Last reviewed on May 12, 2026.
What SDVOSB and VOSB are
Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB) certifications give veterans access to set-aside and sole-source contracts at federal agencies, with particularly strong preference at the Department of Veterans Affairs through the "Vets First" contracting program. The federal government has a 3% SDVOSB contracting goal that applies government-wide.
Under recent statutory changes, SBA certifies veteran-owned firms for use across the federal government, succeeding the VA's earlier Center for Verification and Evaluation (CVE) program for non-VA work. The VA continues to operate Vets First Verification for purposes of VA's own sole-source authority.
Program Benefits
$28B+
Annual Veteran Contracts
Certification Requirements
SDVOSB Requirements
- 51% owned by service-disabled veterans
- VA disability rating or determination
- Daily management control
- Small business size standards
VOSB Requirements
- 51% owned by veterans
- Honorable discharge
- Daily management control
- Small business size standards
The certification process
Most SDVOSB and VOSB applications now move through the SBA via veterans.certify.sba.gov. The process typically covers:
- Confirming the veteran owner's status and, for SDVOSB, the service-connected disability through VA records
- Documenting ownership structure: who owns the equity, who controls the board, and how voting works
- Demonstrating that the qualifying veteran(s) run day-to-day operations and make long-term decisions
- Providing financial statements and tax returns to show legitimate business activity
- Confirming small business status under the relevant NAICS code's size standard
Processing times vary. Once approved, certification is generally valid for three years, subject to a recertification process and ongoing change-of-circumstance reporting.
How agencies use SDVOSB / VOSB status
- Set-asides. Contracting officers may restrict competition to SDVOSB firms when there are at least two responsible SDVOSBs likely to submit competitive offers — the "Rule of Two." VOSB set-asides exist primarily at the VA.
- Sole-source awards. Within statutory dollar thresholds, agencies (and especially the VA) can award directly to a single SDVOSB without competition.
- Subcontracting goals. Large prime contractors carry small business subcontracting plans that include SDVOSB and veteran-owned categories; primes seek qualified subs to meet those goals.
Common application pitfalls
- Ownership structures where the veteran technically holds 51% but does not actually control the company — common when a non-veteran spouse, partner, or investor retains operational authority.
- Bylaws or shareholder agreements that give a non-veteran a veto over major decisions, which SBA treats as a failure of unconditional control.
- Inadequate documentation of disability rating for SDVOSB, especially when the veteran owner is also the operations lead and has no separate disability paperwork on file.
- Treating certification as a substitute for capture work. Set-asides still require a competitive proposal, past performance, and active relationships with contracting officers.