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Lindley Estes is a business writer for The Free Lance-Star and This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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City’s HUBZone status drawing attention

ILM Corp.’s new headquarters on Lafayette Boulevard in Fredericksburg. The company moved there in large part due to the city being part of the federal government’s HUBZone program.

Many companies that do work for the federal government have expressed interest in moving to Fredericksburg because of a recent change that made the entire city a Historically Underutilized Business Zone, city economic development officials say.

Three of the city’s five census tracts have been a part of the U.S. Small Business Administration’s HUBZone program for some time. The remaining two tracts — an area that includes much of downtown, the University of Mary Washington and a stretch of Lafayette Boulevard south of the Blue and Gray Parkway — were added to the program effective Oct. 1.

The HUBZone program aims to help businesses in areas with lower incomes and higher unemployment rates. HUBZone-certified firms can get a competitive advantage on federal contracts.

Having all of Fredericksburg included in the program has simplified the decision-making process of companies interested in locating their principal office here, said Assistant Economic Development Director Richard Tremblay. It’s also made it easier to satisfy the program’s requirement that 35 percent of a company’s employees must live in a HUBZone.

Tremblay said dozens of people have attended city workshops on the HUBZone program or spoken to his office about it. He said many of the firms have expressed an interest in locating downtown.

Jason Cohen recently made that decision for his ILM Corp., which digitizes and secures sensitive documents for federal and other clients. Cohen moved his company earlier this year from Industrial Court in Spotsylvania County to a 5,000-square-foot building his family purchased and renovated at 600 Lafayette Blvd. that used to be an auto service station.

Cohen made the move in large part because of the city’s status as a HUBZone. Rappahannock Electric Cooperative is now leasing ILM’s 6,000-square-foot former home.

Jayne Armstrong, Richmond district director for the U.S. Small Business Administration, attended an event held Wednesday to congratulate Cohen on his company’s relocation to Fredericksburg and designation as a HUBZone company. City Mayor Mary Katherine Greenlaw, economic development officials, representatives from fellow Fredericksburg HUBZone company Marstel-Day and people who helped ILM with the relocation also attended.

Though the entire Fredericksburg region has a low jobless rate and an economy that routinely outperforms that of the state and nation, the city itself typically registers higher unemployment rates and lower incomes.

That makes Fredericksburg especially appealing to HUBZone-certified companies looking for a home, said Amy LaMarca, who serves on the city’s Economic Development Authority and is director of business development for Affinity Fidelis Consulting and Technologies LLC, a government contractor located in the city that is working on its HUBZone certification. She noted that many HUBZone communities are in more impoverished regions that aren’t as well-located as Fredericksburg.

A stretch of Spotsylvania bordered roughly by State Route 3, Harrison Road and Salem Church Road also recently joined the HUBZone program. The designation will last at least eight years and could be extended beyond that time depending on how jobless rates and area incomes look five years from now.

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