SDVOSB vs HUBZone: Which Set-Aside Is Right for You?
Comparing two popular small business set-aside programs.
Fed-Spend Research Team•January 18, 2026•7 min read
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:
At least 51% owned by one or more service-disabled veterans
Daily operations controlled by service-disabled veterans
Meet SBA size standards for your NAICS codes
Service-connected disability rating from VA
Key Benefits:
**Sole-source contracts** up to $5 million
**Set-aside competitions** limited to verified SDVOSBs
**VA preference** - VA has 3% SDVOSB contracting goal
**Evaluation credit** on some competitive procurements
HUBZone Overview
The HUBZone program supports small businesses in historically underutilized areas to stimulate economic development.
Eligibility Requirements:
Principal office in a HUBZone
At least 35% of employees reside in HUBZones
Meet SBA size standards
Owned by U.S. citizens
Key Benefits:
**Sole-source contracts** up to $4 million (goods) / $7 million (manufacturing)
**10% price evaluation preference** in full & open competitions
**Set-aside competitions** limited to HUBZone businesses
**Subcontracting opportunities** from large contractors
Head-to-Head Comparison
| Factor | SDVOSB | HUBZone |
|--------|--------|---------|
| **FY2025 Contract Volume** | $28.4B | $12.1B |
| **Number of Certified Firms** | 18,200 | 8,400 |
| **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:
**VA** - $9.2B (32% of all SDVOSB contracts)
**DOD** - $8.1B (29%)
**GSA** - $3.4B (12%)
**DHS** - $2.1B (7%)
**HHS** - $1.8B (6%)
HUBZone Top Agencies:
**Army** - $2.8B (23%)
**Navy** - $2.1B (17%)
**Air Force** - $1.9B (16%)
**VA** - $1.4B (12%)
**GSA** - $1.1B (9%)
Which Should You Choose?
Choose SDVOSB If:
You're a service-disabled veteran (or owned by one)
You want to target VA contracts
Location flexibility is important
You want faster certification
Your industry has strong VA/DOD presence
Choose HUBZone If:
Your business is located in an underutilized area
You can maintain 35% HUBZone employees
You want the 10% price preference on open competitions
Manufacturing is your primary business
You're already in a qualifying zone
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:
**Filter by set-aside type** to see only relevant opportunities
**Track agency spending** by certification type
**Set alerts** for new SDVOSB or HUBZone opportunities
**Analyze competition** to see how many firms bid on similar contracts
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.