Small Business Program Goals

Each year, the U.S. Small Business Administration (SBA) negotiates socioeconomic procurement preference program, or ‘contracting,’ goals with Federal agencies. These goals are based on statute, and require that, in the aggregate, agencies award contracts as follows:

Total Small Business Goal - 39%

Small Business (SB) - 23%
Small Disadvantaged Business (SDB) - 5%
Women-Owned Small Business (WOSB) - 5%
Veteran-Owned Small Business (VOSB) - 5%
Service-Disable Veteran-Owned Small Business (SDVOSB) - 3%
Historically Underutilized Business Zone (HUBZone) - 3%

Two (2) Key Points

1. Agencies have to meet these goals through procurement strategies.

2. Prime contractors are required to meet these goals through subcontracting on large contracts.