow the scope of the HUB Program, leading to the revocation of certifications for many businesses that previously qualified. |
| Impact on Certified Businesses | Many women and minority small business owners have had their certifications revoked and have been removed from the HUB vendor directory, leading to confusion and concern among affected owners. |
| Rationale for Change | Comptroller Kelly Hancock stated that the decision was made to prioritize veteran-owned businesses, emphasizing their contributions to the nation. |
| Effect on Existing Contracts | State contracts initiated before the announcement are not affected by the new rules and will continue as planned. |
| Future of the Program | The sudden change has raised questions about the future of the program and the support available for minority and women entrepreneurs in Texas. Further details have not been provided at this time. |
Frequently Asked Questions (FAQ)
What is the HUB Program?
The Historically Underutilized Business (HUB) Program was established by the Texas Legislature to support minority- and women-owned businesses in securing state contracts by providing certification and setting participation goals for state agencies.
Why were businesses removed from the HUB Program?
The Texas Comptroller’s office implemented emergency rules that significantly narrowed the scope of the HUB Program, leading to the revocation of certifications for many businesses that previously qualified.
Who is affected by this change?
Women and minority small business owners who were previously certified under the HUB Program are now removed from the vendor directory and are no longer eligible for the program’s benefits.
What is the rationale behind this decision?
Comptroller Kelly Hancock stated that the decision was made to prioritize veteran-owned businesses, emphasizing their contributions to the nation.
Will existing state contracts be impacted?
No, state contracts initiated before the announcement are not affected by the new rules and will continue as planned.
What is the future of the HUB Program?
The sudden change has raised questions about the future of the program and the support available for minority and women entrepreneurs in Texas. Further details have not been provided at this time.
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