KEY TAKEAWAYS
- Self-certification is gone. As of December 22, 2024, all SDVOSB and VOSB businesses must be certified through the SBA’s VetCert program to count toward federal contracting goals — no exceptions.
- The NDAA FY2024 increased the federal SDVOSB contracting goal from 3% to 5% of all federal prime and subcontract dollars — representing over $31 billion in annual set-aside opportunity.
- SBA VetCert processing times improved dramatically in late 2025 — now averaging just 12 days, down from 60–90 days during most of 2024.
- Veterans receive waived upfront guarantee fees on SBA Express loans up to $500,000 — saving $1,000–$5,000+ per loan — through the SBA Veterans Advantage program.
- The VA’s “Vets First” contracting policy sets aside at least 7% of all VA contracts for certified VOSBs and SDVOSBs — a separate and additional opportunity beyond governmentwide goals.
- The Veteran Business Landscape in 2026
- SBA VetCert: Certification Is Now Mandatory
- SDVOSB vs. VOSB: What’s the Difference?
- How to Get Certified Through VetCert
- Federal Contracting Opportunities
- SBA Loan Programs for Veterans
- Training and Business Development Resources
- Tax Benefits for Veteran-Owned Businesses
- State and Local Programs
- Common VetCert Application Mistakes to Avoid
- Frequently Asked Questions
The military develops some of the most capable leaders, logisticians, and problem-solvers in the world. It’s no surprise that veterans start businesses at significantly higher rates than the general population — the SBA estimates veterans are 45% more likely to become entrepreneurs than non-veterans. What’s more surprising is how few veteran entrepreneurs fully understand the programs built specifically for them.
The landscape changed significantly between 2023 and 2024. The SBA took over veteran business certification from the VA. Self-certification was eliminated for federal contracts. The federal contracting goal for service-disabled veteran businesses jumped from 3% to 5%. If your knowledge of veteran business benefits is more than a year or two old, this guide has what you need.
The Veteran Business Landscape in 2026
There are approximately 1.9–2.5 million veteran-owned businesses in the United States, representing roughly 9–10% of all U.S. firms. Collectively these businesses employ millions of workers and generate hundreds of billions in revenue. The industries with the highest concentration of veteran-owned businesses include construction, professional services, healthcare, retail, and federal contracting.
TRENDING: See Today’s VA Loan Rates
Veteran-owned businesses also demonstrate higher survival rates than average small businesses, a pattern SBA researchers attribute to the discipline, leadership, and operational competence that military service instills. These characteristics aren’t just good for business — they’re a differentiator when competing for government contracts where past performance and reliable delivery matter.
The most significant development in recent years is the shift in how veteran business status is verified for federal contracting. What used to be largely self-reported is now formally certified — and that change has opened both opportunities and compliance requirements that every veteran entrepreneur needs to understand.
SBA VetCert: Certification Is Now Mandatory
The single most important update for veteran-owned businesses in the past two years: self-certification for SDVOSB and VOSB status is gone.
Here’s the timeline of what happened:
- January 1, 2023: The SBA formally took over veteran business certification from the VA’s Center for Verification and Evaluation (CVE). The SBA’s Veteran Small Business Certification program — known as VetCert — became the single point of certification.
- August 5, 2024: An SBA direct final rule eliminated the ability to self-certify SDVOSB status for federal contracts and subcontracts. Businesses could no longer declare themselves SDVOSBs without going through VetCert.
- December 22, 2024: The deadline passed. Any SDVOSB business that had not submitted a VetCert application by this date lost the ability to self-certify and count toward agency SDVOSB goals.
- Today: Formal VetCert certification through the SBA is mandatory for any business that wants to be counted toward federal SDVOSB or VOSB contracting goals, compete for set-aside contracts, or receive sole-source awards.
If you have been operating as a self-certified SDVOSB and have not completed VetCert certification, you need to do this now. Until you are certified, you cannot compete for set-aside contracts or count toward your buyers’ small business goals.
The good news: processing times have improved dramatically. After struggling with backlogs of 60–90 days through much of 2024 and early 2025, the SBA announced in November 2025 that the backlog was cleared and staffing restored. Average processing time is now approximately 12 days.
SDVOSB vs. VOSB: What’s the Difference?
