Glossary · Reading the business
Small business set-aside contract
In short
Government contracts reserved exclusively for small businesses, typically under specific SBA programs like 8(a) or WOSB. These contracts are a significant revenue source for many small businesses.
What it means in a deal
If your target business relies heavily on set-aside contracts, you must ensure it (and you, post-acquisition) will continue to qualify as a small business under the relevant size standards. Affiliation rules are critical here. Losing this status means losing access to these contracts.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Small business set-aside contract
- Does the SBA set specific repayment schedules for 7(a) loans?
- How is the interest rate typically set for an SBA 7(a) loan?
- How does a lender determine affiliation when a prior owner retains less than 20% equity and a consulting contract?
- Does my business need to be set up as an LLC or Corporation for an SBA 7(a) loan?
- Does the SBA set all the specific loan terms like interest rates and repayment?
- Does the Small Business Administration (SBA) ever directly lend money to small businesses?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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