SDVOSB Certification: Guide for Service-Disabled Veteran-Owned Businesses

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides federal contracting preferences to businesses owned by veterans with service-connected disabilities. The federal government has a statutory goal of awarding 3% of all federal prime contracting dollars to SDVOSBs.

In FY 2024, the government awarded approximately $28 billion to SDVOSBs, consistently exceeding the 3% goal. The Department of Veterans Affairs (VA) is the largest user of SDVOSB set-asides, but all federal agencies participate.

SDVOSB set-asides and sole-source awards are available across all NAICS codes — unlike WOSB, there are no industry restrictions. Sole-source awards can be up to $4.5 million for services and $8 million for manufacturing.

Since January 2023, SDVOSB certification is managed by the SBA (previously the VA's Center for Verification and Evaluation handled this). All SDVOSBs must be certified through certify.sba.gov.

To qualify for SDVOSB certification, you must meet the following criteria.

Veteran Status: The owner must be a veteran of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force) who was discharged or released under conditions other than dishonorable.

Service-Connected Disability: The veteran owner must have a service-connected disability rating from the VA. Any rating from 0% to 100% qualifies — there is no minimum disability percentage required.

Ownership: The service-disabled veteran must own at least 51% of the business unconditionally and directly.

Control: The service-disabled veteran must control the management and daily business operations. This means they must hold the highest officer position, have the managerial experience to run the business, and devote full-time attention to the business during normal working hours.

Small Business Size: The firm must be small under its primary NAICS code.

Exception for Permanent and Total Disability: If the veteran has a permanent and total service-connected disability rating, the spouse or permanent caregiver may manage the day-to-day operations on the veteran's behalf.

Application Process: Submit your application through certify.sba.gov. Required documents include DD-214 (discharge papers), VA disability rating letter, business ownership documents, tax returns, and financial statements. Processing takes approximately 90 days.

VOSB vs. SDVOSB: If you're a veteran without a service-connected disability, you can apply for Veteran-Owned Small Business (VOSB) certification. VOSB provides access to VA-specific set-asides but not government-wide SDVOSB set-asides.

Contracting Strategy for SDVOSBs:

Target the VA First: The Department of Veterans Affairs uses the "Rule of Two" — if two or more SDVOSBs can perform the work, the VA must set the contract aside for SDVOSB competition. This makes the VA the most accessible agency for new SDVOSBs.

Expand to Other Agencies: Once you have VA past performance, leverage it to pursue SDVOSB set-asides at DoD, GSA, and civilian agencies.

Combine Certifications: SDVOSB can be combined with 8(a), HUBZone, and other certifications. Multiple certifications dramatically increase your eligible contract pool.

Join Veteran Business Networks: Organizations like the National Veteran Small Business Coalition (NVSBC) and American Legion provide networking, training, and advocacy for veteran business owners.