Federal Contracting Guide

Federal Set-Aside Contracts — Plain English

The government reserves a portion of its contracts specifically for small and disadvantaged businesses. If you qualify, you're competing against a much smaller field.

The Basics

What Is a Set-Aside?

When a federal agency needs to buy something — IT services, construction work, office supplies, food service — they first decide whether to open it to all bidders or to reserve it for a specific type of business. A "set-aside" means the contract is reserved. Large corporations cannot bid on it. Only businesses that meet the set-aside criteria can compete.

This is not charity. It is federal policy — specifically the Small Business Act, which requires federal agencies to meet annual goals for contracting with small and disadvantaged businesses. In practice, it means billions of dollars in contracts every year that large companies cannot touch.

The Six Types

Set-Aside Programs Explained

SB
Small Business Set-Aside
Who Qualifies
Any business that meets the SBA size standard for its NAICS code — usually defined by annual revenue or number of employees. Most small businesses qualify without any special certification.
The most common set-aside. If your business is "small" by government standards (which are more generous than you might think — up to $47M revenue for many service businesses), you qualify automatically just by being registered in SAM.gov.
How to Get It
Register in SAM.gov. No special certification needed — just confirm your size on your registration.
SBA Size Standards →
SDVOSB
Service-Disabled Veteran-Owned Small Business
Who Qualifies
Veterans with a service-connected disability rating from the VA, who own and control at least 51% of the business.
If you served and have a VA disability rating — any rating, even 0% — and you own your business, you may qualify. The VA and DoD set aside specific contracts exclusively for SDVOSBs. These are competitions where non-veteran-owned businesses simply cannot bid.
How to Get It
Apply for verification through the SBA's Veteran Small Business Certification (VetCert) program.
VetCert Program →
VOSB
Veteran-Owned Small Business
Who Qualifies
Veterans (no disability requirement) who own and control at least 51% of the business.
Similar to SDVOSB but open to all veterans, not just those with service-connected disabilities. Primarily used for VA contracts. If you're a veteran business owner, this is worth having alongside your SDVOSB certification if applicable.
How to Get It
Apply through SBA VetCert.
SBA VetCert →
WOSB
Women-Owned Small Business
Who Qualifies
Women who own and control at least 51% of a small business. An additional tier — EDWOSB (Economically Disadvantaged WOSB) — applies to women who also meet income/asset thresholds.
Billions in federal contracts are set aside for women-owned businesses each year. The WOSB program applies to specific NAICS codes where women-owned businesses are underrepresented. If you're a woman who owns your business, this certification opens doors that are closed to most competitors.
How to Get It
Apply through the SBA's certification program at certify.sba.gov.
certify.sba.gov →
8(a)
SBA 8(a) Business Development Program
Who Qualifies
Small businesses owned and controlled by socially and economically disadvantaged individuals. This includes many minority groups, but is not limited to race — it considers social and economic disadvantage.
The 8(a) program is one of the most powerful certifications in federal contracting. It gives you access to sole-source contracts — meaning the agency can award you a contract without any competition at all, up to $4.5M for services and $7M for manufacturing. You stay in the program for 9 years.
How to Get It
Apply through SBA. The process is thorough — expect 90 days and detailed financial documentation.
SBA 8(a) Program →
HUBZone
Historically Underutilized Business Zone
Who Qualifies
Small businesses located in designated HUBZone areas (economically distressed communities) AND employ at least 35% of their workforce from HUBZone areas.
HUBZone is about location, not ownership characteristics. If your business is physically located in a designated underutilized area — which includes many rural counties, tribal lands, and urban distressed zones — you may qualify. HUBZone businesses get price evaluation preferences AND access to set-aside contracts.
How to Get It
Check if your address is in a HUBZone using the SBA map, then apply at certify.sba.gov.
HUBZone Program → HUBZone Map →
Stack Your Certifications
Yes — and you should. Many businesses qualify for multiple set-asides. A veteran-owned, women-owned small business in a HUBZone area could potentially hold SDVOSB, WOSB, and HUBZone certifications simultaneously. Each certification opens different contract opportunities. There is no penalty for holding multiple certifications.
Search Smarter

When you search SAM.gov solicitations on govprocure, you can filter by set-aside type. If you hold an SDVOSB certification, filter to SDVOSB — and you'll only see contracts your competition can't bid on. That is a fundamentally different search than what most businesses run.

Search by Set-Aside Type →
Free Resources

Free Help Getting Certified

Getting certified takes paperwork, but free help is available: