TL;DR: The federal government awarded $178.6 billion to small businesses in FY2023 — 28.4% of all contract dollars. Set-aside programs like 8(a), HUBZone, WOSB, and SDVOSB reserve contracts exclusively for qualifying firms. If you're eligible, your competition pool shrinks from hundreds of bidders to a handful. Browse set-aside tenders to see what's available now.

What Are Set-Aside Contracts?

A set-aside contract is a federal contract that only certain businesses can bid on. The government restricts competition to a specific category — small businesses, veteran-owned firms, women-owned firms, or businesses in economically disadvantaged areas.

The legal basis is the Small Business Act. Congress requires federal agencies to award a minimum percentage of contract dollars to small businesses. The SBA tracks compliance through annual scorecards, grading each agency on whether they met their targets.

Key fact: In FY2023, the federal government awarded a record $178.6 billion to small businesses — 28.4% of all federal contract spending. The statutory goal is 23%. Every agency exceeded it. (Source: SBA)

The Five Set-Aside Programs

Each program has different eligibility rules, certification processes, and contracting goals. Here's what you need to know about each.

1. Small Business (General)

The broadest category. If your business meets the SBA's size standard for the NAICS code assigned to a contract, you qualify as "small" for that opportunity.

Size standards vary by NAICS code. For example: IT services (541512) caps at $34 million in average annual revenue. Commercial construction (236220) caps at $45 million. Janitorial services (561720) caps at $22 million.
No certification required. You self-certify in SAM.gov by listing your NAICS codes and revenue.
FY2023 goal: 23% of all contract dollars
FY2023 actual: 28.4% — $178.6 billion

To check your size standard, look up your NAICS code on the SBA size standards table.

2. 8(a) Business Development Program

The 8(a) program helps socially and economically disadvantaged business owners compete for federal contracts. It's the most well-known set-aside program and offers both sole-source and competitive set-aside contracts.

Who qualifies: Small business, 51%+ owned by socially and economically disadvantaged US citizens. The owner's personal net worth must be under $750,000, adjusted gross income under $350,000, and total assets under $6 million. The business typically needs 2+ years of operating history.
How to certify: Apply at certifications.sba.gov
Duration: 9 years maximum (4-year developmental stage + 5-year transitional stage)
Active firms: Approximately 4,300 as of late 2025
Advantage: 8(a) firms can receive sole-source contracts up to $4.5 million (services) or $7 million (manufacturing) — no competition at all

Key fact: SDB contracts (the broader category that includes 8(a)) hit $76.2 billion in FY2023 — 12.1% of federal spending, exceeding the 12% goal. (Source: SBA)

3. HUBZone (Historically Underutilized Business Zones)

HUBZone targets businesses located in economically distressed areas with employees from those same areas.

Who qualifies: Small business, principal office in a designated HUBZone, and at least 35% of employees residing in a HUBZone. Must be 51%+ owned by US citizens.
How to certify: Apply at certifications.sba.gov. Use the HUBZone Map to check if your address qualifies.
FY2023 goal: 3%
FY2023 actual: 2.78% — $17.5 billion (a record, but below the goal)
Certified firms: Approximately 6,800+
Advantage: HUBZone firms receive a 10% price evaluation preference in full-and-open competitions, plus access to HUBZone-only set-asides

4. WOSB / EDWOSB (Women-Owned Small Business)

The WOSB program sets aside contracts in industries where women-owned businesses are underrepresented.

Who qualifies (WOSB): Small business, 51%+ owned and controlled by women who are US citizens. Women must manage daily operations.
Who qualifies (EDWOSB): Same as WOSB, plus: owner net worth under $850,000, adjusted gross income under $400,000, personal assets under $6.5 million.
How to certify: Apply at certifications.sba.gov or through SBA-approved third-party certifiers.
FY2023 goal: 5%
FY2023 actual: 4.91% — $30.9 billion (close but slightly under)
Certified firms: Approximately 13,400+

5. SDVOSB (Service-Disabled Veteran-Owned Small Business)

This program reserves contracts for businesses owned by veterans with service-connected disabilities.

Who qualifies: Small business, 51%+ owned and controlled by one or more service-disabled veterans. The veteran must control daily management.
How to certify: Apply through VetCert. Certification is mandatory as of January 2024 — self-certification is no longer accepted.
FY2023 goal: 3%
FY2023 actual: 5.07% — $31.9 billion (exceeded by a wide margin)
Certified firms: Approximately 25,000+ (VOSB and SDVOSB combined)

Program Comparison

Program	Who Qualifies	Certification	FY2023 Goal	FY2023 Actual	Dollar Value
Small Business	Meets NAICS size standard	Self-certify in SAM.gov	23%	28.4%	$178.6B
8(a) / SDB	Disadvantaged owners, net worth < $750K	certifications.sba.gov	12%	12.1%	$76.2B
HUBZone	Office + 35% employees in HUBZone	certifications.sba.gov	3%	2.78%	$17.5B
WOSB	51%+ women-owned and controlled	certifications.sba.gov	5%	4.91%	$30.9B
SDVOSB	51%+ owned by service-disabled veteran	VetCert	3%	5.07%	$31.9B

How to Find Set-Aside Contracts

On SAM.gov, filter by "Set-Aside" when searching contract opportunities. You'll see options for Total Small Business, 8(a), HUBZone, WOSB, EDWOSB, and SDVOSB.

On GovBid, set-aside designations appear on each tender listing. You can browse US federal tenders and check the set-aside status on each opportunity.

The contracting officer's "Rule of Two" (FAR 19.502-2) requires a small business set-aside whenever at least two small businesses can perform the work at a fair market price. This means thousands of contracts that could be full-and-open are restricted to small businesses by default.

Can You Qualify for Multiple Programs?

Yes. Many businesses qualify under more than one category. A women-owned firm in a HUBZone area could be eligible for small business, WOSB, and HUBZone set-asides simultaneously. Each additional certification opens more contract opportunities.

The certifications are independent — you can apply for each one separately. Start with the program where you have the strongest eligibility, then add others. Several industries consistently win set-aside contracts — see our guides for cleaning and janitorial companies, healthcare and medical suppliers, and security firms for industry-specific strategies.

Common Mistakes

Assuming set-asides are "charity." They're not. You still have to submit a competitive proposal and deliver the work. The set-aside just narrows the competition pool.
Not getting certified before opportunities appear. Certification takes weeks to months. Apply now, not when you find a contract.
Over-claiming NAICS codes. You must meet the size standard for the specific NAICS code assigned to a contract. Claiming codes you can't support undermines credibility.
Ignoring the 8(a) sole-source threshold. 8(a) firms can receive contracts up to $4.5 million without competition. Many small businesses don't realize this exists.
Letting certifications lapse. SAM.gov registration must be renewed annually. 8(a) expires after 9 years. Stay on top of renewal dates.

The Bottom Line

Set-aside programs exist because the government wants small businesses in its supply chain — and it's willing to restrict competition to make it happen. In FY2023, that meant $178.6 billion directed to small firms. If you qualify for any of these programs, certification is one of the highest-ROI actions you can take.

Start by checking your NAICS codes, confirming your size standard, and applying through certifications.sba.gov. Then browse open tenders filtered by set-aside type.

Government Set-Aside Contracts: A Guide for Small Businesses