Both programs require at least 51% ownership and day-to-day control by an eligible veteran. The distinction is in who the owner is and what contracting opportunities open up:
| Feature | VOSB | SDVOSB |
|---|---|---|
| Owner requirement | Any veteran (honorable discharge) | Service-disabled veteran with VA rating |
| Ownership threshold | 51%+ by veteran(s) | 51%+ by service-disabled veteran(s) |
| Governmentwide contracting goal | No specific governmentwide goal | 5% of all federal prime/subcontracts |
| VA Vets First set-asides | ✅ Yes (7% of VA contracts) | ✅ Yes (VA prioritizes SDVOSBs first) |
| Federal sole-source contracts | VA only | All federal agencies |
| Certification cost | Free (SBA VetCert) | Free (SBA VetCert) |
| Certification valid | 3 years (then recertify) | 3 years (then recertify) |
If you have a service-connected disability, pursue SDVOSB — it unlocks broader federal contracting access including the governmentwide 5% goal. If you’re a veteran without a service-connected disability, VOSB certification still gives you significant advantages at the VA, where the Vets First program mandates that contracts go to VOSBs and SDVOSBs whenever two or more certified firms can compete at a fair price.
How to Get Certified Through VetCert
Certification is free and handled entirely through the SBA. Here’s what you need to prepare:
Eligibility Requirements
- 51% veteran/service-disabled veteran ownership: Unconditional ownership — meaning the veteran’s ownership cannot be subject to conditions that would transfer it to a non-veteran
- Control: The qualifying veteran must hold the highest officer position (typically President or CEO), control day-to-day operations, and receive the highest compensation in the business (or document a legitimate business reason for lower compensation)
- Small business size: The business must qualify as “small” under at least one NAICS code listed in its SAM.gov profile
- SAM.gov registration: Active registration in the System for Award Management is required
- No federal exclusions: The business and its owners must not have active exclusions, unresolved tax liens, or federal debt delinquencies
The Application Process
- Register or update your SAM.gov profile. Ensure your NAICS codes accurately reflect your business activities.
- Create an account at veterans.certify.sba.gov — the official VetCert portal. The SBA’s system imports information from VA records and SAM.gov automatically.
- Upload supporting documents. Typically: DD-214, VA service-connected disability rating letter (for SDVOSB), business formation documents, operating agreement, financial statements, and documentation of ownership and control.
- Submit and monitor. Average processing is currently approximately 12 days. You can track status in the portal.
The most common reasons for denial are documentation of control — specifically, failure to clearly show that the veteran holds the highest officer position, controls day-to-day operations, and that no non-veteran has effective control through board arrangements, employment contracts, or other mechanisms. Review your operating agreement and corporate documents carefully before applying.
Federal Contracting Opportunities
Federal contracting is the flagship benefit of SDVOSB/VOSB certification — and the scale of the opportunity is substantial.
The 5% Federal Spending Goal (SDVOSB)
The NDAA for FY2024 raised the federal contracting goal for SDVOSBs from 3% to 5% of all prime and subcontract dollars. At the federal government’s contracting scale, 5% represents over $31 billion annually. Federal agencies that fail to meet this goal must submit corrective action reports to the SBA — creating institutional accountability and genuine pressure to seek out certified SDVOSB contractors, particularly in agencies that have historically underperformed.
VA Vets First Program
The VA operates under a separate and more aggressive contracting mandate than the rest of the federal government. The VA’s Vets First Verification Program requires contracting officers to give first priority to certified SDVOSBs, second priority to certified VOSBs, before considering any other contract vehicle. At least 7% of all VA contracts are set aside exclusively for certified VOSBs and SDVOSBs. Given the VA’s size as a federal buyer, this represents a significant and targeted opportunity for veteran businesses in healthcare, construction, IT, facilities management, and professional services.
Set-Aside Contract Mechanics
Set-aside contracts are restricted competitions where only businesses with the relevant certification can bid. Sole-source awards allow a contracting officer to award directly to a certified SDVOSB without competition, under certain conditions (generally for contracts under $4 million, or $7 million for manufacturing). All federal purchases between $10,000 and $250,000 are automatically set aside for small businesses — VetCert certification stacks on top of this baseline small business preference.
Finding Contract Opportunities
Federal contract opportunities are posted at SAM.gov. Filter by set-aside type (SDVOSB or VOSB) and your NAICS code. The SBA also offers the SUB-Net database for subcontracting opportunities under prime contracts.
SBA Loan Programs for Veterans
One critical clarification upfront: the VA does not make small business loans. Business financing for veterans runs through the Small Business Administration. Any reference to “VA business loans” is actually describing SBA programs with veteran-specific benefits.
