SDVOSB set-asides and VetCert

SDVOSB set-asides and sole-source awards are reserved for small businesses owned and controlled by service-disabled veterans, and they now require SBA certification. If you are a veteran with a service-connected disability rating and you own a small business, the program can give you access to a pool of federal contracts closed to most competitors. The rules changed significantly in 2023, when certification moved from the Department of Veterans Affairs to SBA, so older advice found online is often out of date. This guide explains who qualifies, how SBA's Veteran Small Business Certification (VetCert) program works, what certification gets you, and how to apply.

The goal behind the program

The federal government aims to award at least 5% of all federal contracting dollars to service-disabled veteran-owned small businesses each year, according to SBA's veteran contracting assistance programs page. That goal sits alongside the government's 23% goal for small businesses overall, and agencies are graded on it in SBA's annual procurement scorecard. Set-asides and sole-source awards limited to certified SDVOSBs are among the main ways agencies work toward it.

Eligibility

SBA lists the requirements for VOSB and SDVOSB certification. The owner must be identified by the VA as a veteran, or as a service-disabled veteran for SDVOSB status. The business must be small under the size standard corresponding to any NAICS code listed in its SAM.gov profile. At least 51% of the business must be owned and controlled by one or more veterans, and for SDVOSB certification, by one or more veterans rated as service-disabled by the VA. For veterans who are permanently and totally disabled and unable to manage the daily operations of their business, the business may still qualify if a spouse or appointed permanent caregiver is assisting with management. The full criteria are in Title 13, Part 128 of the Code of Federal Regulations.

As with SBA's other programs, ownership and control are separate tests. Holding 51% of the equity is not enough if someone else actually runs the company. SBA looks at who makes the long-term decisions and who manages day-to-day operations. Consider a hypothetical: a service-disabled veteran owns 60% of a construction firm, but a non-veteran partner signs every contract, controls the bank accounts and can veto major decisions under the operating agreement. That firm would likely have trouble showing the veteran controls it, even though the ownership share is clear.

VetCert: SBA certification

SBA's Veteran Small Business Certification program implements changes from the National Defense Authorization Act for Fiscal Year 2021, which transferred the certification function from the VA to SBA as of January 1, 2023. The final rule was published in the Federal Register on November 29, 2022. Before that date, the VA's Center for Verification and Evaluation verified firms for VA contracts, while SDVOSBs could self-certify for most other agencies. That patchwork is gone: VetCert is now the single certification for both veteran-owned and service-disabled veteran-owned small businesses.

According to SBA, certification allows SDVOSBs to compete for sole-source and set-aside contracts across the federal government. Certified veteran-owned small businesses without a service-disabled rating have additional opportunities at the VA under its Vets First program. SBA also notes that VOSBs and SDVOSBs seeking sole-source and set-aside opportunities with the VA must be certified, with no self-certification provision for those opportunities. The 2024 National Defense Authorization Act extended the certification requirement to subcontracting and goaling purposes, with a self-certification grace period that ended December 22, 2024.

What certification gets you

Certified SDVOSBs can compete for SDVOSB set-asides, which appear on SAM.gov with a label citing FAR Subpart 19.14, and for SDVOSB sole-source awards, where an agency awards directly to an eligible firm. You can browse current SDVOSB set-aside opportunities on SetAside Signal. Under FAR 19.203, there is no order of precedence among the SDVOSB, 8(a), HUBZone and WOSB programs, and above the simplified acquisition threshold contracting officers must consider these programs before a general small business set-aside. Certified firms can also compete in any other program they qualify for, along with total small business set-asides and full and open competitions.

SBA also points to a less-known benefit: certified VOSBs and SDVOSBs may obtain federal surplus personal property through GSA's Federal Surplus Personal Property Donation Program, administered by State Agencies for Surplus Property, subject to conditions on use and ownership.

Obligations after award

Winning a set-aside comes with the limitation on subcontracting in FAR 52.219-14. On a services contract, a certified SDVOSB generally may not pay more than 50% of the amount paid by the government to subcontractors that are not similarly situated, which here means not also certified SDVOSBs that are small for the subcontract's NAICS code. For general construction the limit is 85% and for special trade construction 75%, both excluding the cost of materials. Plan teaming arrangements with these limits in mind.

How to apply

Applications are free and are made through SBA Certifications, where you can check your eligibility, review checklists and pre-application guides, and search for certified VOSBs and SDVOSBs. Before applying, make sure your SAM.gov registration is active and that your NAICS codes and size information are accurate, since size is measured against the codes in your SAM profile. Be prepared to document your veteran status and disability rating, the business's ownership, and how control is exercised, typically through governing documents such as an operating agreement or bylaws.

SBA runs a dedicated call center at 866-SBA-HELP and accepts questions at [email protected]. Veterans Business Outreach Centers, Veterans Business Development Officers at SBA district offices, and APEX Accelerators all offer free help. You can find your SBA district office online.

Is SDVOSB certification worth it?

For eligible owners, certification costs nothing but time and gives access to a protected pool of contracts across every agency, so most find it worthwhile. The practical question is whether agencies buy what you sell through SDVOSB set-asides. Filter our SDVOSB page by industry and state to get a sense of the volume, and read HUBZone, WOSB, SDVOSB and 8(a) set-asides compared if you might qualify for more than one program.

Frequently asked questions

Do I need SBA certification for SDVOSB set-asides?

Yes. SBA's VetCert program certifies SDVOSBs, and certification is what makes a firm eligible for SDVOSB set-aside and sole-source contracts across the government.

Who certifies veteran-owned businesses now?

SBA, through VetCert. The certification function moved from the VA to SBA on January 1, 2023.

What is the SDVOSB contracting goal?

At least 5% of all federal contracting dollars each year.

SetAside Signal is an independent publication, not a government agency, and this isn't legal advice. Rules change, so confirm details at sba.gov, sam.gov and acquisition.gov. Reviewed Oct 19, 2026.