SDVOSB Certification Guide 2025: Requirements, Benefits & Application Process
Complete guide to Service-Disabled Veteran-Owned Small Business (SDVOSB) certification. Learn eligibility requirements, VA verification process, sole-source thresholds, and how to win set-aside contracts.
Quick Answer: What is SDVOSB Certification?
SDVOSB (Service-Disabled Veteran-Owned Small Business) certification allows veteran-owned businesses to compete for set-aside federal contracts. The federal government has a 3% contracting goal for SDVOSBs. Certification is FREE through the SBA's VetCert program and enables sole-source contracts up to $5 million (services) or $7 million (manufacturing).
What is SDVOSB Certification?
The Service-Disabled Veteran-Owned Small Business (SDVOSB) program is a federal initiative designed to help veteran entrepreneurs who have service-connected disabilities compete for government contracts. As of January 2023, all SDVOSBs must be verified through the SBA's VetCert program to be eligible for set-aside contracts.
The program recognizes the sacrifices of service-disabled veterans by providing them with preferential access to federal contracting opportunities. Unlike self-certification programs of the past, VetCert requires rigorous documentation to verify both veteran status and business ownership.
Key Program Changes (2023)
- ✓VetCert replaced VA's CVE (Center for Verification and Evaluation)
- ✓SBA now manages all SDVOSB verifications government-wide
- ✓Certification required for ALL federal SDVOSB set-asides (not just VA)
- ✓Existing VA-verified businesses were automatically transferred
Benefits of SDVOSB Certification
Set-Aside Contracts
Compete only against other SDVOSBs for designated contracts. Less competition means higher win rates.
Sole-Source Awards
Receive contracts up to $5M (services) or $7M (manufacturing) without competitive bidding.
3% Federal Goal
Agencies actively seek SDVOSB contractors to meet their 3% contracting goal—creating demand for your services.
Subcontracting Opportunities
Prime contractors often seek SDVOSB subcontractors to meet their small business subcontracting plans.
SDVOSB vs. VOSB: What's the Difference?
| Feature | SDVOSB | VOSB |
|---|---|---|
| Disability Requirement | Service-connected disability required | No disability required |
| Federal Contracting Goal | 3% | No specific goal |
| Sole-Source Authority | Yes ($5M/$7M) | Limited |
| Set-Aside Contracts | All agencies | Primarily VA |
Eligibility Requirements
To qualify for SDVOSB certification through VetCert, your business must meet ALL of the following criteria:
1. Veteran Status
- • Owner must be a veteran as defined by 38 U.S.C. 101(2)
- • Discharged under conditions other than dishonorable
- • Service-connected disability rating from the VA (any percentage qualifies)
2. Ownership Requirements
- • Service-disabled veteran(s) must own at least 51% unconditionally
- • Ownership must be direct (not through another entity)
- • Must have full ownership rights to capital and profits
3. Control Requirements
- • Service-disabled veteran must control day-to-day operations
- • Must hold highest officer position (CEO, President, etc.)
- • Must make long-term strategic decisions
- • Cannot be subject to formal or informal restrictions
4. Small Business Size
- • Must meet SBA size standards for your primary NAICS code
- • Size based on average annual receipts or employees (varies by industry)
- • Includes affiliates in size calculation
⚠️ Important: Permanent Caregiver Exception
If the service-disabled veteran has a permanent and total disability (100% P&T rating), a spouse or permanent caregiver may manage day-to-day operations while the veteran maintains strategic control. Documentation from the VA is required.
Application Process
SDVOSB certification is managed through the SBA's VetCert portal. The process is completely free and typically takes 90 days.
Create a VetCert Account
Visit veterans.certify.sba.gov and create an account. You'll need your SAM.gov registration (UEI) to proceed.
Gather Required Documents
Prepare the following documentation:
- • DD-214 (Certificate of Release or Discharge)
- • VA disability rating letter
- • Business formation documents (Articles of Incorporation, Operating Agreement)
- • Stock certificates or ownership documentation
- • Resumes of all owners and key personnel
- • Last 3 years of business tax returns
Complete the Application
Answer all questions about veteran status, business ownership, and control. Upload supporting documents as requested. Be thorough—incomplete applications are the #1 cause of delays.
