The federal government has some of the most substantial preferences for veteran-owned businesses of any buyer, public or private. Two programs are specifically designed for veterans, and the VA has mandatory set-aside requirements that funnel significant dollars exclusively to verified veteran-owned firms.
VOSB vs SDVOSB: The Two Programs
VOSB (Veteran-Owned Small Business) requires that a veteran — honorably discharged or currently serving — owns and controls at least 51% of the business.
SDVOSB (Service-Disabled Veteran-Owned Small Business) requires the same ownership and control, but the veteran must have a service-connected disability rating from the VA or DoD.
The distinction matters because SDVOSB carries stronger benefits:
- SDVOSB contracts are set aside across all federal agencies, not just VA.
- The VA has mandatory SDVOSB set-asides under the Veterans First Contracting Program.
- SBA's SDVOSB program gives you set-aside access and eligibility for sole-source awards up to $4.5 million (services) or $7 million (manufacturing) for civilian agencies.
Two Certification Systems (This Is Confusing But Important)
As of January 2023, SBA manages certification for both VOSB and SDVOSB programs through a single platform at veterans.certify.sba.gov. This replaced the VA's legacy CVE (Center for Verification and Eligibility) process.
For VA contracts under Veterans First, you must be certified through SBA's system. The VA will not accept self-certification for VA set-aside contracts — you must be in SBA's database.
For non-VA federal contracts, SBA certification is also required for set-aside eligibility. Prior to 2023, contractors could self-certify for non-VA SDVOSB set-asides — that changed when the National Defense Authorization Act aligned both systems under SBA.
Where the Money Is
The VA is the single largest buyer in the veteran-owned set-aside market. The VA spent over $22 billion on contracts in FY2025, and the Veterans First Contracting Program requires contracting officers to set aside work for VOSBs and SDVOSBs before opening to broader competition.
Beyond VA, DoD awards significant dollars to SDVOSBs across Army, Navy, Air Force, and DLA supply chains. Many DoD solicitations include SDVOSB as a set-aside or evaluation preference.
How to Get Certified
The SBA certification process requires:
1. SAM.gov active registration — You need this first.
2. Business documentation — Articles of organization/incorporation, operating agreement or bylaws, EIN confirmation.
3. Proof of veteran status — DD-214 (Member Copy 4) for VOSBs. For SDVOSB, you also need your VA disability rating letter.
4. Proof of ownership — Documentation showing the veteran owns at least 51% of the business.
5. Proof of control — Showing the veteran controls day-to-day management and long-term decision-making (typically through operating agreement language or board control documentation).
The SBA reviews your application and may request additional documentation. Processing times vary but typically run 30–90 days.
Common Certification Pitfalls
Ownership on paper is not enough. The SBA looks at operational control — who actually runs the company day to day. If a non-veteran manager makes all the decisions, the certification will be denied even if the veteran owns 51%.
Also watch out for unconditional ownership requirements. Operating agreements that give other owners veto rights over major decisions, or that require unanimous consent, can jeopardize the control finding.
Starting Out
If you are a veteran just entering government contracting, the clearest path is: get SAM.gov registered, file for SDVOSB certification if eligible, and start with subcontracting to build past performance. The VA has a mentorship program (the Boots to Business initiative) and SBA offers resources through the Veteran Business Outreach Centers (VBOCs) — there are over 20 VBOCs across the country.