Last updated: September 2026
I started Drakov Industries through the VR&E Self-Employment track, so I know how much paperwork goes into getting a veteran-owned business off the ground. Federal certification can be worth that effort, but only if you understand what it actually gets you. I've helped countless veterans navigate this process, and trust me, the benefits far outweigh the initial effort required.
Before anything else, here's the most important update to this post: VetBiz and the VA's Center for Verification and Evaluation no longer certify veteran-owned businesses. Since January 1, 2023, the Small Business Administration has handled all certifications through its Veteran Small Business Certification program, called VetCert. If you've been following older guides that send you to VetBiz.gov, start over here.
VOSB vs. SDVOSB: know which one you need
There are two certifications, and they are not equal.
A Veteran-Owned Small Business (VOSB) is at least 51% owned and controlled by one or more veterans. A Service-Disabled Veteran-Owned Small Business (SDVOSB) is at least 51% owned and controlled by one or more veterans that VA has rated as having a service-connected disability. Any service-connected rating counts, including 0%.
The difference in what each one gets you is big:
| VOSB | SDVOSB | |
|---|---|---|
| Who qualifies | Veteran(s) own and control 51%+ | Service-disabled veteran(s) own and control 51%+ |
| Set-asides and sole-source awards | Mainly at the VA (Veterans First program) | Across the whole federal government, plus the VA |
| Federal contracting goal | No government-wide goal | At least 5% of federal contracting dollars |
| Where to apply | SBA VetCert (free) | SBA VetCert (free) |
| How long it lasts | 3 years | 3 years |
Source: SBA Veteran Small Business Certification program (sba.gov/veterans)
The old version of this post said roughly "$15 billion" is set aside each year for veteran-owned businesses. I couldn't find a source for that figure, so I've removed it. What SBA does say is that the federal government aims to award at least 5% of all federal contracting dollars to SDVOSBs each year. Congress raised that goal from 3% in the 2024 National Defense Authorization Act.
The practical takeaway: outside of the VA, a VOSB certification alone opens very few doors. If you have a service-connected disability rating, even at 0%, apply for SDVOSB. If you think you may have a service-connected condition but haven't filed a claim, it may be worth doing. My post on how long a VA claim takes can help you plan.
Who qualifies
To be certified, your business has to meet four main requirements:
VA has to identify you as a veteran (or as a service-disabled veteran for SDVOSB). VetCert checks your status against VA's records. That means your name, date of birth, and home address in the application need to match your VA.gov profile exactly. Mismatches are one of the most common reasons applications stall.
Your business has to be small under SBA's size standard for at least one NAICS code in your SAM.gov profile. Size standards are based on either average annual revenue or number of employees, and they vary widely by industry. The old post listed specific ranges, but those change over time. Look up your codes on SBA's size standards page instead.
Veterans have to own at least 51% directly and unconditionally. Watch for buy-sell clauses, stock options, or partner veto rights that could make ownership "conditional."
Veterans have to control the business, both day-to-day operations and long-term decisions. You can't be a silent owner. If a non-veteran is paid more than you, expect SBA to ask for a written explanation.
There are two exceptions worth knowing. If a veteran is permanently and totally disabled and can't manage daily operations, the business may still qualify for SDVOSB if the veteran's spouse or appointed permanent caregiver helps manage it. And a surviving spouse who takes over ownership and control after the veteran's death may continue to qualify.
The old post said veteran owners must be U.S. citizens living in the United States. I couldn't confirm that as a VetCert requirement, so I've taken it out. The full rules are in 13 CFR Part 128.
What you'll need to apply
Start by registering your business in SAM.gov. Registration is free. Have your Unique Entity ID (UEI) and your business bank account number handy.
The documents SBA asks for depend on your business type. According to SBA's VetCert preparation fact sheet, an LLC should expect to provide its articles of organization and all amendments, its state formation certificate, its operating agreement and all amendments, and signed, dated minutes showing how the business actually runs. Corporations need similar documents plus bylaws, shareholder agreements, and a current stock ledger. Sole proprietors need proof the business exists, such as an IRS EIN letter or a trade name certificate.
You may also need extra documents depending on your answers. These include a written explanation if the veteran isn't the highest-paid person, franchise agreements, an explanation of any past-due taxes or liens, or a VA letter confirming permanent and total disability if a caregiver is involved. If you or someone in your household is a federal employee at GS-13 or above, you'll need a letter of non-objection from that agency's ethics official.
The old post said you'll need three years of business tax returns and a résumé for every application. SBA's current checklist focuses on ownership and control documents. Reviewers can still ask for financial records, so keep them organized, but don't delay your application to assemble paperwork you may not need.
