How Do I Qualify for SDVOSB Certification?

Quick Answer
To qualify for SDVOSB certification, you must be a veteran with a VA service-connected disability rating, own at least 51% of a small business, and control its daily management. Apply through the SBA's VetCert program at veterans.certify.sba.gov.

What SDVOSB Means

SDVOSB stands for Service-Disabled Veteran-Owned Small Business. It is a federal certification that qualifies your business for set-aside contracts — competitions where only SDVOSB-certified businesses can bid. When an agency issues an SDVOSB set-aside, large corporations and non-veteran-owned businesses are excluded entirely.

This is not a preference or a tie-breaker. It is a hard restriction. If a contract is set aside for SDVOSB, and you hold the certification, you are competing only against other service-disabled veteran-owned businesses.

The Three Requirements

1. Service-Connected Disability

You must be a veteran with a service-connected disability rating from the Department of Veterans Affairs. The rating can be any percentage — even 0% (which is a valid rating that acknowledges a connection between your condition and your service). You do not need to be severely disabled or unable to work. The rating simply confirms that your disability is connected to your military service.

2. Ownership — 51% Minimum

You must own at least 51% of the business. For corporations, this means at least 51% of all stock classes must be owned by the qualifying veteran. For LLCs, at least 51% of member interests. For partnerships, at least 51% of the partnership interest.

3. Control — Day-to-Day Management

You must control the daily management and long-term decision-making of the business. This means you must hold the highest officer position (President, CEO, Managing Member) and not be overruled by non-veteran board members, investors, or partners on management decisions.

The control requirement trips up many businesses. If you brought in outside investors or partners who have voting control, you may not meet the control standard even if you own 51%. SBA looks at operating agreements, bylaws, and actual business practices — not just what paperwork says.

How to Apply — VetCert

Since January 2023, SDVOSB certification is handled by the SBA through the Veteran Small Business Certification (VetCert) program. Previously, the VA handled VA-specific verification and self-certification was allowed for non-VA contracts. Now, SBA VetCert is the single certification for all federal SDVOSB set-aside contracts.

Steps to apply:

  1. Confirm your VA disability rating (get your rating letter from the VA)
  2. Ensure your business is registered and active in SAM.gov
  3. Go to veterans.certify.sba.gov
  4. Create an account and complete the online application
  5. Upload required documentation (VA rating letter, ownership documents, operating agreement)
  6. Wait for SBA review — typically 60-90 days
  7. Receive certification — valid for 3 years, then requires renewal

What Contracts You Can Access

Once certified, you can bid on:

Your SDVOSB status also counts toward agency small business goals, which means contracting officers may actively seek you out for sole-source awards (contracts awarded without competition) up to $4.5M for services.

Don't wait for a perfect opportunity to pursue certification. The process takes 60-90 days minimum. Start now so you're certified when the right contract appears. govprocure can show you SDVOSB set-asides in your industry so you know what to expect.
ThresholdAmountRule
Sole-source (services)Up to $4.5MAgency can award without competition
Sole-source (manufacturing)Up to $7MAgency can award without competition
Set-aside competitionAny amountSDVOSB-only bidding
SB creditAll awardsCounts toward agency SB goals

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