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Small Business Administration (SBA) · Federal Set-Aside Program

🏢

Small Business
Certification

The foundation of federal small business contracting — no certification required.

Small business set-asides are the most common form of federal contracting preference — and they require no special certification. If your business meets SBA size standards for your NAICS code, you're eligible to compete for the $170B+ in federal contracts set aside exclusively for small businesses each year.

Find SBSA Set-Aside Tenders →Apply Now ↗

Program At a Glance

Annual set-aside value

$170B+

Contracts per year

200,000+

Avg contract value

$850K

Processing time

Immediate — self-certification

Certification length

Annual SAM.gov renewal required

Annual renewal

Required

Find SBSA Tenders Free →

Overview

What is the Small Business?

The SBA establishes size standards for each NAICS code — typically expressed as maximum annual revenue or maximum number of employees. Businesses that meet these standards are classified as small businesses and are eligible to compete for federal contracts set aside exclusively for small business competition. FAR rules require contracting officers to set aside acquisitions for small business competition when there's a reasonable expectation of receiving offers from at least two small businesses.

Why It Matters

The competitive advantage

The federal government has a 23% small business contracting goal — the largest procurement preference program in the world. Over $170B in contracts are set aside for small businesses annually. Unlike other certifications, there's no application, no approval process, and no annual renewal — you just need to meet the size standard and register in SAM.gov.

Eligibility Requirements

Do you qualify?

Meet SBA size standards

Your business must not exceed the SBA size standard for your primary NAICS code. Standards vary by code — typically $1M–$47M in revenue for service industries, $750K–$38.5M for retail, and up to 1,500 employees for manufacturing.

SAM.gov registration

Active registration in SAM.gov is required to receive federal contract awards. Registration is free and must be renewed annually.

US-based business

Principal office must be in the United States for most programs.

Self-certification

Small business status is self-certified at time of offer. Contracting officers may request size verification from the SBA.

Benefits

What you unlock

$170B+

$170B+ annual opportunity pool

The largest federal contracting preference program by dollar volume.

Instant

No certification required

Self-certify at time of bid — no application, no approval process, no fees.

Up to $250K

Sole-source potential

Contracting officers can award sole-source contracts to small businesses up to $250,000 without competition.

Foundation

Foundation for other certifications

Small business status is a prerequisite for 8(a), HUBZone, SDVOSB, and WOSB certifications.

$4B+ SBIR

SBIR and STTR programs

Small businesses are the only eligible recipients for SBIR/STTR R&D grants — billions in annual funding.

How to Apply

Step-by-step application

Determine your primary NAICS code for federal contracting purposes

Look up the SBA size standard for that NAICS code at www.sba.gov/size-standards

Confirm your business does not exceed the revenue or employee threshold

Self-certify as a small business when submitting proposals — no SBA approval needed

✓

Consider pursuing specialty certifications (8(a), HUBZone, SDVOSB, WOSB) if eligible

Apply at sam.gov ↗

Common Mistakes

What trips people up

✗Not checking size standards per NAICS code — standards vary significantly across codes

✗Using revenue from affiliated companies without including them in the size calculation

✗Letting SAM.gov registration expire — an expired registration prevents contract awards

✗Misidentifying your primary NAICS code — the wrong code can affect size standard eligibility

✗Not tracking affiliation rules — businesses with common ownership or management may be treated as one entity

✗Missing SBIR/STTR opportunities — many small businesses overlook these R&D funding programs

FAQ

Frequently asked questions

Q: How do I find the size standard for my NAICS code?

Use the SBA's Size Standards Tool at www.sba.gov/size-standards. Enter your NAICS code to see the applicable revenue or employee threshold.

Q: What if I'm borderline on size standards?

Size is calculated based on average annual receipts over the past 3 years (revenue-based standards) or average number of employees over the past 12 months (employee-based standards). If you're close to the threshold, a formal size determination from the SBA can provide certainty.

Q: Do I need to recertify small business status every year?

You self-certify at the time of each bid. There's no annual SBA approval. However, your SAM.gov registration must be renewed annually. For long-term contracts, recertification may be required at option exercise dates.

Q: Can I bid on small business set-asides in multiple NAICS codes?

Yes. Your size standard is determined by the NAICS code assigned to the specific contract, not just your primary NAICS code. You can qualify as a small business under some codes but not others.

Q: What is the SBIR program and how do I access it?

The Small Business Innovation Research (SBIR) program requires federal agencies with large R&D budgets to set aside a percentage for small businesses. Awards are made in phases up to $2M+. The SBIR.gov portal lists all active solicitations across participating agencies.

$170B+ in SBSA contracts.
How many are you missing?

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Small BusinessCertification