Highlight 3 smallest values with criteria

Generic formula 

=AND(A1=criteria,B1<=SMALL(IF(criteria,values),3))

Summary 

To highlight the 3 smallest values that meet specific criteria, you can use an array formula based on the AND and SMALL functions. In the example shown, the formula used for conditional formatting is:

=AND($B5=$E$5,$C5<=SMALL(IF(color=$E$5,amount),3))

Where "color" is the named range B5:B12 and "amount" is the named range C5:C12.