Federal Contracts for Underserved Small Businesses: SBA & GSA Support
Small businesses are the backbone of the U.S. economy and are a critical component of government purchasing. The Small Business Administration (“SBA”) and the Government Services Administration (“GSA”) believe every small business should have equal access to federal opportunities.
However, small disadvantaged-businesses and certain socio-economic categories, especially in underserved communities have historically faced inequities in award opportunities.
The goal has been to develop government programs to help these small businesses overcome the challenges of successfully doing business with the federal government by assisting them to:
- Win a fair share of federal contracts
- Qualify for exclusive set-aside and sole-source contracts
- Partner with established contractors to win contracts
- Get business mentoring and education to learn how federal contracting works
To help advance equality and support underserved communities across the federal government the SBA has established the following contracting goals.
| Small business category | Contracting dollar award goal |
| Women-Owned Small Business | 5% |
| 8(a) Business Development Program | 5% |
| Service-Disabled Veteran-Owned Small Business | 3% |
| Small Business in a HUBZone | 3% |
To help provide a level playing field for all small businesses, the government limits competition for certain contracts under $250,000 to small businesses. The goal for total small business awards is 23% of all federal government awards.
These contracts are often referred to as “small business set-asides,” and they help small businesses compete for and win federal contracts. Some set-asides are open to any small business, but those referred to in the table are only open to certified small businesses that qualify for their socio-economic designation.
Participation in these small business contracting assistance programs requires a formal certification process. FedBiz Access works with contractors and organizations to help them do business with governmental agencies by ensuring their registrations and certifications are current, complete, and compliant.
FedBiz services help businesses establish their foundation with the federal government, as well as state and local government agencies, through their initial registration and certification filings, as well as targeted market research to find the right buyers.
FedBiz Access helps companies build a clear path from registration to award.
Frequently Asked Questions
- 1 What government programs are in place to help small businesses from underserved communities secure federal contracts?
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The SBA and GSA have developed programs to help small businesses, especially those from underserved communities, overcome challenges in federal contracting. These programs aim to help them win a fair share of contracts, qualify for exclusive set-aside and sole-source contracts, partner with established contractors, and receive business mentoring and education.
- 2 What are "small business set-asides" and how do they benefit my business?
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Small business set-asides are contracts where competition is limited to small businesses, often for contracts under $250,000. They help level the playing field, allowing small businesses to compete for and win federal contracts. Some set-asides are specifically for businesses with certain socio-economic certifications.
- 3 What are the specific federal contracting goals for different small business categories?
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The SBA has established specific contracting dollar award goals to advance equality. These include 5% for Women-Owned Small Businesses, 5% for 8(a) Business Development Program participants, 3% for Service-Disabled Veteran-Owned Small Businesses, and 3% for Small Businesses in a HUBZone. The overall goal for total small business awards is 23% of all federal government awards.
- 4 How can FedBiz Access assist my small business with federal certifications?
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Participation in small business contracting assistance programs requires a formal certification process. FedBiz Access works with contractors and organizations to help them navigate and complete these necessary certifications, enabling them to do business with governmental agencies and qualify for specific set-aside opportunities.