SBA Express Loan — Veterans Advantage
The most accessible SBA product for veteran entrepreneurs. Key features:
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- Loan amounts up to $500,000
- 36-hour SBA response time (much faster than standard 7(a))
- Available as a term loan or revolving line of credit
- Upfront guarantee fees waived for veterans — saving 2%–3.75% of the loan amount ($1,000–$5,000+ on a typical loan)
- Eligible borrowers: veterans, service-disabled veterans, active duty service members in TAP, Reservists, National Guard members, spouses of veterans or active duty members, and surviving spouses
- Typical requirements: 650+ credit score, 2+ years in business, strong revenue
SBA 7(a) Loan — Veterans Advantage
The SBA’s primary lending program for established businesses:
- Loan amounts up to $5 million
- Full upfront guarantee fee waiver on loans under $150,000; reduced fees on larger amounts under the Veterans Advantage program
- Use cases: working capital, equipment, real estate, business acquisition
- Terms up to 10 years (25 years for real estate)
- Rates variable, tied to prime rate plus lender margin
- Requires solid financials, business plan, and 680+ credit score for most lenders
SBA Microloan
For early-stage businesses that don’t yet have the revenue or history for a 7(a) loan:
- Up to $50,000 through SBA-approved nonprofit intermediaries
- More flexible requirements than bank-based SBA products
- Often paired with technical assistance and business training
- Average loan around $13,000 — best for startup costs, equipment, inventory
Military Reservist Economic Injury Disaster Loan (MREIDL)
A specialized program for businesses impacted when a key employee or owner is called to active duty:
- Up to $2 million at a fixed 4% interest rate
- Terms up to 30 years
- Covers ongoing business expenses that can’t be met while the essential employee is deployed
- Applied directly through the SBA (not through a bank)
Second Service Foundation
Formerly the StreetShares Foundation, Second Service Foundation is a nonprofit focused specifically on veteran entrepreneurs. It offers the Military Entrepreneur Challenge grant competition, networking, coaching, and in some cases direct financing ($5,000–$250,000) with more flexible eligibility than SBA products for early-stage businesses.
TRENDING: See Today’s VA Loan Rates
Training and Business Development Resources
Boots to Business (B2B)
An SBA entrepreneurship education program delivered through the Department of Defense’s Transition Assistance Program (TAP). Available to transitioning service members, veterans of all eras, and military spouses. The core program is a two-day in-person course on military installations; follow-on options include Boots to Business Reboot (available to veterans in their communities regardless of time since separation) and B2B Revenue Readiness (an eight-week online course for deeper business plan development). All are free.
Veteran Business Outreach Centers (VBOCs)
The SBA funds approximately 28 VBOCs covering every state and territory. Services are free and include business plan development, financial projections, loan application assistance, SDVOSB certification guidance, and connections to SBA resources. Find your nearest VBOC at SBA.gov/OVBD. VBOCs are consistently the best single starting point for veteran entrepreneurs — call before you apply for any loan or certification.
Veteran Federal Procurement Training
The SBA’s Veteran Institute for Procurement (VIP) offers federal procurement training specifically for businesses involved in or seeking government contracts. Free for certified veteran businesses and focused on the practical skills of bidding, proposal writing, and managing federal contract performance.
Small Business Development Centers (SBDCs)
SBA-funded SBDCs provide free business consulting and low-cost training to small businesses nationwide. While not veteran-specific, SBDCs are extensively networked with VBOC advisors and provide complementary services including market research, financial analysis, and export assistance.
Women Veteran Programs
The SBA’s Women’s Business Centers and the V-WISE (Veteran Women Igniting the Spirit of Entrepreneurship) program through Syracuse University’s IVMF provide business training specifically for women veterans and military spouses. Bunker Labs, a nonprofit veteran entrepreneurship network, also offers programs and community for both male and female veteran entrepreneurs.
Tax Benefits for Veteran-Owned Businesses
Several federal tax provisions benefit veteran business owners, though the specific impact depends on your business structure and individual circumstances. Consult a tax professional for guidance on your situation.
TRENDING: See Today’s VA Loan Rates
Work Opportunity Tax Credit (WOTC)
Businesses that hire veterans — including your own business hiring additional veteran employees — may qualify for the Work Opportunity Tax Credit. The credit ranges from $2,400 to $9,600 per qualified veteran hired, depending on the veteran’s circumstances (unemployment duration, disability status, and receipt of public assistance). The credit is claimed on your business tax return. More details are available at DOL.gov/WOTC.
Section 179 Deduction and Bonus Depreciation
Veteran-owned businesses benefit from the same equipment expensing provisions available to all small businesses. Section 179 allows immediate expensing of qualifying equipment and software rather than depreciating over years. Bonus depreciation (currently being phased down from 100%) provides additional first-year write-off for qualifying assets. These provisions are particularly relevant for veteran businesses in construction, manufacturing, and logistics with significant equipment needs.
