What is a set-aside? Small business, 8(a), HUBZone, WOSB and SDVOSB explained
A set-aside reserves a government contract for a certain kind of small business. Here's what each type means and how to qualify.
A set-aside is a government bid that only certain businesses may compete for. In federal contracting, the biggest is the small business set-aside: only businesses that count as small for that bid's industry code can bid. Set-asides keep small firms from competing head-to-head with large ones.
The main federal set-asides
- Small business: you must be small under the SBA size standard for the bid's NAICS code. You self-certify in SAM.gov. See open small business set-asides.
- 8(a): for firms in the SBA's 8(a) Business Development program, which serves small businesses owned by socially and economically disadvantaged individuals. Open 8(a) bids.
- HUBZone: for SBA-certified firms whose main office is in a Historically Underutilized Business Zone and whose employees partly live in one. Open HUBZone bids.
- WOSB / EDWOSB: for SBA-certified women-owned small businesses. Open WOSB bids.
- SDVOSB: for small businesses owned and controlled by service-disabled veterans, certified through SBA VetCert. Open SDVOSB bids.
How to qualify
Register in SAM.gov first. For the certified programs (8(a), HUBZone, WOSB, VetCert), apply through the SBA. See our SBA certification guide.
States have their own programs
Many states and cities run small, minority, women or veteran business programs with their own certification and goals. Check your state's registration guide.
Common questions
Do I need a certification for a small business set-aside?
No. For a plain small business set-aside you self-certify as small in SAM.gov for the bid's NAICS code. The 8(a), HUBZone, WOSB and SDVOSB programs require SBA certification.
What does 'Total' vs 'Partial' small business set-aside mean?
Total means the whole contract is reserved for small businesses. Partial means only part of it is.
Let FindMyBids do the searching
We check federal, state and local bids every morning, explain each one in plain English, and tell you if you're ready to bid. Free to start.
Get my free alert