Small business certifications explained

8(a), HUBZone, WOSB and veteran-owned programs open doors to set-aside contracts. Here is how they differ and who certifies each one.

Federal agencies reserve some contracts for small businesses and for firms in specific socioeconomic programs. Knowing which programs you qualify for, and which require formal certification, can widen the work you are eligible to bid.

Small business status

Whether your firm is small depends on the size standard for the NAICS code of each contract, measured in average annual receipts or employees. A firm can be small for one code and not another. You represent your size in SAM.gov.

8(a) Business Development

The SBA's 8(a) program is a business development program for small businesses owned and controlled by socially and economically disadvantaged individuals. Participation lasts a fixed term and includes eligibility for sole-source and set-aside contracts.

HUBZone

The HUBZone program favors small businesses whose principal office is in a Historically Underutilized Business Zone and whose employees partly live in one. Eligibility depends on maps that change, so firms need to keep checking their status.

Women-owned (WOSB and EDWOSB)

The Women-Owned Small Business program allows agencies to set aside contracts in industries where women-owned firms are underrepresented. Economically disadvantaged women-owned small businesses (EDWOSB) can compete for additional set-asides.

Veteran-owned (VOSB and SDVOSB)

Veteran-owned and service-disabled veteran-owned small businesses are certified by the SBA through its veteran small business certification program. Certification is what agencies rely on for set-asides.

State programs are separate

States run their own programs, such as minority, women and small business certifications, with their own applications. A federal certification does not automatically qualify you for a state program, and the reverse is also true.

Keep them current

Certifications expire or require annual updates. A lapsed certification can cost you an award or a place on a prime's team. Free counseling on choosing and maintaining certifications is available through APEX Accelerators and SBA district offices.