Government agencies are legally required to set aside a portion of their contracting dollars for small businesses. These set-aside contracts are one of the most powerful ways to break into federal contracting—if you qualify.
This guide will walk you through the main types of set-asides and what you need to do to become eligible.
What Are Small Business Set-Asides?
A set-aside is a federal contract reserved exclusively for small businesses. In some cases, these contracts are only open to certified businesses in specific categories like woman-owned, veteran-owned, or disadvantaged businesses.
Agencies use them to meet diversity, equity, and small business participation goals.
1. General SBA Size Standards
Even if you’re not certified in a special category, you can still qualify as a small business based on your size.
How size is measured:
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Annual revenue (in millions), or
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Number of employees, depending on the NAICS code
Use the SBA’s official tool here.
Key Requirements:
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Be independently owned and operated
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Located and operating in the United States
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Not dominant in your field on a national basis
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Fall under the size threshold for your NAICS code
Tip: You don’t need to apply for a general small business designation—it’s automatically recognized when you register in SAM.gov with a qualifying size.
2. WOSB & EDWOSB (Woman-Owned Small Business)
The WOSB program helps women-owned businesses compete in industries where they’ve been historically underrepresented.
Requirements:
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At least 51% owned and controlled by women
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Women must be U.S. citizens
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Women must manage daily operations and long-term decisions
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Meet the small business size standard for the primary NAICS
EDWOSB (Economically Disadvantaged WOSB):
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Same as WOSB, plus financial limits:
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Personal net worth under $850,000
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Adjusted gross income under $400,000
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Total assets under $6.5 million
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3. SDVOSB (Service-Disabled Veteran-Owned Small Business)
Reserved for businesses owned by veterans who were disabled in service.
Requirements:
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At least 51% owned and controlled by one or more service-disabled veterans
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Veteran(s) must control daily operations and strategic decisions
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Service-connected disability must be verified by the VA
4. HUBZone (Historically Underutilized Business Zone)
This program supports businesses located in economically distressed areas.
Requirements:
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Principal office must be in a designated HUBZone
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At least 35% of employees must live in a HUBZone
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Business must be at least 51% owned by U.S. citizens, a community development corp., agricultural co-op, or Indian tribe
5. 8(a) Business Development Program
Designed to help socially and economically disadvantaged entrepreneurs.
Requirements:
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51% owned and controlled by U.S. citizens who are socially AND economically disadvantaged
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Business must be in operation for at least 2 years
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Owners must show good character and potential for success
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Meet small business size standards
Socially Disadvantaged Groups:
Presumed for individuals from certain minority groups (e.g., Black, Hispanic, Native American, Asian Pacific), but others may qualify with evidence of bias.
Economically Disadvantaged:
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Personal net worth under $850,000
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Income under $400,000
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Assets under $6.5 million
What to Do Next
Here’s how to start qualifying for set-asides:
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Determine which programs you qualify for (use checklists or quizzes)
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Gather your documentation (proof of ownership, finances, employee count, etc.)
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Register in SAM.gov
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Apply for certification at certify.sba.gov or veterans.certify.sba.gov
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Create a strong DSBS profile to help contracting officers find you
Final Thoughts
Set-aside programs exist to level the playing field for small and disadvantaged businesses. If you qualify, they can unlock massive contracting opportunities—including sole-source contracts and limited-competition bids.
Need help navigating the process? Reach out for support with your SAM registration or SBA certifications.