Startup USA Guide
Part B · Startup-relevant scheme

Federal Small Business Contracting Set-Asides (Set-Asides)

Small Business Administration

Market Access Growth / ScalingMarket Access & IP

A federal set-aside restricts a contract, or part of one, to a specific category of certified small business rather than opening it to full and open competition. The federal government targets 23% of prime contract dollars to small businesses overall, with sub-goals for each certification category.

Type of support
Market Access
Best suited for
Growth / Market Access
Headline amount
Sole-source contracts up to $7M
How much
Sole-source up to $4.5-7M; set-aside bids
Source
SBA — Set-aside contracting ↗

Objectives

Give small, disadvantaged, minority-, women-, veteran-, and HUBZone-located businesses a realistic path into a federal contracting market that would otherwise be dominated by large, established contractors.

Who can apply?

  • 8(a) Business Development: small business owned by a socially and economically disadvantaged individual; a 9-year program with defined revenue/net-worth caps.
  • HUBZone: principal office and a required share of employees located in a Historically Underutilized Business Zone.
  • WOSB/EDWOSB: at least 51% owned and controlled by women (economically disadvantaged for EDWOSB).
  • SDVOSB: at least 51% owned and controlled by a service-disabled veteran.
  • All require an active SAM.gov registration with a Unique Entity Identifier; multiple certifications can be held simultaneously (e.g., 8(a) + SDVOSB).

What do you get?

  • 8(a): sole-source contracts up to $7M (manufacturing) or $4.5M (services), plus competitive 8(a) set-asides and Mentor-Protégé program access.
  • HUBZone: a 10% price-evaluation preference in full-and-open competitions, plus sole-source contracts up to $4.5M.
  • WOSB/SDVOSB: dedicated set-aside competitions restricted to certified firms in relevant industries.

How to apply

Register on SAM.gov first, then apply for the relevant certification(s) through SBA's certification portal — certification is free; be cautious of paid "certification services."

Go to official portal