Which Federal Set-Aside Program Is Right for You? Here’s the Clear, No-Nonsense Breakdown
If you’ve been circling the world of government contracting but aren’t sure which set-aside certification to pursue first, you’re not alone. The SBA and federal agencies offer a buffet of options, 8(a), WOSB/EDWOSB, SDVOSB, HUBZone, but choosing the wrong one (or going after all at once) can waste time, energy, and opportunity. With new rules tightening certification requirements and more agencies under pressure to meet small business goals, now’s the time to make a strategic choice.
Let’s break down the core programs, what’s changed, and how you can pick the one that fits your business best and gets you in the door fastest.
The federal government operates four primary small-business set-aside programs:
8(a) Business Development: For socially and economically disadvantaged individuals
Women-Owned Small Business (WOSB/EDWOSB): For majority-women-owned firms in underrepresented industries
Service-Disabled Veteran-Owned Small Business (SDVOSB): For veterans with service-connected disabilities
HUBZone: For businesses located in and hiring from economically distressed areas
Each comes with its own rules, benefits, and target agencies. And in 2025, you must be certified, no more self-certifying for SDVOSB or WOSB if you want access to set-aside contracts.
So What? Why Should You Care?
Because choosing the wrong program or skipping certification altogether means leaving contracts on the table. For example:
8(a) firms received nearly $70B in federal contracts last year, with many going directly to vendors via sole-source awards.
WOSB awards are climbing (almost $31B in FY2023), but agencies still miss their 5% goal. If you’re a woman-owned firm in an eligible NAICS, you’re in demand.
SDVOSBs now must be SBA-certified through VetCert. No certification? No award.
HUBZone is still the most underutilized program, yet it offers a 10% price evaluation preference even in open competitions.
Getting certified isn’t just a bureaucratic checkbox. It’s a competitive advantage—and in many cases, the only way you’ll qualify for sole-source or set-aside opportunities.
Which One Fits You Best? A Quick Match Guide
Minority entrepreneur with limited capital or federal past performance? → Start with SBA 8(a). You’ll need to prove both social and economic disadvantage, but you’ll gain access to business development help, sole-source pathways, and a 9-year runway to scale.
Woman-owned business in a professional services or tech NAICS? → Go for WOSB or EDWOSB. Start with WOSB certification—it’s faster and easier—and check if you qualify for EDWOSB to unlock additional industries.
Veteran with a service-connected disability running your own shop? → You need SDVOSB (VetCert), especially if you’re targeting the VA or DoD. This one’s non-negotiable now that SBA runs all SDVOSB certification.
Business located in a HUBZone area with local employees? → Don’t ignore HUBZone. If you’re already based in a qualifying area and your staff meets the residency requirement, this is one of the most powerful certifications—especially in underserved rural areas.
And if you qualify for more than one? Great. Stack them. Agencies love multi-certified firms because they can check off multiple goals with one award.
Key Certification Updates for 2025
8(a): All applicants, including minorities, must now submit a social disadvantage narrative due to court rulings (no more automatic presumption).
WOSB/EDWOSB: No more self-certification. You must be certified via SBA or an approved third party to bid on WOSB set-asides or sole-sources.
SDVOSB: Certification is now run exclusively through SBA’s VetCert portal. If you’re not certified by 10/01/2024, you’re out of luck.
HUBZone: SBA updated the map with 2020 Census data. Your zone may have changed. Also, annual recertification and 35% employee residency compliance are enforced more strictly now.
How to Use This Info to Land Your First Contract
Here’s how newcomers are finding “first wins” using set-aside certifications:
Use simplified acquisitions: Contracts under $250,000 are often awarded faster and with less red tape. Many can go sole-source or micro-purchase if you’re certified.
Target small-dollar sole-sources: Agencies can award 8(a), SDVOSB, and WOSB sole-source contracts under $4.5M (or $7M for manufacturing).
Subcontract strategically: Large primes need certified small businesses to meet their subcontracting goals, especially for hard-to-find categories like HUBZone and WOSB.
Form a joint venture: Use SBA’s All-Small Mentor-Protégé Program to partner with a large firm and bid on set-asides without violating size rules.
Remember: the fastest path to past performance is not always as a prime. Subcontracting or joint venturing lets you build a track record without bearing the full burden alone.
Final Take: Don’t Wait to Get Certified
Too many businesses wait until they see an opportunity to start the certification process—by then it’s too late. The reality is:
Certifications take time (30–120 days or more depending on the program)
Agencies prefer vendors who are ready now
Once certified, you can proactively ask contracting officers to set aside opportunities for your category
And if you already qualify for 8a certification assistance, women owned small business certification, or disabled veteran small business certification, get moving. These certifications are often the difference between losing in full-and-open competition… and winning uncontested.
Want help choosing the right path or preparing your application? Whether you’re looking for sba 8a certification services, government contract proposal writing, or SBIR Grant assistance, we can guide you.
If you found this helpful, check out our recent blog post: Don't Miss Out on Close to $1 Billion in Opportunities for a deep-dive comparison of each program, with real-world examples and first-win tactics.
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.
