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GUIDE GSC
Government Contract Service Center
00:00
GUIDE GSC RESOURCE LIBRARY

Understanding
Set-Aside Programs

How 8(a), HUBZone, WOSB, and SDVOSB work - and whether your organization qualifies.

WHY SET-ASIDES EXIST

The federal government
spends ~$700 billion a year
buying goods and services.

23%
Statutory small business spending goal
5%
Goal for women-owned and disadvantaged firms
3%
Goal for HUBZone and SDVOSB firms
8(a)
PROGRAM I

BUSINESS DEVELOPMENT

8(a) Program

A nine-year SBA development program for socially and economically disadvantaged small businesses - with sole-source authority up to $4.5M.

  • 51%+ owned by socially and economically disadvantaged individuals
  • Personal net worth under $850K; 3-yr AGI under $400K; total assets under $6.5M
  • In business under current ownership for at least 2 years (waivers available)
  • Owner controls day-to-day operations and is full-time at the firm
KEY BENEFITSole-source contracts up to $4.5M without competition. 9-year clock - plan accordingly.
HUB
PROGRAM II

HISTORICALLY UNDERUTILIZED BUSINESS ZONE

HUBZone

A geographic program - your firm must be based in a designated HUBZone, with at least 35% of your workforce living in one.

  • Principal office located in a SBA-designated HUBZone
  • At least 35% of employees reside in a HUBZone
  • Must qualify as a small business under your primary NAICS
  • Owned and controlled (51%+) by US citizens, tribes, or qualifying entities
  • Recertify every 3 years and update annually
KEY BENEFIT10% price evaluation preference on full-and-open bids, plus HUBZone-only set-asides.
WO
PROGRAM III

WOMEN-OWNED SMALL BUSINESS

WOSB & EDWOSB

Set-asides reserved for firms owned and controlled by women - with an enhanced tier (EDWOSB) for economically disadvantaged women-owned firms.

  • 51%+ owned and controlled by one or more women who are US citizens
  • A woman holds the highest officer position and manages day-to-day operations
  • EDWOSB adds an economic disadvantage test (same thresholds as 8(a))
  • Eligible only in NAICS codes where women are underrepresented
  • Self-certify or third-party certify; recertify every 3 years
KEY BENEFITAccess to WOSB and EDWOSB set-asides, plus sole-source authority up to $4.5M for EDWOSB.
SDV
PROGRAM IV

SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS

SDVOSB

For firms owned and controlled by veterans with service-connected disabilities - with priority status across VA contracts and government-wide set-asides.

  • 51%+ owned by one or more service-disabled veterans
  • Service-connected disability documented by the VA
  • Veteran(s) control management and daily operations
  • Veteran holds the highest officer position in the company
  • Certified through SBA Veteran Small Business Certification (VetCert)
KEY BENEFITGovernment-wide SDVOSB set-asides, plus VA Vets First priority that elevates SDVOSB above all other VA bidders.
CHOOSING THE RIGHT PATH

You can hold more than one.

ProgramPrimary TestSole-Source Up ToStandout Benefit
8(a)Disadvantaged ownership + financial limits$4.5M ($7M mfg)9-year development with sole-source authority
HUBZoneGeography of office + workforce residency$4.5M ($7M mfg)10% price preference on full-and-open bids
WOSB / EDWOSBWomen ownership; EDWOSB adds financial test$4.5M (EDWOSB)Set-asides in NAICS where women are underrepresented
SDVOSBService-disabled veteran ownership and control$4.5M ($7M mfg)VA Vets First priority over all other bidders
YOUR NEXT STEP
Certifications open doors that competition keeps closed.
If you might qualify,
you owe it to your business to find out.
START AT GUIDE GSC
Resource library · Eligibility tools · Application support
INTRODUCTION
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