Set-Aside Programs Explained: 8(a), HUBZone, SDVOSB, and WOSB

The federal government sets aside certain contracts exclusively for specific categories of small businesses. Understanding these programs — and getting certified — can dramatically increase your chances of winning federal work.

8(a) Business Development Program

The SBA's 8(a) program is for socially and economically disadvantaged small businesses. It's the most comprehensive program, offering:

• Sole-source contracts up to $4.5M (services) or $7M (manufacturing)
• Set-aside competitions limited to other 8(a) firms
• Business development assistance and mentoring
• 9-year program term

Requirements: Majority ownership by socially disadvantaged individuals (presumed groups include Black, Hispanic, Native American, and Asian Pacific Americans), economic disadvantage (personal net worth under $850K), and at least 2 years in business.

HUBZone (Historically Underutilized Business Zone)

HUBZone certification is based on where your business operates and hires. Benefits include:

• 10% price evaluation preference
• Set-aside contracts
• Sole-source contracts up to $4.5M (services) or $7M (manufacturing)

Requirements: Principal office in a HUBZone, at least 35% of employees living in HUBZones.

SDVOSB (Service-Disabled Veteran-Owned Small Business)

For businesses owned by veterans with service-connected disabilities:

• Set-aside contracts
• Sole-source contracts up to $4.5M (services) or $7M (manufacturing)
• Priority at VA for certain contracts

Requirements: Unconditional ownership (51%+) by one or more service-disabled veterans, daily management by a service-disabled veteran.

WOSB (Women-Owned Small Business)

For women-owned businesses competing in underrepresented industries:

• Set-aside contracts in designated industries
• Sole-source contracts up to $4.5M (services) or $7M (manufacturing)

Requirements: 51%+ unconditional ownership by women, women manage daily operations.

Which Should You Pursue?

• If you qualify for 8(a), apply. It's the most valuable certification.
• HUBZone is powerful if you're located in the right area.
• SDVOSB is relatively fast to obtain if you're a qualifying veteran.
• WOSB is easier to self-certify but limited to certain industries.

Many businesses hold multiple certifications. An 8(a)/WOSB or SDVOSB/HUBZone combination opens even more doors.

In Aeon

When you set up your preferences, select the set-asides you hold. We'll highlight matching opportunities and filter out set-asides you can't compete for.