SDVOSB vs HUBZone: Which Set-Aside Is Right for You?
Comparing two popular small business set-aside programs.
Introduction
Two of the most powerful federal set-aside programs are SDVOSB (Service-Disabled Veteran-Owned Small Business) and HUBZone (Historically Underutilized Business Zones). Both offer significant advantages for federal contracting—but which one is right for your business?
In this guide, we'll compare both programs head-to-head using real contract data from Fed-Spend.
SDVOSB Overview
The SDVOSB program supports small businesses owned and controlled by service-disabled veterans.
Eligibility Requirements:
Key Benefits:
HUBZone Overview
The HUBZone program supports small businesses in historically underutilized areas to stimulate economic development.
Eligibility Requirements:
Key Benefits:
Head-to-Head Comparison
| Factor | SDVOSB | HUBZone |
|---|---|---|
| FY2025 Contract Volume | $28.4B | $12.1B |
| Number of Certified Firms | 18,200 | 8,400 |
| Avg Contract Value | $1.56M | $1.44M |
| Top Agency | VA ($9.2B) | Army ($2.8B) |
| Sole-Source Threshold | $5M | $4M/$7M |
| Verification Required | Yes (VetBiz) | Yes (SBA) |
| Location Requirement | No | Yes (35% employees) |
| Certification Time | 60-90 days | 90-120 days |
Contract Volume Analysis
Based on Fed-Spend data for FY2025:
SDVOSB Top Agencies:
HUBZone Top Agencies:
Which Should You Choose?
Choose SDVOSB If:
Choose HUBZone If:
Why Not Both?
Many businesses qualify for multiple certifications. If you're a service-disabled veteran with an office in a HUBZone, you could potentially qualify for both programs—dramatically expanding your opportunity pool.
The Fed-Spend Advantage
Fed-Spend tracks all SDVOSB and HUBZone set-aside opportunities in real-time:
Conclusion
Both SDVOSB and HUBZone offer significant advantages for federal contracting. The right choice depends on your eligibility, location, and target agencies.
SDVOSB offers more contract volume overall, especially at the VA.
HUBZone offers unique price preferences that can tip competitive bids in your favor.
If you qualify for both, pursue dual certification to maximize your opportunity pool.
Ready to find set-aside contracts? Search SDVOSB opportunities → | Search HUBZone opportunities →
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