Gov. Evers: Seeks Trump Administration approval for HUBZone designations to support small businesses, boost rural Wisconsin economies – WisPolitics

Report on the Petition for HUBZone Designation in Wisconsin to Advance Sustainable Development Goals

Executive Summary

The Governor of Wisconsin, in collaboration with the Wisconsin Economic Development Corporation (WEDC), has submitted a formal petition to the U.S. Small Business Administration (SBA). The petition requests the designation of several counties and census tracts as Historically Underutilized Business Zones (HUBZones). This strategic initiative is designed to drive inclusive economic growth, create decent work opportunities, and reduce inequalities, directly aligning with several United Nations Sustainable Development Goals (SDGs). The request covers Dunn and Waushara counties for new designation, Florence and Sawyer counties for redesignation, and specific census tracts in Douglas, Grant, Green, and Wood counties.

Alignment with Sustainable Development Goals (SDGs)

The HUBZone petition is a targeted effort to advance sustainable development within Wisconsin by addressing key economic and social challenges. The initiative’s objectives are in strong alignment with the following SDGs:

• SDG 1: No Poverty & SDG 10: Reduced Inequalities: The program aims to uplift economically challenged communities by providing small businesses with preferential access to federal contracts. This helps create higher-wage jobs and addresses income disparities, particularly in rural and underserved areas, thereby reducing economic inequality.
• SDG 8: Decent Work and Economic Growth: By enabling small businesses to compete for federal contracts, the designation directly promotes sustained, inclusive, and sustainable economic growth. It fosters job creation and supports entrepreneurship, contributing to full and productive employment and decent work for all.
• SDG 9: Industry, Innovation, and Infrastructure: The initiative supports the backbone of local economies—small- and medium-sized enterprises. This fosters resilient infrastructure and promotes inclusive and sustainable industrialization by helping local businesses in sectors like manufacturing expand and innovate.
• SDG 11: Sustainable Cities and Communities: The core goal is to build long-term, inclusive economic resilience in Wisconsin’s rural communities. Strengthening the local business ecosystem makes these communities more sustainable and economically robust.
• SDG 17: Partnerships for the Goals: This effort exemplifies a multi-stakeholder partnership, involving state government (Governor’s Office, WEDC), federal agencies (SBA), local governments, economic development organizations, and educational institutions to achieve common development goals.

County-Specific Analysis and SDG Impact

The petition outlines the specific economic challenges and the potential for sustainable development in each targeted area.

1. Dunn County: Despite a strong educational foundation with the University of Wisconsin–Stout, the county faces significant income disparities. HUBZone status would support local enterprises in securing federal contracts, directly contributing to SDG 8 by creating higher-wage jobs and fostering equitable economic growth (SDG 10).
2. Waushara County: The county is addressing job losses in key industrial sectors and a declining labor force. Federal support through the HUBZone program would foster entrepreneurship and attract new investment, aligning with SDG 8 and SDG 9 by diversifying the local economy and promoting sustainable industrial activity.
3. Sawyer County: Home to the Lac Courte Oreilles Band of Lake Superior Chippewa Indians, the county struggles with geographic isolation and low average incomes. Redesignation is critical for continuing to provide small businesses with the tools to compete, spurring job creation (SDG 8) and building a more resilient and equitable rural economy (SDG 10 & SDG 11).
4. Florence County: As one of the state’s most remote and least populated counties, it faces structural economic challenges. The HUBZone designation serves as a catalyst for long-term economic resilience, encouraging entrepreneurship and job creation in a region with limited private sector opportunities, thereby advancing SDG 1 and SDG 8.

