Small Business Set-Aside Program

Service-Disabled Veteran-Owned Small Business (SDVOSB) Program

The SDVOSB program provides contracting opportunities for small businesses owned and controlled by service-disabled veterans. This program recognizes the sacrifices made by veteran entrepreneurs with service-connected disabilities and provides them preferential access to federal contracting opportunities.

3% of contracts

Government Goal

$4.5M (services)

Sole Source Limit

Vets First priority

VA Goal

SBA (since 2023)

Certification

Eligibility Requirements

Small Business Status

Must qualify as a small business under SBA size standards for your primary NAICS code

Service-Disabled Veteran Ownership

At least 51% owned by one or more service-disabled veterans with a disability rating from the VA

Control

Service-disabled veteran(s) must control the management and daily business operations

Unconditional Ownership

Veteran's ownership must be unconditional and direct (no complex ownership structures that dilute control)

Permanent & Total Disability Exception

If the veteran has a permanent and total disability, the spouse or caregiver may manage the business

How to Apply

Certification timeline: Approximately 90 days. The transition from VA to SBA certification in 2023 has streamlined the process.

Obtain VA Disability Rating

Must have a service-connected disability rating letter from the Department of Veterans Affairs

Register in SAM.gov

Complete SAM registration and obtain Unique Entity ID (UEI)

Create Certify.SBA.gov Account

Set up account on the SBA certification platform

Gather Documents

Collect VA disability letter, DD-214, business formation documents, ownership documentation

Complete Application

Fill out SDVOSB application with all required information

Submit and Await Decision

Submit application and respond promptly to any SBA requests

Program Benefits

Sole-source contracts up to $4.5 million (manufacturing up to $7 million)

SDVOSB set-aside contracts at all federal agencies

VA Vets First preference (VA SDVOSB/VOSB contracting priority)

Access to veteran-specific GWACs like VETS 2

Subcontracting opportunities with large primes

Can be combined with other certifications (8(a), HUBZone, WOSB)

No program time limit

Contract Types Available

SDVOSB Sole SourceSDVOSB Set-Aside (competitive)VA Vets First contractsVETS 2 GWAC task ordersCombined set-asides (e.g., 8(a)/SDVOSB)

Common Mistakes to Avoid

Not having proper documentation of service-connected disability
Complex ownership structures that dilute veteran control
Not demonstrating day-to-day control by veteran owner
Confusion about VA vs SBA certification requirements
Failing to update certification after ownership changes
Not understanding the Vets First rule at VA

Frequently Asked Questions

What qualifies as a service-connected disability?

Any disability incurred or aggravated during active military service and documented by the VA with a disability rating. Any percentage (1%-100%) qualifies for SDVOSB.

Did certification move from VA to SBA?

Yes, as of January 2023, SDVOSB certification moved from VA's VetBiz to SBA's certify.sba.gov. VA-certified firms were migrated, but new applicants apply through SBA.

What is the Vets First program?

Vets First is a VA-specific contracting priority that gives SDVOSB and VOSB firms preference on VA contracts. VA must consider veteran-owned businesses first.

Can a surviving spouse own an SDVOSB?

In certain circumstances, if the veteran passes away or is permanently and totally disabled, a spouse may be permitted to maintain the certification for a limited period.

Tips for Success

Ensure VA disability rating documentation is current
Clearly document your role in daily operations
Build relationships with agency small business offices
Target VA contracts where SDVOSB has priority
Consider combining with other certifications
Join veteran business organizations for networking

Program Information

Administrator:Small Business Administration (SBA) - certification moved from VA to SBA in 2023

Government Goal:3% of all federal contracting dollars

Renewal:Certification must be renewed every 3 years. Annual representations are required in SAM.gov. If disability status changes, firms must notify SBA.