SDVOSB Certification: How Veterans Win Federal Contracts

Veterans who start businesses bring discipline, leadership, and mission focus that translate directly into business success. The federal government recognizes this — and has created a certification program that gives service-disabled veteran-owned businesses a significant advantage in federal contracting.

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program sets aside specific federal contracts exclusively for businesses owned and controlled by veterans with service-connected disabilities. Here's everything you need to know.

The SDVOSB program is administered by the Small Business Administration (SBA) and allows contracting officers to set aside contracts specifically for SDVOSB-certified businesses. This means you're competing against a much smaller pool of vendors — only other SDVOSB-certified businesses — rather than the entire market.

There's also a related certification: VOSB (Veteran-Owned Small Business), which is open to all veterans regardless of disability status. However, SDVOSB carries additional benefits, including sole-source contract authority in certain situations.

To qualify for SDVOSB certification, your business must meet all of the following:

Veteran status with service-connected disability:

• You must be a veteran of the U.S. military (Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, or National Guard/Reserve)
• You must have a service-connected disability rating from the Department of Veterans Affairs (VA) or Department of Defense (DoD)
• The disability rating can be any percentage — even 0% with a determination of service connection

Ownership:

• One or more service-disabled veterans must own at least 51% of the business
• For publicly traded companies, service-disabled veterans must own at least 51% of each class of voting stock

Control:

• A service-disabled veteran must control the day-to-day management and long-term decision-making of the business
• If the qualifying veteran has a permanent and severe disability, their spouse or permanent caregiver may control the business

Small business size:

• The business must qualify as "small" under SBA size standards for its primary NAICS code

As of January 1, 2023, the SBA took over SDVOSB certification from the VA. All SDVOSB certifications are now processed through the SBA's Veteran Small Business Certification (VetCert) program at veterans.certify.sba.gov.

You'll need:

• DD-214 (Certificate of Release or Discharge from Active Duty)
• VA disability rating letter or DoD disability determination
• Business formation documents (articles of incorporation, operating agreement, etc.)
• Ownership documentation (stock certificates, membership certificates)
• Personal financial statements
• Business financial statements

Your business must be registered and active in SAM.gov before you can apply for SDVOSB certification. If you're not registered, complete that step first.

Create an account at veterans.certify.sba.gov and complete the online application. You'll upload all required documents and answer questions about your business structure, ownership, and management.

The SBA will review your application and may request additional documentation. Processing times vary, but plan for 60–90 days. You'll receive email notifications about your application status.

SDVOSB certification must be renewed annually. You'll certify that your business still meets all eligibility requirements. Report any significant changes to ownership or management promptly.

Search for SDVOSB set-asides. On SAM.gov, filter contract opportunities by "Set-Aside Type: Service-Disabled Veteran-Owned Small Business." These are contracts only SDVOSB-certified businesses can bid on.

Pursue VA contracts. The Department of Veterans Affairs has a specific program — the Veterans First Contracting Program — that gives priority to SDVOSB and VOSB businesses for VA contracts. The VA is one of the largest federal agencies and spends billions annually on goods and services.

Sole-source opportunities. Contracting officers can award sole-source contracts to SDVOSB businesses (without competition) for contracts up to $4.5 million for services and $7.5 million for manufacturing. This is a significant advantage — you can win a contract without competing at all if you have the right relationship with a contracting officer.

Combine with other certifications. If you also qualify as a Woman-Owned Small Business (WOSB) or are located in a HUBZone, you can hold multiple certifications and access a broader range of set-aside opportunities.

Both certifications are available to veterans, but they're not the same:

If you have a service-connected disability, always pursue SDVOSB — it provides more benefits than VOSB alone.

What if my disability rating is 0%? A 0% disability rating still qualifies as a service-connected disability for SDVOSB purposes, as long as the VA or DoD has made a formal determination of service connection.

Can I have a non-veteran business partner? Yes, but the service-disabled veteran(s) must own at least 51% of the business and control day-to-day operations and long-term decisions.

Does my disability have to be related to my business? No. The nature of your disability has no bearing on what type of business you can certify.

SDVOSB certification is one of the most valuable tools available to veteran entrepreneurs. The application process requires careful documentation, but the access it provides — to set-aside contracts, sole-source opportunities, and VA Veterans First priority — makes it well worth the effort.

If you'd like help navigating the certification process, contact RickerTime Consulting. As a certified SDVOSB ourselves, we understand the process from the inside.