Wait for Review
SBA reviews applications within 90 days. You may receive requests for additional documentation—respond promptly to avoid delays. Check your VetCert portal regularly for updates.
Receive Certification
Once approved, your SDVOSB status will appear in SAM.gov and you can begin bidding on set-aside contracts. Certification is valid for 3 years and must be renewed.
Sole-Source Contract Thresholds
One of the most valuable benefits of SDVOSB certification is eligibility for sole-source contracts—awards made without competitive bidding. Understanding these thresholds can help you target the right opportunities.
Including construction, professional services, IT, and maintenance
For businesses producing goods under manufacturing NAICS codes
Requirements for Sole-Source Awards
- ✓Contracting officer must have reasonable expectation that only one SDVOSB can provide the service
- ✓Award must be at a fair and reasonable price
- ✓Contract value must be within the threshold limits
- ✓SDVOSB must be verified in VetCert
Finding SDVOSB Contracts
Once certified, you need to actively search for SDVOSB set-aside opportunities. Here are the best ways to find them:
SAM.gov (Free)
The official federal procurement portal. Search for opportunities with "SDVOSB" or "Service-Disabled Veteran" in the set-aside field.
⚠️ Interface can be difficult; limited filtering options
BidFinds ($99/month)
AI-powered bid matching surfaces SDVOSB set-asides from federal, state, and local sources. Filter by certification type, location, and industry.
✓ Aggregates 50+ portals • AI matching • Daily alerts
Pro Tips for Finding SDVOSB Opportunities
- • Check VA OSDBU: The VA has the highest SDVOSB utilization—start there
- • Build relationships: Attend agency small business events and industry days
- • Pursue subcontracting: Prime contractors need SDVOSB partners for their subcontracting plans
- • Set alerts: Configure daily notifications for new SDVOSB opportunities in your NAICS codes
- • Target agencies: DoD, VA, and GSA have the highest SDVOSB spending
Common Mistakes to Avoid
❌ Incomplete Documentation
The #1 cause of application delays. Ensure ALL required documents are uploaded before submitting. Missing a single document can add weeks to your approval timeline.
❌ Ownership Structure Issues
The service-disabled veteran must own 51% unconditionally. Options, warrants, or convertible securities don't count. Review your operating agreement carefully.
❌ Control Documentation Problems
Your governing documents must clearly establish veteran control. Veto rights, supermajority requirements, or board control by non-veterans can disqualify your application.
❌ Bidding Before Verification
Don't bid on SDVOSB set-asides until your certification is complete and visible in SAM.gov. Awards to unverified businesses can be protested and overturned.
Frequently Asked Questions
How long does SDVOSB certification take?
The SBA aims to process applications within 90 days. However, incomplete applications or requests for additional documentation can extend this timeline. Submit a complete application to minimize delays.
Is SDVOSB certification free?
Yes, SDVOSB certification through the SBA's VetCert program is completely free. Be cautious of any service charging fees for certification—you can do it yourself at no cost.
What disability rating do I need?
Any service-connected disability rating qualifies—even 0%. The key is that the disability must be service-connected as documented by the VA. There is no minimum percentage requirement.
Can I have business partners who aren't veterans?
Yes, but the service-disabled veteran(s) must own at least 51% unconditionally and control the business. Non-veteran partners cannot have control rights that override the veteran owner.
How long is certification valid?
SDVOSB certification is valid for 3 years. You must recertify before expiration to maintain eligibility for set-aside contracts. Set a reminder 90 days before expiration.
Can I be SDVOSB and 8(a) certified?
Yes! You can hold multiple certifications simultaneously. Many contractors hold SDVOSB, 8(a), and HUBZone certifications to maximize their access to set-aside opportunities.
What if my application is denied?
You can request reconsideration within 90 days of denial. Address the specific deficiencies cited in the denial letter and provide additional documentation. Consider consulting with a government contracting attorney if issues persist.
Ready to Find SDVOSB Contracts?
BidFinds aggregates SDVOSB set-asides from federal, state, and local sources—all for $99/month. Our AI matches opportunities to your business profile so you never miss a relevant contract.
Start Your Free Trial→Ready to Find Your Next Contract?
Get instant access to thousands of government construction bids with our AI-powered platform.
Get Started