Note: The original answer here had (as noted in the comments) an incorrect calculation of $(Ax)^T Ax$. I've replaced it by the trivial bound $(Ax)^T Ax \geq 0$, which weakens the bound to it doesn't quite match the Hadamard bound anymore. ----------------- Here's something which shows the constructions yielding $2n$ are almost tight. Let $A$ be the $|U| \times n$ matrix where the entry $a_{ij}$ is equal to $1$ if $i \in S_j$ and $-1$ otherwise, and let $B=A^T A$. Then $B$ is an $n \times n$ matrix having diagonal entries equal to $|U|$ and off-diagonal entries equal to $$b_{ij}=|U| - 2 (|S_j \cap S_i^C| + |S_i \cap S_j^C|)$$ $$=|U|-4(n- |S_i \cap S_j| ) \leq |U| - 2n.$$ Letting $x$ be the $n \times 1$ vector of $1$'s, this implies $$(Ax)^T (Ax) = \sum_i \sum_j b_{ij} = n |U| + \sum_{(i,j), i \neq j} b_{ij} \leq n|U| + n(n-1) (|U|-2n).$$ But this must be at least $0$, which implies $|U| \geq 2n-2$. If $n$ is odd, we can improve this slightly to $2n-1$ by replacing the bound $|S_i \cap S_j| \leq n/2$ by $|S_i \cap S_j| \leq (n-1)/2$.