SDVOSB Certification: Complete Guide for Veteran-Owned Businesses
Learn how to get Service-Disabled Veteran-Owned Small Business (SDVOSB) certification. Understand VA and SBA requirements, application process, and strategies for winning veteran set-aside contracts.
Quick Answer
SDVOSB (Service-Disabled Veteran-Owned Small Business) certification provides access to federal set-aside contracts. The federal government has a 3% SDVOSB contracting goal. Since 2023, SBA certification is required for all federal SDVOSB set-asides, while VA certification (VetCert) is additionally required for VA contracts.
What is SDVOSB Certification?
The SDVOSB program helps service-disabled veterans access federal contracting opportunities by providing set-aside and sole-source contracts. A service-disabled veteran is one who has a disability rating from the VA for injuries or illnesses incurred or aggravated during active military service.
There are two related certifications: VOSB (Veteran-Owned Small Business) and SDVOSB (Service-Disabled VOSB). SDVOSB provides access to more contracting preferences due to the federal 3% goal.
Key SDVOSB Advantages
- 3% federal contracting goal ensures significant opportunities
- Sole-source contracts up to $4.5M (manufacturing) / $7M (other)
- Set-aside competitions limited to other SDVOSBs
- VA contracts have additional SDVOSB preferences (Vets First)
- Subcontracting credit makes you attractive to prime contractors
Benefits of SDVOSB Status
Federal Agency Set-Asides
All federal agencies must meet the 3% SDVOSB goal. Agencies routinely set aside contracts for SDVOSB competition across all industries.
VA Vets First Program
The VA prioritizes SDVOSBs and VOSBs for contracting through the Vets First program, creating additional opportunities beyond other agencies.
Sole-Source Authority
Contracting officers can award sole-source contracts to SDVOSBs up to $4.5M for manufacturing and $7M for other contracts without competition.
Prime Contractor Demand
Large contractors need SDVOSB subcontractors to meet small business subcontracting goals, creating teaming and subcontracting opportunities.
SDVOSB Eligibility Requirements
To qualify for SDVOSB status, your business must meet all of the following requirements:
Small Business Status
Meet SBA size standards for your primary NAICS code based on annual revenue or employee count.
Service-Disabled Veteran Status
At least one owner must be a veteran with a service-connected disability rating from the VA (any percentage qualifies—even 0%).
51% Ownership
One or more service-disabled veterans must unconditionally own at least 51% of the business.
Control Requirements
Service-disabled veteran owners must control management and daily business operations. The managing veteran must hold the highest officer position and work full-time.
Permanent & Total Disability
If the service-disabled veteran has a permanent and total disability and cannot manage daily operations, the spouse or permanent caregiver can manage the business on their behalf while maintaining SDVOSB eligibility.
VA vs SBA Certification
Since January 2023, there are now two certification paths. Understanding which you need is critical.
SBA Certification
Required for ALL federal SDVOSB set-asides (except VA)
- • Administered through certify.sba.gov
- • Required for DoD, GSA, and all other agencies
- • Valid for 3 years
- • Similar eligibility requirements to VA
VA Certification (VetCert)
Required specifically for VA contracts (Vets First)
- • Administered through vetcert.va.gov
- • Required only for VA contracts
- • Valid for 3 years
- • Additional VA-specific requirements apply
Get Both Certifications
If you want to pursue both VA and non-VA federal contracts, you need BOTH certifications. Apply for SBA certification first, then VA VetCert. The SBA certification process is more streamlined.
SDVOSB Application Process
Timeline: 30-90 Days (SBA) / 45-120 Days (VA)
Processing times vary. Complete and accurate applications process faster. Have all documents ready before starting.
Required Documentation
- DD-214 (Certificate of Release or Discharge from Active Duty)
- VA disability rating letter or decision letter
- Business formation documents (articles, operating agreement)
- Ownership documentation (stock certificates, membership certificates)
- Business and personal tax returns (typically 3 years)
- Proof of veteran's full-time involvement (pay stubs, resumes)
Application Steps
- 1Ensure SAM.gov registration is current
- 2Create account at certify.sba.gov (SBA) or vetcert.va.gov (VA)
- 3Complete SDVOSB application form
- 4Upload all required supporting documents
- 5Submit and respond to any requests for additional information
Winning SDVOSB Contracts
Monitor Set-Asides Daily
Search SAM.gov for SDVOSB set-aside and sole-source notices. Set up saved searches and email alerts.
Target VA Opportunities
The VA has the strongest SDVOSB preferences. Get VetCert certified and focus on VA contracting.
Pursue Subcontracting
Large primes need SDVOSB subcontractors. Build relationships with defense and VA prime contractors.
Attend Veteran Events
National Veteran Small Business Week, VOSB matchmaking events, and veteran-focused conferences.
Maintaining SDVOSB Certification
Ongoing Requirements
- Annual Recertification - Confirm continued eligibility annually
- Notify of Changes - Report ownership or control changes within 30 days
- Maintain Small Business Size - Continue to meet size standards
- Full Recertification - Required every 3 years
Frequently Asked Questions
What disability rating percentage qualifies?
Any service-connected disability rating qualifies, including 0%. What matters is that the VA has determined the disability is connected to military service.
Can I have a non-veteran business partner?
Yes, but service-disabled veterans must own at least 51% and control the business. Non-veteran partners can own up to 49%.
Is VOSB the same as SDVOSB?
No. VOSB (Veteran-Owned) requires veteran ownership but not service-connected disability. SDVOSB requires service-disabled status. SDVOSB has more contracting preferences (3% goal) than VOSB.
Can a Reserve or Guard member qualify?
Yes, if they have a VA service-connected disability rating. Reserve and Guard members who were activated and received a service-connected disability can qualify.
What happens if the veteran owner dies?
The surviving spouse may maintain SDVOSB status for a limited period (typically 3 years or until remarriage) to allow for transition. Specific rules apply—consult SBA guidance.
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