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

Certification is handled by the SBA (through its veteran small business certification process). You apply, document ownership and control plus the service-connected disability, and once approved you can compete for SDVOSB set-asides as a certified firm. Certification is required before you can win an SDVOSB set-aside — don’t wait until an opportunity is live to start.

There is also a related Veteran-Owned Small Business (VOSB) status for veteran owners without a service-connected disability, which matters especially for VA contracting.

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.