North Carolina lawmakers eliminated the state’s Office for Historically Underutilized Businesses in the new state budget, cutting off an office that had connected women-, minority- and veteran-owned firms to state contracts since 1999. Now the North Carolina Department of Administration is holding a series of forums across the state to figure out what should take its place, starting with one at the International Civil Rights Center & Museum in Greensboro.
The office, known as HUB, had worked with more than 6,000 businesses, according to NCDOA, providing training, development resources and an easy-to-access vendor database, as WUNC News reports. Its closure came through Session Law 2026-41, also known as Senate Bill 257, which Governor signed on July 7, 2026, eliminating the office and repealing state statutes that had mandated minority business participation goals on public building projects, according to the UNC School of Government. The office had operated for 27 years after being established by executive order in 1999.
What the Numbers Show
The financial stakes are substantial. In fiscal year 2025, North Carolina state agencies spent nearly $13 billion on goods, services and construction, awarding over $928 million — or 7.22% — to HUB-certified businesses, per data compiled by Carolinas AGC. More than 6,000 businesses held active HUB certifications before lawmakers acted.
Small businesses represent 99.6% of all employers in North Carolina and generated 89.9% of the state’s net new jobs in recent SBA statistics, with small firms accounting for 99.3% of construction businesses, according to The Charlotte Post. Construction was one of the primary industries governed by the repealed statutory participation goals.
A Race-Neutral Replacement Takes Shape
In place of HUB, the North Carolina Small Business Enterprise Program now sits within the Division of Purchase and Contract inside NCDOA, according to the seed story’s reporting. Unlike its predecessor, the program is race- and gender-neutral, open only to for-profit businesses headquartered in the state with 100 or fewer employees and $1.5 million or less in net annual income after deducting cost of goods sold, per the UNC School of Government’s analysis of the budget bill…