Federal Set-Aside Program
Small Disadvantaged Business (SDB)
A self-represented status for small businesses owned by socially and economically disadvantaged individuals, used mainly to meet federal subcontracting goals.
Who qualifies
- At least 51% owned and controlled by one or more socially and economically disadvantaged individuals
- Small under your primary NAICS size standard
- (8(a)-certified firms automatically qualify as SDB)
How to get certified
SDB is self-represented in SAM.gov (no separate SBA application unless you pursue 8(a)). Primes use it to count toward their small-disadvantaged-business subcontracting goals.
Key benefits
- Helps prime contractors meet the government-wide 5% SDB subcontracting goal — making you an attractive teaming partner
- A stepping stone toward the formal 8(a) program
Sole-source authority
SDB itself has no sole-source authority — it’s a representation, not a set-aside. For sole-source disadvantaged awards, pursue 8(a) certification.
Common questions
Is SDB the same as 8(a)?
No. SDB is a self-representation used for subcontracting goals. 8(a) is a formal SBA-certified program with set-aside and sole-source contracting authority. All 8(a) firms are SDBs; not all SDBs are 8(a).
Related programs
Bidding a SDB set-aside?
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See all federal set-aside programs, the NAICS code guides, or the contracting glossary.