SDVOSB and VOSB Certification Explained

Two designations open federal contracting doors:

  • VOSB — Veteran-Owned Small Business
  • SDVOSB — Service-Disabled Veteran-Owned Small Business

Certified SDVOSBs compete for sole-source and set-aside federal contracts, and the federal government aims to award at least 5% of all federal contracting dollars to them every year. That target is the whole commercial case for certifying.

The administration moved. The FY2021 National Defense Authorization Act transferred the certification function from the Department of Veterans Affairs to the Small Business Administration, effective January 1, 2023. The final rule was published November 29, 2022. It now runs through SBA VetCert at certifications.sba.gov.

Then the FY2024 NDAA tightened it further: for subcontracting and goaling purposes, every veteran-owned firm had to be certified through SBA VetCert by December 22, 2024. Self-certification is no longer enough for those purposes.

If you were VA-verified under the old CVE system, or have been self-certifying for years, that is the change to check against — the old routes do not carry.

Who is eligible?

For VOSB: at least 51% of the business owned and controlled by one or more veterans.

For SDVOSB: at least 51% owned and controlled by one or more veterans rated as service-disabled by VA.

In both cases the firm must be identified by VA as veteran or service-disabled-veteran owned, and must meet the applicable small business size standard for its industry.

"Owned and controlled" is where applications fail. Control means the qualifying veteran runs the business — day-to-day management and long-term decision-making — not that they hold shares while someone else operates it. Ownership structures set up for other reasons, and operating agreements that give a non-veteran partner veto rights, are the usual problem.

Two practical points. Certification takes time and documentation — organizing documents, financials, the operating agreement — so start before you need it for a bid, not after. And SBA publishes an eligibility checker and a document checklist, which is the cheapest way to find out whether your structure works before you invest in the application.

How do I apply?

  • Apply at certifications.sba.gov: SBA VetCert, not VA, has run this since 1 January 2023.
  • Run SBA's eligibility checker first: It surfaces structural problems before you commit to the application.
  • Check the 51% is ownership and control: A veteran shareholder who does not run the business will not pass.
  • Have the operating agreement ready: Veto rights held by a non-veteran partner are a common failure point.
  • Do not rely on old VA CVE verification or self-certification: Since 22 December 2024, subcontracting and goaling require SBA certification.
  • Certify before you bid, not during: The documentation stage takes real time.

Common questions

Who certifies SDVOSB status now, VA or SBA?

SBA, through the VetCert program at certifications.sba.gov. The FY2021 NDAA transferred certification from VA to SBA effective 1 January 2023.

What percentage of federal contracts is set aside for service-disabled veterans?

The federal government aims to award at least 5% of all federal contracting dollars to SDVOSBs each year.

What are the ownership requirements for SDVOSB certification?

At least 51% owned and controlled by one or more veterans rated as service-disabled by VA, and the firm must meet its industry's small business size standard.

Can you still self-certify as a veteran-owned small business?

Not for subcontracting or goaling purposes. Since 22 December 2024 those require certification through SBA VetCert.

What is the difference between VOSB and SDVOSB?

VOSB requires 51% veteran ownership and control. SDVOSB requires the same, but the qualifying veteran must be rated service-disabled by VA — and SDVOSB is the designation attached to the 5% federal contracting goal.

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