What percentage of federal contracts must go to small businesses?

The federal government has a statutory goal of awarding at least 23% of all prime contract dollars to small businesses. There are also sub-goals for specific socioeconomic categories: 5% for women-owned small businesses, 5% for small disadvantaged businesses, 3% for HUBZone businesses, and 3% for service-disabled veteran-owned small businesses.

How do I get certified as a small business?

Start by registering on SAM.gov and completing your entity profile. For specific certifications (8(a), HUBZone, WOSB), you must apply through the SBA's certification portal. Each program has specific eligibility criteria including ownership structure, size standards, and geographic requirements.

What is a set-aside contract?

A set-aside is a contract that is restricted to a specific category of small business. For example, an '8(a) set-aside' means only 8(a)-certified firms can compete. Set-asides reduce competition and give qualified small businesses a better chance of winning federal contracts.

Small Business Federal Contracting Programs

8(a) Business Development

The 8(a) Business Development Program assists eligible small disadvantaged businesses compete in the marketplace through business development assistance, including access to sole-source and competitive set-aside federal contracts.

$13.9B total spend · 4,916 contractors

HUBZone

The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities through price evaluation preferences and set-aside contracts.

$929.0M total spend · 825 contractors

Women-Owned Small Business

The Women-Owned Small Business (WOSB) Federal Contracting Program provides greater access to federal contracting opportunities for women-owned small businesses through set-aside and sole-source awards in industries where WOSBs are underrepresented.

$1.2B total spend · 1,648 contractors

Service-Disabled Veteran-Owned

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides procurement advantages for small businesses owned by veterans with service-connected disabilities, including set-aside and sole-source contract opportunities.

$8.7B total spend · 3,466 contractors

Veteran-Owned Small Business

Veteran-Owned Small Businesses (VOSB) are small businesses at least 51% owned and controlled by one or more veterans. While there is no formal SBA certification program for VOSB, veteran ownership is self-certified in SAM.gov and provides eligibility for certain preferences.

$2.3M total spend · 21 contractors

What percentage of federal contracts must go to small businesses?

The federal government has a statutory goal of awarding at least 23% of all prime contract dollars to small businesses. There are also sub-goals for specific socioeconomic categories: 5% for women-owned small businesses, 5% for small disadvantaged businesses, 3% for HUBZone businesses, and 3% for service-disabled veteran-owned small businesses.
How do I get certified as a small business?

Start by registering on SAM.gov and completing your entity profile. For specific certifications (8(a), HUBZone, WOSB), you must apply through the SBA's certification portal. Each program has specific eligibility criteria including ownership structure, size standards, and geographic requirements.
What is a set-aside contract?

A set-aside is a contract that is restricted to a specific category of small business. For example, an '8(a) set-aside' means only 8(a)-certified firms can compete. Set-asides reduce competition and give qualified small businesses a better chance of winning federal contracts.

Data sourced from USASpending.gov and SAM.gov . Federal contracting data is public domain.