The Service-Disabled Veteran-Owned Small Business (SDVOSB) program reserves a slice of federal contracting for firms owned and run by service-disabled veterans. For those who qualify, it’s one of the more valuable set-aside statuses — available government-wide, with both set-aside and sole-source access.

Here’s how it works.

Who qualifies

To be an SDVOSB, a firm generally must be:

  • At least 51% owned by one or more service-disabled veterans (disability established through the VA).
  • Controlled and managed day-to-day by one or more of those service-disabled veteran owners — the highest officer position must be held by a qualifying veteran.
  • A small business under the NAICS code that applies to the work. See our NAICS code guide.

For a veteran with a permanent and severe disability, a spouse or permanent caregiver may be allowed to manage the firm — one of several nuances worth confirming against the current rules.

Certification: the move to SBA VetCert

This is the part that trips firms up, because it changed. Certification for both SDVOSB and VOSB is now run by the SBA under the Veteran Small Business Certification (VetCert) program — it moved from the VA to the SBA effective January 1, 2023, and it applies government-wide, not just to VA contracts.

The bigger change: self-certification has been phased out. For years, a firm could self-certify as an SDVOSB to compete for set-asides outside the VA. That door is closed — you must now hold an active VetCert certification to win an SDVOSB set-aside or sole-source award anywhere in the federal government.

To get certified, you apply through VetCert and document ownership and control plus the service-connected disability. Certification takes time, so start well before an opportunity is live — don’t wait until a solicitation drops.

There is also the related Veteran-Owned Small Business (VOSB) status for veteran owners without a service-connected disability, certified through the same VetCert program.

The advantages

  • Set-aside competition restricted to SDVOSBs — a much smaller field.
  • Sole-source awards up to applicable thresholds, where a contracting officer can award directly.
  • VA emphasis. The Department of Veterans Affairs places particular priority on veteran-owned firms, so SDVOSB status is especially powerful for VA work.

Staying compliant

  • Maintain ownership and control. Changes to the cap table or to who runs the company can affect eligibility.
  • Honor the limitations on subcontracting. Like every set-aside, an SDVOSB award requires you to self-perform a minimum share of the work — see FAR 52.219-14.
  • Recertify as required and keep your SAM.gov registration active.

Where it fits

SDVOSB is one of four socioeconomic set-aside programs — alongside 8(a), WOSB/EDWOSB, and HUBZone. If you qualify for more than one, you can hold them together and pursue a wider set of opportunities. See the full set-aside overview.

The bottom line

If you’re a service-disabled veteran business owner, SDVOSB certification opens a protected lane of federal demand — strongest at the VA, but available across government. Get certified before you need it, keep ownership and control clean, and build your pursuit strategy around the set-asides only your firm can compete for.

This article is general information, not legal advice. Eligibility rules and the certification process change; verify the current requirements with the SBA before acting.