Veteran Owned Business Certification
VOSB vs SDVOSB: Which Applies to You
Veteran-Owned Small Business (VOSB) certification requires that the business be at least 51% owned and controlled by one or more veterans who served in the US military (Army, Navy, Air Force, Marines, Coast Guard, or Space Force) and were discharged under conditions other than dishonorable. The veteran must control the daily management and operations of the business. VOSB certification provides recognition and some benefits but has fewer dedicated contract set-asides than SDVOSB.
Service-Disabled Veteran-Owned Small Business (SDVOSB) certification adds the requirement that the veteran owner has a service-connected disability rating from the Department of Veterans Affairs. Any disability rating (even 0%) qualifies, as long as it is service-connected and documented by the VA. SDVOSB certification unlocks the most valuable contract opportunities because the federal government has a specific goal of awarding 3% of all federal contracting dollars to SDVOSB businesses. This represents approximately $25 billion or more in annual contract awards. SDVOSB businesses can receive sole-source contracts (no competition) up to $4.5 million for services and $7.5 million for manufacturing.
If you have any service-connected disability, no matter how minor, apply for SDVOSB rather than VOSB. The additional contract opportunities are substantial and the application process is essentially the same. If you served but do not have a service-connected disability, VOSB certification is still worth pursuing for the recognition and the more limited set-aside opportunities available to veteran-owned businesses.
Eligibility Requirements
For both VOSB and SDVOSB, the business must meet these criteria: the business must be a small business as defined by the SBA's size standards for its industry (NAICS code), at least 51% owned and controlled by one or more qualifying veterans, the veteran must hold the highest officer position or have equivalent management duties, the veteran must manage the daily business operations, and the business must be a for-profit entity operating in the United States. For SDVOSB specifically, the veteran owner must have a service-connected disability as documented by the VA. If the veteran has a permanent and total disability, the business may be owned and controlled by the veteran's spouse or permanent caregiver.
The "control" requirement means the veteran must actually run the business, not just own shares while someone else makes all the decisions. The SBA looks at who signs checks, who approves major purchases, who hires and fires employees, who makes strategic decisions, and who represents the company to clients and the government. If a non-veteran runs the business while the veteran serves as a figurehead owner, the application will be denied.
Application Process
You will need: DD-214 (Certificate of Release or Discharge from Active Duty) showing honorable or general discharge, VA disability rating letter if applying for SDVOSB, business formation documents (Articles of Organization or incorporation), operating agreement or bylaws, EIN confirmation, three years of business tax returns (or all available returns if the business is less than three years old), three years of personal tax returns for all owners, current financial statements (balance sheet and income statement), business bank statements, resumes for all owners and key officers, and proof of US citizenship for all veteran owners.
The SBA's VetCert program is the sole authority for VOSB and SDVOSB certification for all federal agencies. Previously, the VA's Center for Verification and Evaluation (CVE) handled certification for VA contracts while businesses could self-certify for other agencies. Since January 2023, SBA VetCert is the single certification required for all federal contracting. Apply through the SBA's online portal at vetcert.sba.gov. The application is free. Create an account, complete the online questionnaire about your business structure and veteran ownership, and upload all required documents.
The SBA may request additional documentation or clarification during the review process. Respond promptly, as delays in your response extend the overall processing time. The SBA may also conduct a site visit or virtual interview to verify that the veteran owner genuinely controls the business operations. Be prepared to discuss your role in detail: what decisions you make, how you spend your time, what authority you have over finances and personnel, and how the business operates on a day-to-day basis. Processing time is typically 60 to 90 days from the date your complete application is received.
VOSB and SDVOSB certifications are valid for three years. You must recertify before expiration to maintain your status. Between certification periods, you are required to notify the SBA of any changes in ownership, control, or business structure that could affect eligibility. Misrepresenting your veteran or disability status to obtain federal contracts is a federal offense that can result in fines, imprisonment, and permanent debarment from government contracting.
Federal Contract Opportunities
The federal government is the largest purchaser of goods and services in the world, spending over $600 billion annually on contracts. The 3% SDVOSB goal means approximately $18 to $25 billion is targeted for service-disabled veteran-owned businesses. These contracts cover virtually every product and service category: office supplies, IT services, construction, manufacturing, janitorial services, consulting, food service, transportation, and much more.
Set-aside contracts restrict competition to certified SDVOSB businesses. Instead of competing against every company in America, you compete only against other SDVOSB businesses in your industry. Sole-source contracts go even further, awarding the contract to a single SDVOSB business without any competition, up to $4.5 million for services and $7.5 million for manufacturing. Contracting officers can award sole-source contracts when they determine that only one SDVOSB business can fulfill the requirement, making relationship building with government buyers a valuable activity.
To find available contracts, search SAM.gov (the System for Award Management), register your business in SAM (required for all federal contractors), and create a profile in the SBA's Dynamic Small Business Search database so contracting officers can find you. The SBA's Boots to Business program and local Procurement Technical Assistance Centers (PTACs) provide free training and one-on-one assistance for veteran entrepreneurs navigating the federal contracting process.
Beyond Federal Contracts
Many state and local governments have their own veteran-owned business programs with set-asides and preferences for state contracts. Large corporations also increasingly include veteran-owned businesses in their supplier diversity programs. Organizations like the National Veteran-Owned Business Association (NaVOBA) provide networking, education, and advocacy for veteran entrepreneurs. Grant programs specifically for veteran-owned businesses provide additional funding opportunities. The veteran entrepreneurship ecosystem is one of the strongest support networks available to any business owner demographic.
For ecommerce businesses, the certification is most valuable if you sell products that government agencies or large corporations purchase, or if you offer services (consulting, IT, logistics) to business clients. Even consumer-focused ecommerce businesses benefit from the "veteran-owned" designation in marketing, as many consumers actively prefer to support veteran-owned businesses when given the choice.