The biggest thing I'd tell you: clean up your governing documents before you apply. Most denials I hear about come down to operating agreements or bylaws that give a non-veteran partner too much say, such as veto power over routine decisions or supermajority voting that the veteran can't meet alone. It's much easier to amend those documents first than to fight a denial later.
How to apply, step by step
Here's the process:
Register in SAM.gov and make sure your NAICS codes are accurate.
Check that your VA.gov profile (name, date of birth, home and mailing address) matches what you'll enter in the application.
Gather your documents using SBA's fact sheet for your business type.
Create an account in MySBA Certifications, claim your business, and complete the VetCert application.
Respond quickly to any requests for more information from your SBA reviewer.
Processing times have varied a lot. SBA reported that average processing time rose to 81 days by the end of 2024. In November 2025, SBA announced it had cleared a backlog of more than 2,700 applications, with average processing down to about 12 days. A complete application will always move fastest.
VetCert is free. If a company offers to "handle your VetCert" or your SAM.gov registration for a fee, you don't need it. SAM.gov and SBA don't charge for either one. Free help is available from APEX Accelerators and SBA's Veterans Business Outreach Centers.
If you're denied, SBA's rules let you apply again after 90 days once you've fixed the problems. You can also appeal some decisions to SBA's Office of Hearings and Appeals. Read the denial letter carefully. It will tell you exactly what SBA found.
What certification actually gets you
Sole-source awards. A contracting officer can award a contract directly to an SDVOSB without competition in some cases. That's allowed when the contracting officer doesn't expect offers from two or more SDVOSBs, the price is fair, and the contract (including options) doesn't exceed $5 million, or $8.5 million for manufacturing. The old post said $4 million, but those limits were raised. At the VA, the Veterans First program has its own rules, and the VA's sole-source limit is $5 million.
Set-asides. When a contracting officer expects at least two qualified SDVOSBs to bid at a fair price, the contract can be set aside for SDVOSBs only. At the VA, contracting officers look to SDVOSBs first, then VOSBs, before other small businesses. That's why the VA is the one place where a VOSB-only certification carries real weight.
Subcontracting. Large prime contractors have goals for subcontracting to veteran-owned firms. Since December 22, 2024, they only get credit toward those goals when they work with SBA-certified firms. Self-certification no longer counts.
Credibility. Being listed in SBA's search tools lets contracting officers and prime contractors find you. But certification alone doesn't win contracts. You still need past performance, a competitive price, and relationships with buyers. My post on government contracting for veterans covers how to find and pursue opportunities.
The old version of this post suggested VOSB certification brings "unprecedented growth." For most businesses, the honest answer is that certification removes some of your competition. It doesn't replace the work of marketing and delivering.
Keeping your certification
The old post described annual renewals through VetBiz and a separate three-year recertification. Under VetCert, the rules are simpler:
Your certification lasts three years. You can recertify within 90 days before it expires. If you miss that window, SBA gives you 30 days after expiration to recertify and be reinstated. After that, you'd have to start over. In May 2025, SBA also gave existing VOSB and SDVOSB firms a one-time six-month extension, so double-check your current end date in MySBA Certifications.
You must report changes that could affect your eligibility within 30 days. That includes new owners, changes in ownership percentages, or changes in who controls the business. And you have to cooperate if SBA opens a program examination.
Put your recertification window on your calendar the day you're approved, and keep your minutes, agreements, and ownership records current as you go. That turns recertification into an update instead of a scramble.
Other resources for veteran business owners
If you're still building your business, look at SBA loans before you worry about contracting. SBA Express loans to veteran-owned businesses carried a $0 upfront guaranty fee in fiscal year 2026, which ends September 30, 2026. Check whether that continues into FY2027. My post on SBA loans for veterans has details.
If you have a service-connected disability, the VR&E Self-Employment track may help fund your start-up. It's how I started Drakov.
Some states have their own veteran-owned business certifications and set-aside programs, separate from federal VetCert. They can help you build past performance with state and local agencies. Check with your state veterans agency or procurement office.
Conclusion
Securing your VOSB certification is about positioning your veteran-owned business for long-term success in the federal marketplace. The process requires dedication and attention to detail, but the rewards are substantial. From accessing billions in set-aside contracts to gaining competitive advantages that can accelerate your business growth, VOSB certification opens doors that simply aren't available to non-certified businesses. Whether you're deciding between VOSB and SDVOSB, cleaning up your operating agreement, or figuring out if federal contracting even fits your business, I can help you make a plan.
Thinking about starting or growing your business? The same discipline that served you in uniform can build something of your own. Schedule a free consultation to talk through your plans.