Small Business

Small Business Set-Aside

A federal contracting requirement that restricts competition on certain contracts to small businesses, as defined by the SBA size standard for the contract's NAICS code. The most common federal set-aside type.

Who qualifies

Businesses that meet the SBA size standard for the NAICS code applicable to the contract. Size standards are NAICS-specific — usually a revenue threshold (typically $X million over three years) or an employee count, depending on the industry. The SBA Table of Small Business Size Standards is the authoritative reference.

How to certify

Self-certify on SAM.gov as part of your entity registration. Declare your business size for each NAICS code you register. You may be required to recertify upon contract award and at intervals during contract performance — agencies sometimes audit size representations.

What it gets you

Eligibility to compete on small-business set-aside contracts (the largest set-aside category by dollar value). Many agencies set aside contracts under $250,000 automatically for small business when there is a reasonable expectation of two or more small-business offerors at fair-market prices.