Government Contract Set-Asides Explained: SDVOSB, WOSB, 8(a), HUBZone
Updated
Short answer
A set-aside is a government contract reserved for a certain kind of small business, so only those firms can bid. The main set-asides are Total Small Business, women-owned (WOSB and EDWOSB), service-disabled veteran-owned (SDVOSB), 8(a) for socially and economically disadvantaged owners, and HUBZone for firms in historically underutilized areas.
Why do set-asides matter?
On an open contract you compete with every company in the country. On a set-aside, only qualifying firms can bid, so there are far fewer competitors. GovNearby scores set-asides that match your certifications higher for this reason.
The main set-aside types
- Total Small Business: any business that meets the SBA size standard for the NAICS code.
- WOSB / EDWOSB: at least 51% owned and controlled by women (EDWOSB adds economic disadvantage).
- SDVOSB: at least 51% owned and controlled by one or more service-disabled veterans.
- VOSB: veteran-owned, mainly used by the Department of Veterans Affairs.
- 8(a): businesses in SBA's 8(a) Business Development program.
- HUBZone: businesses based in, and employing people from, Historically Underutilized Business Zones.
How do I know if I qualify?
Check the SBA size standard for your NAICS code on SBA.gov, then apply for any certification that fits your ownership. Add your certifications to your GovNearby profile and we'll show you contracts reserved for you.
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Frequently asked questions
Are there government contracts for women-owned businesses?
Yes. The Women-Owned Small Business (WOSB) program reserves some contracts for women-owned firms, and EDWOSB contracts for economically disadvantaged women-owned firms. You need to be certified to compete for them.
Are there government contracts for veterans?
Yes. Service-disabled veteran-owned small businesses (SDVOSB) can compete for SDVOSB set-asides across federal agencies, and the Department of Veterans Affairs also sets aside contracts for veteran-owned businesses.
Are there government contracts for minority-owned businesses?
The 8(a) Business Development program supports small businesses owned by socially and economically disadvantaged individuals, and many 8(a) contracts are reserved for program participants.