What is a small business set-aside?

A small business set-aside is a federal contract that is reserved exclusively for small businesses. Contracting officers must set aside contracts for small businesses when they expect at least two qualified small businesses will submit offers at fair market prices. Set-asides give small businesses a chance to compete without going up against large corporations.

What are SDVOSB set-aside requirements?

To qualify for Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides, the business must be at least 51% owned and controlled by one or more service-disabled veterans. The veteran must have a service-connected disability rated by the VA. The business must be verified through the SBA's VetCert program (formerly VA CVE). SDVOSB set-asides are available across all federal agencies.

What is a federal set-aside contract?

A federal set-aside contract is a government contract reserved for a specific category of businesses, typically small businesses or socially/economically disadvantaged businesses. The federal government is required to award at least 23% of prime contract dollars to small businesses. Set-aside categories include Small Business, 8(a), SDVOSB, WOSB/EDWOSB, and HUBZone.

What types of set-aside contracts are there?

The main types of federal set-aside contracts are: Total Small Business Set-Aside (open to all qualifying small businesses), 8(a) Business Development (for socially and economically disadvantaged businesses), SDVOSB (Service-Disabled Veteran-Owned Small Business), WOSB/EDWOSB (Women-Owned Small Business), and HUBZone (businesses in Historically Underutilized Business Zones). Each program has specific eligibility requirements and certification processes.

How do I find set-aside contracts?

You can find set-aside contracts on SAM.gov by filtering contract opportunities by set-aside type. Use the 'Set-Aside' filter to narrow results to your specific program (SDVOSB, 8(a), WOSB, HUBZone, etc.). Tools like GovTrove make this easier by translating set-aside codes into plain English and letting you filter by multiple set-aside types at once.

Federal Set-Aside Contracts Explained: SBA, SDVOSB, 8(a), WOSB, HUBZone (2026 Guide)

The federal government is the largest buyer of goods and services in the world, and a significant portion of those contracts are reserved exclusively for small businesses. These reserved contracts are called set-asides, and understanding how they work is one of the most important steps in building a successful government contracting business.

If you've ever browsed SAM.gov and wondered what all those set-aside abbreviations mean — or whether your business qualifies — this guide breaks it all down.

What Is a Set-Aside?

A set-aside is a federal contracting mechanism that restricts competition for a contract to a specific group of businesses. The Small Business Administration (SBA) establishes the criteria, and contracting officers apply them when posting opportunities on SAM.gov.

The federal government has a statutory goal to award at least 23% of all prime contract dollars to small businesses. Set-asides are the primary tool for reaching that goal. For small businesses, this means less competition from large defense contractors and a more level playing field.

Set-asides don't guarantee you'll win — but they dramatically reduce the field of competitors you're up against.

Total Small Business Set-Asides

The most common type of set-aside simply requires that all bidders qualify as small businesses under the applicable NAICS code size standard. If your company meets the SBA's size standard for the industry in question, you're eligible to compete.

Size standards vary by industry. For most professional services, the threshold is based on average annual revenue. For manufacturing, it's typically based on employee count. Not sure which NAICS code applies to your business? Use our NAICS Code Finder to look it up. You can also browse active small business set-aside contracts.

8(a) Business Development Program

The 8(a) program is designed for small businesses owned by socially and economically disadvantaged individuals. Participants gain access to sole-source contracts (up to $4.5 million for goods and services, $7 million for manufacturing), mentorship, and management and technical assistance.

The program lasts nine years with a transitional stage in the final four years
Businesses must be at least 51% owned and controlled by socially and economically disadvantaged individuals
There are net worth and income limitations for the disadvantaged owners
The business must demonstrate potential for success

8(a) set-asides on SAM.gov are marked with codes like SBA or 8A. These contracts can only be competed among certified 8(a) firms, which typically means a smaller pool of competitors. Browse active 8(a) contract opportunities.

Service-Disabled Veteran-Owned Small Business (SDVOSB)

SDVOSB set-asides are reserved for small businesses owned and controlled by service-disabled veterans. The federal government has a goal of awarding at least 3% of all prime contracting dollars to SDVOSBs.

To qualify, the business must be at least 51% owned by one or more service-disabled veterans, and the management and daily operations must be controlled by one or more service-disabled veterans. The SBA now manages the certification process through its Veterans Small Business Certification (VetCert) program.

SDVOSB set-asides are particularly common in Department of Defense and Department of Veterans Affairs contracts.

Browse active SDVOSB contract opportunities.

Women-Owned Small Business (WOSB / EDWOSB)

WOSB set-asides support women-owned small businesses in industries where they are underrepresented. There are two tiers: WOSB (Women-Owned Small Business) and EDWOSB (Economically Disadvantaged Women-Owned Small Business), with the latter having additional economic criteria.

These set-asides are limited to specific NAICS codes where the SBA has determined that women-owned businesses are underrepresented. Not every industry qualifies, so it's worth checking whether your primary NAICS codes are on the eligible list. If you're not sure which NAICS codes apply to your business, try the NAICS Code Finder. You can also browse active WOSB contract opportunities.

HUBZone Program

The HUBZone (Historically Underutilized Business Zone) program encourages economic development in distressed communities. To qualify, a business must be located in a designated HUBZone, and at least 35% of its employees must reside in a HUBZone.

HUBZone-certified businesses also receive a 10% price evaluation preference in full and open competition, which can be a significant advantage even outside of set-aside contracts. Browse active HUBZone contract opportunities.

Finding Set-Aside Opportunities

On SAM.gov, set-aside information is included in the opportunity listing, but filtering by set-aside type can be cumbersome. The search interface doesn't always make it easy to isolate opportunities matching your specific certification.

GovTrove lets you filter by set-aside type with a single click. Whether you're 8(a) certified, an SDVOSB, or a HUBZone business, you can instantly see only the opportunities reserved for your category — and combine that with keyword search, NAICS codes, agency filters, and deadline tracking.

Or browse current opportunities by set-aside type:

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