Small Business Set-Asides

Small businesses are the backbone of the American economy.  The federal government recognizes that.  Consequently, to insure that small businesses are on equal footing with mega corporations, the federal government’s program of small business set-asides assures that a percentage of annually awarded contracts are “set-aside” or are reserved for them. If an anticipated contract is valued between $3000 up to $150,000 it is earmarked for small businesses.  The only stipulation is that there has to be a minimum of two businesses that can fulfill the contract with their services or products.

Small business set-asides can mean huge profits for your company.
We’ll show you how it works – call 888-232-3650

Who qualifies for inclusion into this small business set-aside group?  The initial characterization is that the business must first fit within the standards of being a “small” business.  Those standards are set by the SBA – Small Business Administration.  Once it is determined that a business does fit within the parameters of being a small business, it now potentially can be reviewed to determine which, if any, set-asides it might also qualify for.  There are several, however, the main categories listed below are the major ones that potentially a small businesses could fall into:

  • disadvantaged small businesses
  • disabled-veteran owned small businesses
  • HUBZone or underutilized business zone companies
  • and the most recently added category of woman owned small businesses (wosb) – this was just added in the year 2011.


The government has defined each group and established acquisition goals for each one.  You can check out the certification section for a more detailed description of each qualifying sub-category to see if your business might fall within the parameters set up by the SBA.  It is possible that a business could qualify for more than one small business set-aside category all at the same time.  Each category has its own predetermined percentage of allocations of federal contracts.  Since each of these set-aside allocations would be added together, it is obvious that the more set-aside category descriptions your business satisfies, the better.

The larger the number of set-asides, the greater will be your total percentage.  For this reason, it would be worth the effort to identify all the categories for which your company qualifies.  The place to begin is to get familiar with all the listed categories within the Small Business Administration’s set-aside program.  Read their established descriptions.  You will be required to provide the documentation to prove that your business does, in fact, meet their standards of each category.

Federal, state, local governments in addition to the GSA are required by law to spend up to 43% of their allocated funds on small business set-asides.  The basic breakdown is set up currently as between 3% to 5% for additional set-asides on top of the basic 23% for being included in the first place.  The more you qualify for, the greater the percentage becomes as it is added together.

Don’t miss the advantage of Small Business set-asides!
Do you qualify?  Call us for more info: 888-232-3650.

If your small business meets the certification requirements, you are eligible to be included in a slice of the spending.  So why not do your homework to determine how big of slice of the federal contracting pie your business can earn?  The classification and certification section describes the various groups in more detail.


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