Understanding Set-Aside Programs: 8(a), HUBZone, WOSB, and More

The federal government sets annual goals for awarding contracts to small businesses. To meet these goals, agencies use set-aside programs that restrict competition to qualified small businesses. If your company is eligible, set-asides reduce the number of competitors you face.

What is a set-aside?

A set-aside is a contract reserved for a specific category of small business. When a contract is set aside, only businesses certified under that program can compete for it. The contracting officer decides whether to set aside a contract based on the availability of qualified small businesses in the relevant industry.

Major set-aside programs

Small Business Set-Aside (SBA)

Any contract with an expected value between $10,000 and $250,000 is automatically reserved for small businesses under the simplified acquisition threshold. Contracts above $250,000 can also be set aside if the contracting officer expects at least two qualified small businesses to submit competitive offers.

Eligibility: Your business must meet the SBA's size standard for the contract's NAICS code. Size standards are based on either annual revenue or number of employees, depending on the industry.

8(a) Business Development Program

The 8(a) program is designed for small businesses owned by socially and economically disadvantaged individuals. Participants can receive sole-source contracts (up to certain dollar thresholds) and compete in 8(a) set-asides.

Eligibility: The business must be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged. The firm must have been in business for at least two years. The program lasts nine years.

Certification: Apply through the SBA's certify.sba.gov portal.

HUBZone (Historically Underutilized Business Zones)

HUBZone contracts are set aside for small businesses located in areas with low income, high unemployment, or other economic challenges.

Eligibility: Your principal office must be in a designated HUBZone, and at least 35% of your employees must live in a HUBZone. Check HUBZone eligibility by address at maps.certify.sba.gov.

Certification: Apply through certify.sba.gov.

WOSB / EDWOSB (Women-Owned Small Business)

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

• WOSB (Women-Owned Small Business): at least 51% owned and controlled by one or more women.
• EDWOSB (Economically Disadvantaged Women-Owned Small Business): meets WOSB criteria plus economic disadvantage thresholds.

Certification: Self-certification was previously allowed, but SBA now requires certification through an SBA-approved third-party certifier or through certify.sba.gov.

SDVOSB (Service-Disabled Veteran-Owned Small Business)

Contracts set aside for small businesses owned by veterans with a service-connected disability.

Eligibility: At least 51% owned and controlled by one or more service-disabled veterans. The veteran must manage day-to-day operations.

Certification: Apply through the SBA's Veterans Small Business Certification (VetCert) program at certify.sba.gov.

How set-asides appear on SAM.gov

Each solicitation on SAM.gov lists its set-aside type (if any) in the opportunity details. Common labels include:

• Total Small Business Set-Aside
• Partial Small Business Set-Aside
• 8(a) Set-Aside
• HUBZone Set-Aside
• Service-Disabled Veteran-Owned Small Business Set-Aside
• Women-Owned Small Business Program Set-Aside

Using set-aside filters in Kontrakk

In Kontrakk, use the Set-Aside filter on the search page to show only opportunities matching your certification. This lets you focus on contracts where you have a competitive advantage.