Strategic Partnerships and Outlook

A broad coalition supports the HUBZone petition, demonstrating a strong commitment to SDG 17 (Partnerships for the Goals). Key partners are prepared to offer critical support:

• Wisconsin Economic Development Corporation (WEDC)
• Wisconsin’s Procurement Technical Assistance Center (PTAC)
• Small Business Development Centers (SBDCs)
• Regional and local economic development organizations

These organizations will provide technical assistance to help businesses navigate the HUBZone certification process, ensuring the benefits are maximized. While a previous request for Douglas County was rejected, the administration remains committed to leveraging federal programs to support rural economies. If approved, the new designations would remain in effect through at least July 1, 2028, providing a stable and predictable environment for local businesses to pursue growth, contributing to long-term, sustainable economic development across the designated regions.

SDGs Addressed in the Article

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 17: Partnerships for the Goals

Identified SDG Targets

1. SDG 8: Decent Work and Economic Growth

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.
     
     The article directly addresses this target by describing Governor Evers’ petition for a HUBZone designation. This initiative is explicitly designed to “support small businesses,” “drive economic revitalization, job creation, and small business growth,” and “foster entrepreneurship.” The entire effort is a development-oriented policy aimed at helping small businesses in “economically challenged communities” to grow.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.3: Increase the access of small-scale industrial and other enterprises… to financial services… and their integration into value chains and markets.
     
     The HUBZone program’s primary function, as stated in the article, is to allow “businesses in disadvantaged communities to compete for federal set-aside contracts” and “gain preferential access to federal contracting opportunities.” This directly increases the access of small businesses to a major market (federal government contracts), integrating them into a significant economic value chain.

3. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… economic or other status.
     
     The article highlights that the HUBZone designation is for “Historically Underutilized” and “disadvantaged communities.” It specifically mentions areas that are “rural and economically challenged,” “long been underserved,” and face “income disparities” (Dunn County), “geographic isolation and low average family income” (Sawyer County), and “structural economic challenges” (Florence County). The program aims to “level the playing field for small businesses and working families in rural Wisconsin,” directly promoting economic inclusion for these specific groups.

4. SDG 11: Sustainable Cities and Communities

   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
     
     The initiative is a clear example of regional development planning focused on strengthening rural economies. The petition targets specific rural counties (Dunn, Waushara, Florence, Sawyer) and census tracts to “bring much-needed investments to areas that have long been underserved.” This effort aims to build “long-term, inclusive economic resilience” in these communities, fostering positive economic links.

5. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
     
     The article describes a multi-level partnership to achieve these economic goals. It involves the state government (Gov. Tony Evers), a state agency (Wisconsin Economic Development Corporation – WEDC), the federal government (U.S. Small Business Administration – SBA), and local entities. The article notes the effort has “garnered broad support from local governments, economic development organizations, and educational institutions,” and that organizations like WEDC, PTAC, and SBDCs are prepared to provide assistance. This collaboration is a textbook example of a public-public and public-private partnership.

Implied Indicators for Measuring Progress

1. For Target 8.3 (Promote small- and medium-sized enterprises)

   • Number of federal contracts secured by businesses in HUBZones: The article states the goal is to “compete for federal set-aside contracts” and “secure federal contracts.” Tracking the number and value of these contracts would be a direct measure of success.
   • Number of jobs created: The initiative aims to spur “job creation” and create “higher-wage jobs.” Counting new positions in the designated areas would be a key indicator.
   • Growth of small businesses: The article mentions the goal is to help businesses “increase revenue, expand.” Measuring revenue growth and business expansion for participating companies would indicate progress.

2. For Target 9.3 (Increase access to markets)

   • Number of small businesses certified under the HUBZone program: The article mentions that organizations are ready to “help businesses navigate the HUBZone certification process.” The number of businesses that successfully get certified is a primary indicator of access to the program’s benefits.

3. For Target 10.2 (Promote economic inclusion)

   • Change in income levels: The petition for Dunn County is partly justified by “income disparities in its rural areas.” Sawyer County is noted for its “low average family income.” Measuring changes in average income in these designated zones would indicate if inequality is being reduced.
   • Level of new investment: The application for Waushara County states the designation would “attract new investment to the region.” Tracking capital investment in these areas would be a relevant indicator.

Summary of SDGs, Targets, and Indicators

Source: wispolitics.com