The federal government is required by law to award a percentage of all contract dollars to small businesses. Set-aside programs are how they do it. If you qualify for one or more of these programs, you get access to contracts that larger businesses cannot compete for.
This is not a minor advantage. In FY2024, the federal government awarded over $176 billion to small businesses. A significant portion of that went through set-aside programs.
Here is a no-nonsense breakdown of every major set-aside program, who qualifies, and how to get certified.
What Is a Set-Aside?
A set-aside is a contract that is restricted to businesses in a specific category. When an agency "sets aside" a contract for 8(a) businesses, only certified 8(a) businesses can bid on it. Everyone else is locked out.
The government has spending goals for each category. Agencies are graded on whether they meet these goals, which creates real incentive for contracting officers to use set-asides.
General Small Business Set-Aside
Spending goal: 23% of all federal prime contract dollars
Eligibility:
- Must meet the SBA size standard for your NAICS code (usually based on revenue or employee count)
- Must be registered in SAM.gov
- Must self-certify as a small business in your SAM.gov profile
How it works: Any contract under $250,000 must be automatically set aside for small businesses if the contracting officer expects at least two qualified small businesses will bid. This is called the "Rule of Two."
Benefits:
- No certification application needed — just accurate SAM.gov registration
- Huge volume of opportunities
- Lower competition than full-and-open contracts
If you do nothing else, make sure your SAM.gov registration accurately reflects your small business status and correct NAICS codes. This alone opens the door to thousands of set-aside opportunities.
8(a) Small Disadvantaged Business (SDB) Program
Spending goal: 5% of federal prime contract dollars (recently increased from previous targets)
Eligibility:
- At least 51% owned and controlled by one or more socially and economically disadvantaged individuals
- Socially disadvantaged: Black, Hispanic, Native American, Asian Pacific, Subcontinent Asian Americans are presumed. Others can apply with evidence of social disadvantage.
- Economically disadvantaged: Personal net worth under $850,000 (excluding primary residence and business ownership)
- Business must be a small business under SBA size standards
- Business must have been in operation for at least two years
- Owner must demonstrate good character
Benefits:
- Sole-source contracts up to $4.5 million (services) or $7 million (manufacturing) — no competition required
- Access to 8(a) set-aside contracts (competitive among 8(a) firms only)
- Business development assistance from the SBA
- Mentoring through the SBA mentor-protege program
- Joint ventures with established firms
Duration: 9 years. You cannot re-apply after the term ends.
How to apply: Through SBA's certify.sba.gov portal. The process takes 90+ days in normal times, but processing times have increased in 2026 due to SBA staff reductions. Prepare thorough documentation — incomplete applications are the #1 cause of delays.
The honest take: The 8(a) program is the most powerful set-aside certification. Sole-source contracts alone make it worth the effort. If you qualify, apply.
HUBZone (Historically Underutilized Business Zone)
Spending goal: 3% of federal prime contract dollars
Eligibility:
- Small business by SBA size standards
- At least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, or an Indian tribe
- Principal office located in a HUBZone (check the SBA HUBZone map)
- At least 35% of employees must reside in a HUBZone
Benefits:
- Access to HUBZone set-aside contracts
- Sole-source contracts up to $4.5 million (services) or $7 million (manufacturing)
- 10% price evaluation preference on full-and-open contracts
How to apply: Through certify.sba.gov. Processing takes approximately 60-90 days.
The honest take: HUBZone is location-dependent. If your office happens to be in one, great. If not, do not move your office just for this certification — the 35% employee residency requirement is ongoing and audited. Check the HUBZone map first.
SDVOSB (Service-Disabled Veteran-Owned Small Business)
Spending goal: 3% of federal prime contract dollars
Eligibility:
- Small business by SBA size standards
- At least 51% owned and controlled by one or more service-disabled veterans
- Service-connected disability rating from the VA (any percentage)
- Veteran(s) must manage day-to-day operations and make long-term business decisions
Benefits:
- Access to SDVOSB set-aside contracts across all agencies
- Sole-source contracts up to $4.5 million (services) or $7 million (manufacturing)
- Particularly strong at the VA, which has its own SDVOSB program (Veterans First)
How to apply: Through SBA's VetCert portal (certify.sba.gov). Previously, the VA handled SDVOSB certification separately, but SBA now manages all SDVOSB certifications government-wide.
The honest take: If you are a service-disabled veteran, this is one of the strongest certifications available. The VA alone spends billions through SDVOSB set-asides. Combined with 8(a) if you also qualify, you have a significant competitive advantage.
WOSB / EDWOSB (Women-Owned Small Business / Economically Disadvantaged WOSB)
Spending goal: 5% of federal prime contract dollars
Eligibility for WOSB:
- Small business by SBA size standards
- At least 51% owned and controlled by one or more women who are U.S. citizens
- Women must manage day-to-day operations and make long-term business decisions
Additional eligibility for EDWOSB:
- Must meet all WOSB requirements
- Personal net worth under $850,000 (excluding primary residence and business ownership)
- Adjusted gross income averaged over 3 years must not exceed $400,000
- Fair market value of all assets must not exceed $6.5 million
Benefits:
- Access to WOSB/EDWOSB set-aside contracts in designated NAICS industries
- Sole-source contracts up to $4.5 million (services) or $7 million (manufacturing)
- EDWOSB has access to more NAICS industries than WOSB alone
How to apply: Through certify.sba.gov. You can also get certified through approved third-party certifiers.
The honest take: The WOSB program is limited to specific NAICS industries where women-owned businesses are underrepresented. Check whether your NAICS codes are eligible before applying. If they are, and you meet the EDWOSB economic thresholds, go for EDWOSB — it gives you access to more set-asides.
Comparison Table
| Program | Spending Goal | Sole-Source Limit | Key Requirement | Certification Time |
|---|---|---|---|---|
| Small Business | 23% | N/A | Meet SBA size standard | Self-certify |
| 8(a) SDB | 5% | $4.5M / $7M | Social + economic disadvantage | 90+ days |
| HUBZone | 3% | $4.5M / $7M | Office + 35% employees in HUBZone | 60-90 days |
| SDVOSB | 3% | $4.5M / $7M | 51% owned by service-disabled veteran | 60-90 days |
| WOSB/EDWOSB | 5% | $4.5M / $7M | 51% owned by women; EDWOSB has income limits | 60-90 days |
Can You Stack Certifications?
Yes. A business can hold multiple certifications simultaneously. For example, a service-disabled veteran-owned business located in a HUBZone that is also economically disadvantaged could qualify for SDVOSB, HUBZone, 8(a), and general small business set-asides. Each certification opens additional opportunities.
How to Find Set-Aside Contracts
Once certified, you need to actually find the set-aside opportunities. On SAM.gov, you can filter by set-aside type, but the search is unreliable and the alerts frequently miss opportunities. Read our guide on finding government contracts for a more effective approach.
For the best results, set up automated alerts that match your specific certifications and NAICS codes. Getting notified the day an opportunity drops — instead of discovering it three days before the deadline — is often the difference between winning and not bidding at all.
Bottom Line
Set-aside programs exist because the government genuinely wants small businesses to win federal work. The certifications take effort to obtain, but they are free and they provide concrete competitive advantages — including access to sole-source contracts that skip the competitive bidding process entirely.
If you qualify for any set-aside program, get certified. In a market where DOGE cuts are tightening competition, having restricted access to set-aside contracts is more valuable than ever.