Small Business Set-Asides: How to Qualify for Reserved Federal Contracts

The federal government is required to award at least 23% of all contract dollars to small businesses. That's over $150 billion annually. Here's how to get your share.

What Are Set-Asides?

Set-asides are federal contracts that are "set aside" exclusively for certain categories of small businesses. Only qualifying businesses can compete for these contracts, dramatically reducing your competition.

Types of Set-Aside Programs

1. Small Business Set-Aside The broadest category. Any business meeting SBA size standards can compete. Size standards vary by industry — typically under $16.5M in annual revenue for construction.

2. SBA 8(a) Business Development For socially and economically disadvantaged small businesses. Benefits include sole-source contracts up to $4.5M and mentoring programs.

Requirements: - 51% owned by socially disadvantaged individuals - Net worth under $850K (excluding home and business) - Three years in business

3. HUBZone For businesses located in Historically Underutilized Business Zones. Get a 10% price evaluation preference on full and open competitions.

Requirements: - Principal office in a HUBZone - At least 35% of employees reside in a HUBZone

4. Service-Disabled Veteran-Owned Small Business (SDVOSB) For businesses owned by veterans with service-connected disabilities.

Requirements: - 51% owned by service-disabled veteran(s) - Veteran must manage daily operations

5. Women-Owned Small Business (WOSB) For businesses owned by women in underrepresented industries.

Requirements: - 51% owned by women - Women must manage daily operations

How to Get Certified

1. Register on SAM.gov — Required for all federal contractors
2. Determine your NAICS code — This determines your size standard
3. Apply through SBA — Most certifications are free through certify.sba.gov
4. Gather documentation — Tax returns, financial statements, ownership documents
5. Wait for approval — Processing takes 2-6 months depending on the program

How to Find Set-Aside Contracts

Search on SAM.gov or BidTrackPro and filter by set-aside type. Look for keywords like "Small Business Set-Aside," "8(a) Sole Source," or "SDVOSB Set-Aside" in bid descriptions.