The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides significant support through federal contracting opportunities and exclusive benefits. Service-disabled veterans who own at least 51% of their business and maintain operational control can access approximately $37 billion in potential contracts for FY2023. The program requires VA disability certification, proper documentation, and completion of SBA verification processes. Federal agencies must meet a 5% contracting goal for SDVOSBs, while additional advantages await through various procurement channels.
Core Eligibility Requirements for SDVOSB Certification
While traversing the SDVOSB certification process, businesses must meet specific core eligibility requirements across five essential categories: ownership structure, disability verification, small business qualification, operational control, and documentation standards.
Service-disabled veterans must maintain at least 51% ownership and demonstrate unconditional control of their business operations. The veteran owner must possess a minimum 10% service-connected disability rating from the VA or DoD, verified through official documentation. After December 31, 2022, businesses must complete SBA verification processes instead of self-certification.
The business must qualify as “small” under SBA size standards, typically employing fewer than 300 people and meeting industry-specific revenue thresholds. Veterans must occupy the highest executive position and maintain majority voting rights without super-majority restrictions. These requirements help ensure fair competition opportunities for service-disabled veterans in federal contracting. Users should conduct independent verification of all qualification criteria to ensure compliance with current standards.
Required documentation includes DD Form 214, VA disability certification, and thorough business records demonstrating veteran ownership and control.
Federal Contract Opportunities and Business Advantages
The landscape of federal contracting offers substantial opportunities for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) through dedicated programs and enhanced access to government contracts. Federal agencies must now meet a 5% contracting goal for SDVOSBs, representing approximately $37 billion in potential contracts for FY2023. Service-disabled veterans must maintain day-to-day control of their businesses to qualify for these opportunities.
Service-disabled veteran entrepreneurs can tap into billions in federal contracts through dedicated programs designed to prioritize their businesses.
SDVOSBs can access contracts through multiple channels, including sole-source awards and set-aside competitions. The VA’s Vets First Program provides exclusive opportunities, while GSA Multiple Award Schedule contracts enable broader marketplace access. Verification through SBA VetCert certification is now mandatory for all SDVOSBs seeking federal contracts. While disclaimer notices emphasize independent verification, the certification process helps ensure program integrity.
In FY2022, SDVOSBs received $28.1 billion in prime contracts, demonstrating the program’s success.
Key advantages include SAM.gov visibility, VetCert certification benefits, and eligibility for both federal and VA-specific contracts. SDVOSBs can also participate as subcontractors through teaming agreements, providing entry points for smaller businesses.
Frequently Asked Questions
How Long Does the SDVOSB Certification Process Typically Take?
The SDVOSB certification process typically takes 90 days from submission of a complete application.
However, the total timeline can extend to 4-5 months when including document preparation and SAM.gov registration.
Incomplete applications or requests for additional information may cause delays.
Third-party assistance firms report expedited approvals with 98% acceptance rates.
Veterans must maintain certification through reverification every three years and keep SAM.gov profiles current.
Can Multiple Service-Disabled Veterans Combine Their Ownership Percentages to Reach 51%?
Yes, multiple service-disabled veterans can combine their ownership percentages to meet the 51% threshold requirement for SDVOSB certification.
Their combined ownership must be direct and unconditional, with no restrictions on their rights or control. The profit distributions must align proportionally with their ownership percentages, and they must collectively maintain control of voting interests.
All participating veterans must be actively involved in management and operational decision-making processes.
What Happens if My Business Grows Beyond Small Business Size Standards?
When a business exceeds SBA size standards for its primary NAICS code, it loses SDVOSB certification eligibility and associated federal contracting benefits.
The company can no longer participate in SDVOSB set-aside contracts, sole-source awards, or qualifying joint ventures.
Additionally, prime contractors cannot count the business toward SDVOSB subcontracting goals.
Companies facing this situation should consider alternative certifications, restructuring operations, or diversifying into commercial markets to maintain growth opportunities.
Are Surviving Spouses Eligible to Maintain SDVOSB Status After Veteran’s Death?
Surviving spouses can maintain SDVOSB status under specific conditions.
The veteran must have had a 100% service-connected disability or died due to service-connected disabilities, and the business must have been CVE-verified before death.
The spouse must inherit majority ownership and submit updated documentation, including VA Form 0877.
When these criteria are met, the surviving spouse receives a 10-year eligibility period, provided they maintain program compliance and complete reverification requirements.
Can State-Level Contracts Be Accessed Through SDVOSB Certification?
SDVOSB certification applies exclusively to federal contracting opportunities and does not automatically grant access to state-level contracts.
Each state maintains its own procurement regulations and certification requirements separate from federal programs.
While some states may offer informal preferences for veteran-owned businesses, companies seeking state contracts must pursue state-specific certifications and registrations.
The SDVOSB program’s benefits and set-asides are limited to federal agency contracting channels.