Disabled Access Credit
Small businesses that incur expenses to make their operations accessible to persons with disabilities may claim a credit of 50% of eligible expenditures between $250 and $10,250 per year (maximum $5,000 credit). For service-disabled veteran entrepreneurs managing accommodations within their own businesses, this can offset some accessibility-related expenses.
State Tax Benefits
Many states offer additional tax exemptions or credits for veteran-owned businesses. These vary significantly by state — check with your state’s veterans affairs agency or department of revenue for current provisions. Some states also offer property tax exemptions for business property owned by veterans with qualifying disability ratings.
State and Local Programs
Beyond federal programs, 14 states have established contracting set-aside programs that mirror the federal SDVOSB/VOSB model at the state level: Arkansas, California, Florida, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, New York, Oregon, Virginia, Washington, and Wisconsin. State certifications run separately from SBA VetCert and typically require a separate application — but they can build past performance and revenue while you’re growing toward federal contracting.
State veterans affairs agencies and economic development offices often maintain additional programs including below-market lending, small grants, technical assistance, and veteran entrepreneur networks. Contact your state’s veterans affairs office directly — these programs vary significantly and are not always well-publicized.
Common VetCert Application Mistakes to Avoid
The VetCert rejection rate has been significant, particularly in the program’s early years. Most denials come down to documentation rather than ineligibility. The most common issues:
- Control documentation is unclear. Your operating agreement, bylaws, or articles of organization must clearly establish that the veteran holds the highest officer position, controls day-to-day operations, and makes long-term strategic decisions. Vague language or officer structures that could allow non-veterans to override the veteran owner are common failure points.
- Highest compensation exception not documented. If the veteran owner doesn’t receive the highest compensation, the SBA requires a clear written explanation showing this was a conscious business decision made by the veteran for the company’s benefit — not evidence that someone else is actually running the business.
- Non-veteran has de facto control. Even with 51% ownership on paper, if a non-veteran day-to-day manager oversees operations while the veteran is uninvolved, the application will be denied. The veteran must be actively managing.
- SAM.gov profile doesn’t include relevant NAICS codes. You only need to qualify as small in one NAICS code — but that code must be in your SAM profile.
- Missing or expired documents. DD-214, VA disability letter (for SDVOSB), and formation documents all need to be current and complete.
If your application was declined, you can reapply after 90 days with corrected documentation, or appeal to the SBA’s Office of Hearings and Appeals (OHA) within the appeal timeframe specified in your denial notice. Working with a VBOC advisor or a federal contracting attorney before applying significantly reduces the risk of denial.
Frequently Asked Questions
No. The VA does not make small business loans. Business financing for veterans runs through the Small Business Administration (SBA) via the Veterans Advantage program, which provides reduced or waived fees on SBA 7(a) and Express loans. Any reference to “VA business loans” describes SBA products with veteran-specific benefits, not VA-direct financing. The VA’s business-related role is limited to the Boots to Business entrepreneurship training program and federal contracting opportunities through the Vets First program.
Self-certification — where a business owner declared their own SDVOSB or VOSB status without third-party verification — was eliminated effective December 22, 2024 for SDVOSB businesses. VetCert is the SBA’s formal verification program that reviews ownership and control documentation before granting certified status. Certified businesses are listed in the SBA’s VetCert database, which contracting officers use to verify eligibility. Self-certified businesses no longer count toward agency contracting goals.
Yes. An SDVOSB that meets the requirements for the SBA’s 8(a) Business Development Program can hold both certifications simultaneously. The 8(a) program provides additional contracting opportunities, access to sole-source awards, and business development support over a 9-year program term. The two certifications serve different purposes and stack rather than conflict. Note that 8(a) has its own eligibility and application requirements separate from VetCert.
VetCert certification is valid for three years. You can recertify within 90 calendar days prior to your expiration date. The SBA will notify you as your expiration approaches. You must notify the SBA within 30 days of any material changes that could affect your eligibility — such as ownership changes, new investors, or changes to officer structure.
Only if the spouse is also a qualifying veteran or service-disabled veteran who meets the ownership and control requirements themselves. The certification is tied to the individual veteran’s status — it does not transfer to a spouse simply by marriage. However, military spouses do have access to several SBA programs including Boots to Business and Women’s Business Center resources. Some SBA loan programs with veteran benefits do extend eligibility to spouses of active duty members and veterans.
Additional Resources:
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Department of Defense, VA, SBA, or any government agency. For official VetCert certification, visit veterans.certify.sba.gov. For SBA loan programs, visit SBA.gov.
