Guides / Federal set-aside types: small business, 8(a), HUBZone, SDVOSB and WOSB

Federal set-aside types: small business, 8(a), HUBZone, SDVOSB and WOSB

Last reviewed November 2, 2026 · Educational content, not legal advice

A set-aside limits competition for a contract to a certain kind of small business. The federal government aims to award at least 23% of contracting dollars to small businesses each year, with further goals for women-owned (5%), service-disabled veteran-owned (5%) and HUBZone (3%) small businesses (SBA). Set-asides are the main tool for getting there. This guide explains each type, who qualifies, and what proof you need.

Open set-aside notices right now (as of 02 Nov 2026):

Small business: 2,719
8(a): 118
HUBZone: 151
SDVOSB: 442
WOSB / EDWOSB: 87

Small business set-asides and the “rule of two”

FAR Part 19 defines a small business set-aside as limiting an acquisition exclusively to small business concerns. For contracts above the micro-purchase threshold, the contracting officer must set the contract aside for small business when there is a reasonable expectation of offers from two or more responsible small businesses that are competitive on fair market price, quality and delivery—the “rule of two” (FAR Overhaul 19.104-1). A partial set-aside reserves one or more distinct portions of a larger requirement (not used for construction) (19.104-2).

Who can bid: any firm that is small under the size standard for the solicitation’s NAICS code and represents so in good faith (19.201-1). No separate certification is needed for a general small business set-aside. See our NAICS and size standards guide.

For the socioeconomic programs below (8(a), HUBZone, SDVOSB, WOSB/EDWOSB), FAR Part 19 requires the business to be certified by SBA for that program to be eligible for award under it (19.201-1(a)(2)). Applications go through SBA Certifications, and certified firms appear in SBA’s Small Business Search and in SAM.gov.

8(a) Business Development program

What it is: an SBA business development program; participants can receive 8(a) set-aside and sole-source contracts, with a nine-year program term (SBA).
Key eligibility (per SBA): small; never previously in 8(a); at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged; economic-disadvantage limits of about $850,000 personal net worth, $400,000 adjusted gross income (three-year average) and $6.5 million in total assets, with certain exclusions (SBA, 13 CFR 124.104). Firms owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations and CDCs have separate rules.
Recent change: SBA’s revised social-disadvantage rule for individually owned applicants took effect September 10, 2026, replacing the prior narrative-based test with an objective standard in 13 CFR 124.103 (SBA FAQ). Check SBA’s current guidance before applying.
Sole-source limits: up to $8.5 million for manufacturing NAICS codes and $5.5 million for all others (19.108-7, SBA).

HUBZone program

Key eligibility (per SBA): small; at least 51% owned and controlled by U.S. citizens (or certain entities such as CDCs, agricultural cooperatives, ANCs, NHOs or tribes); principal office located in a HUBZone; at least 35% of employees living in a HUBZone (SBA). Check addresses on the HUBZone map.
Benefits: HUBZone set-asides and sole-source awards, plus a 10% price evaluation preference in full and open competitions (SBA; 19.110).
Sole-source limits: $8.5 million (manufacturing) / $5.5 million (other) (19.105-3).
Upkeep: recertify every three years (SBA).

Service-disabled veteran-owned small business (SDVOSB)

Who certifies: SBA, through the Veteran Small Business Certification (VetCert) program. The function moved from the Department of Veterans Affairs to SBA on January 1, 2023 (SBA).
Key eligibility (per SBA): small; at least 51% owned and controlled by one or more veterans rated as service-disabled by the VA (SBA).
At award: the contracting officer must verify the offeror is designated in SAM as an SDVOSB certified by SBA (19.106-1).
Sole-source limits: $8.5 million (manufacturing) / $5 million (other)—note the lower non-manufacturing figure than the other programs (19.106-3).
Certified veteran-owned small businesses (VOSBs) can also pursue set-asides at the VA under its Vets First program; on SAM.gov those appear as VA veteran-owned small business set-asides (SBA).

Women-owned small business (WOSB) and EDWOSB

WOSB eligibility (per SBA): small; at least 51% owned and controlled by women who are U.S. citizens; women manage day-to-day operations and make long-term decisions (SBA).
EDWOSB adds economic limits: each qualifying woman owner under $850,000 personal net worth, $400,000 or less average adjusted gross income over three years, and $6.5 million or less in personal assets (SBA).
Industry limits: WOSB/EDWOSB set-asides are only available in NAICS codes where SBA has found WOSBs underrepresented (EDWOSB) or substantially underrepresented (WOSB) (19.107-2; SBA’s eligible NAICS list).
Certification required: firms must be certified through SBA Certifications to compete for WOSB program set-asides (SBA).
Sole-source limits: $8.5 million (manufacturing) / $5.5 million (other) (19.107-3).

Other set-aside codes you will see on SAM.gov

SAM.gov also uses codes such as Indian Small Business Economic Enterprise (ISBEE), Indian Economic Enterprise (IEE), “Buy Indian” and local area set-asides. These are agency- or statute-specific—read the notice for the exact eligibility rules.

Practical checklist

Confirm you are small under the NAICS code on each notice—not just your primary code.
Only claim a socioeconomic status you are certified for; check your SAM.gov record shows it.
Filter your searches by the set-asides you qualify for—and keep watching unrestricted and small business set-asides too.
Respond to sources sought notices in your area: they are how agencies find the “two or more” capable small firms.

Browse open notices by program: small business · 8(a) · HUBZone · SDVOSB · WOSB/EDWOSB.

Tell OppBeacon which set-asides you qualify for and it will email only matching new notices each morning—no more scrolling past contracts you can’t bid on. Create a free alert →

Program rules change. This guide summarizes official sources as of the date above and is not legal advice; confirm details with SBA and the solicitation. FAR citations refer to the FAR Overhaul deviation text on acquisition.gov.

FAQ

What is the rule of two?

For contracts above the micro-purchase threshold, the contracting officer must set the contract aside for small business when there is a reasonable expectation of offers from two or more responsible small businesses that are competitive on fair market price, quality and delivery (FAR Part 19).

Do I need SBA certification to bid on a small business set-aside?

For a general small business set-aside you represent your size in good faith against the solicitation's NAICS size standard. For 8(a), HUBZone, SDVOSB and WOSB/EDWOSB set-asides, FAR Part 19 requires that the firm be certified by SBA for that program.

Who certifies service-disabled veteran-owned small businesses now?

SBA. The certification function transferred from the Department of Veterans Affairs to SBA on January 1, 2023 (Veteran Small Business Certification, VetCert).

Can a WOSB set-aside be used in any industry?

No. WOSB and EDWOSB set-asides are limited to NAICS codes where SBA has determined women-owned small businesses are underrepresented or substantially underrepresented; SBA publishes the eligible list.

Sources

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OppBeacon is an independent software product. It is not affiliated with, endorsed by, or acting on behalf of the U.S. government or SAM.gov. We do not submit bids, register businesses, file government paperwork, or provide consulting, IT, or development services. Data comes from publicly available SAM.gov records.