Understanding Federal Set-Asides: Opportunities for Black Women-Owned Businesses
- Tamanisha
- Apr 22
- 2 min read
Federal set-aside programs are powerful tools designed to level the playing field in government contracting. For Black women entrepreneurs, they open doors to contracts, capital, and growth opportunities that may otherwise be difficult to access in traditional markets.
Here’s a breakdown of two major programs—HUBZone and WOSB—and how they can support the growth of Black women-owned businesses.
What Are Federal Set-Aside Programs?
Set-aside programs reserve a percentage of federal contracts exclusively for businesses that meet specific socio-economic criteria. This ensures that historically underrepresented groups—including women and minorities—have equitable access to government procurement opportunities.
HUBZone Program
(Historically Underutilized Business Zone)
The HUBZone program stimulates economic growth in distressed communities by incentivizing federal agencies to contract with small businesses operating within them.
Key Benefits:
Set-Aside Contracts: Compete in exclusive contracting pools.
10% Price Evaluation Preference: Gives HUBZone firms a competitive edge even in open bidding.
Program Stacking: Combine HUBZone with other SBA programs like WOSB or 8(a).
Eligibility:
Meet SBA small business size standards
51% owned and controlled by U.S. citizens (or approved entities)
Principal office in a HUBZone
At least 35% of employees must live in a HUBZone
Use the HUBZone map to check your location eligibility.
Women-Owned Small Business (WOSB) Federal Contract Program
Designed to increase the number of federal contracts awarded to women-owned businesses in industries where they’ve been historically underrepresented.
Key Benefits:
Exclusive Contracts: Reserved awards in over 300 NAICS industries
EDWOSB Opportunities: Additional set-asides for economically disadvantaged women
Cross-Program Access: WOSB-certified firms can also compete under HUBZone or 8(a) if eligible
Eligibility:
Must be a small business under SBA standards
At least 51% owned and controlled by U.S. citizen women
Women must manage daily operations and long-term strategy
For EDWOSB, meet limits on personal net worth, income, and assets
Certification is available through the SBA or approved third-party certifiers.
Why These Programs Matter for Black Women-Owned Businesses
Reduced Competition: Set-aside contracts limit the bidder pool, increasing your chances of winning.
Access to Federal Dollars: Billions in federal contracts are earmarked annually for small, minority, and women-owned firms.
Past Performance: Winning smaller contracts helps you build a track record, critical for scaling to larger awards.
Mentorship & Support: Many certifications come with access to business training, matchmaking events, and grant resources.
Next Steps: How to Get Started
Check Eligibility for HUBZone and/or WOSB
Get Certified via certify.sba.gov or an approved partner
Register on SAM.gov to be eligible for federal contracts
Attend SBA and PTAC events to learn about upcoming bids and get proposal support
Leverage Local Support: Work with your city’s Small Business Development Center (SBDC) or Women’s Business Center
Final Thoughts
Black women are the fastest-growing group of entrepreneurs in the U.S., yet they remain underrepresented in federal contracting. Federal set-aside programs are designed to change that. With the right certifications, strategy, and persistence, Black women-owned businesses can secure life-changing government contracts that build generational wealth and community impact.

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