VetCert: How to Get Your Business Certified as VOSB or SDVOSB

This page is for veterans who own or are starting a small business and want it certified as veteran-owned. It is not about a VA disability claim.

VetCert is how the Small Business Administration (SBA) certifies veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB). A business needs it to compete for contracts set aside for them. Applying is free. SBA says APEX Accelerators can help you see whether you are eligible for small business certifications, and APEX says its guidance is no-cost.

What VetCert is

SBA has run the program since January 1, 2023. A defense law for fiscal year 2021 moved it from the VA, whose Center for Verification and Evaluation had verified businesses. The VA no longer certifies or verifies businesses.

Certification is required to win a VOSB or SDVOSB set-aside or sole source contract. A set-aside is open only to those businesses. A sole source contract is negotiated with just one business. Certification is also required for a contract to count toward the government's SDVOSB goals.

Who qualifies

The business must be small under SBA's size standard for any industry code in its SAM.gov profile. These are North American Industry Classification System (NAICS) codes. SAM.gov is the government's System for Award Management.

At least 51 percent must be owned and controlled by one or more veterans who live in the United States. For an SDVOSB, they must be service-disabled veterans.

A veteran served in the active military, naval, air, or space service and was discharged or released under conditions other than dishonorable. A Reservist or Guard member also counts if called to federal active duty. So does one disabled by a disease or injury incurred or made worse in line of duty or in training.

SBA's FAQ says Guard or Reserve duty of one weekend a month and two weeks a year does not count. Neither does active duty for training, such as basic training. Receiving VA service-connected disability compensation does count.

Owning and running it

Veterans must own at least 51 percent directly and with no conditions attached, not through another company or trust. A revocable living trust can count if veterans are its grantors, trustees and current beneficiaries.

The 51 percent applies to all stock and to each class of voting stock, LLC member interest and partnership interest. A qualifying veteran must also hold the highest officer position, usually President or Chief Executive Officer. That veteran needs the management experience to run the business.

Status comes from the VA

Only the VA can establish veteran or service-disabled status. SBA and its appeals office cannot decide it, and the regulation names no minimum rating. To correct your VA record, SBA's FAQ says the best way is an appointment with a VA public contact representative.

For questions it gives 1-866-584-2344, the help desk of the VA's Office of Small and Disadvantaged Business Utilization. The office lists its hours as Monday through Friday, 8 a.m. to 4 p.m. Eastern.

SBA's VetCert page says the veterans behind an SDVOSB must be rated as service-disabled by the VA. A veteran not listed as service-disabled can still apply as a VOSB.

Who cannot qualify

• A nonprofit.
• A business or owner with an active exclusion in SAM.gov, such as a suspension or debarment.
• A business or principal that has not paid significant federal debts, such as unresolved tax liens or defaulted federal loans. It may still qualify if it is current on an approved repayment plan, or the debt was settled and forgiven.

For an SDVOSB, a veteran rated permanently and totally disabled may be unable to manage daily operations. The business can still qualify if the veteran's spouse or permanent caregiver, living in the United States, steps into the veteran's place. SBA's summary says assisting. The regulation makes that person the qualifying veteran, who must control management and daily operations and hold the top officer job.

A permanent caregiver needs a formal written appointment, backed by the VA's written finding of a permanent and total service-connected disability. The appointment must say why the caregiver was chosen and how it helps manage the veteran's well-being. It must also include the veteran's consent.

What to gather and how to apply

You apply online at MySBA Certifications. Only the Qualified Owner, the veteran who owns and runs the business, can sign and submit. VetCert documents lists what to gather by type of business, the steps and what slows a review.

The control trap

One place applications go wrong: the application says the veteran runs the business, but the operating agreement or bylaws say otherwise. SBA's appeals office has said the governing documents decide who controls a business.

Qualifying veterans must control long-term decisions and day-to-day operations. No one else may control the business, or have the power to block action by its board or veteran owners. The exceptions are a few extraordinary matters that protect a minority owner's investment, such as selling the company. Veterans must also meet every unanimous or supermajority voting requirement on running the business.

SBA denied two businesses over clauses needing unanimous consent, and the appeals office granted both appeals: Blue Skye Foods, LLC, SBA No. VSBC-442-A, and Datawize Technologies LLC, SBA No. VSBC-458-A. VetCert control rules explains why each won, why not to count on the second, and what to check before you apply.

Free help, and nobody needs to be paid

SBA says applying to its programs costs nothing, and capability statements are not required. It will not ask for information from any email address but @sba.gov. Its certification site calls 1-866-SBA-HELP the only legitimate SBA certifications phone number.

Its VetCert FAQ points applicants to free counseling from SCORE, Small Business Development Centers, Women's Business Centers and Veterans Business Outreach Centers.

APEX Accelerators

APEX Accelerators, once called Procurement Technical Assistance Centers, are run by the U.S. Department of War and say their guidance is no-cost. SBA says they can help you judge your readiness for federal contracting, register in the right places, and check your eligibility for certifications. Find yours at apexaccelerators.us.

Veterans Business Outreach Centers

This SBA program serves service members, veterans, Guard and Reserve members, military spouses and families starting or growing a small business. It offers workshops, training, counseling and mentorship, and each client can work directly with a business counselor. Find yours by state on SBA's resource partners page.

SBA's own help line

Call 866-SBA-HELP (866-722-4357), Monday to Friday, 8 a.m. to 6 p.m. Eastern, not counting federal holidays. You can also email certifications@sba.gov or use the help desk at certifications.sba.gov/help.

What certification does and does not do

SBA says a certified SDVOSB can compete for SDVOSB set-asides and sole source contracts government-wide. VOSB contracts exist only at the VA, where a certified SDVOSB also counts as a VOSB. When it bids, a business must also be small under the industry code on that contract.

Certification does not award a contract. Contracting officers are authorized to set contracts aside or award them sole source. Outside the VA, a sole source award to an SDVOSB also needs set conditions met.

If SBA denies an application, an appeal to its Office of Hearings and Appeals must be filed within 45 business days of receiving the denial. A late appeal is dismissed. A denial for lack of proof of veteran or service-disabled status cannot be appealed there. VetCert denied covers the appeal and applying again.

A business must recertify every 3 years. SBA has extended end dates more than once, so yours may be later than your certification letter shows. Confirm it with SBA before you count on it. Between renewals, the business must report changes that could affect eligibility within 30 calendar days. VetCert renewal covers end dates, renewing, reporting and examinations.

This site teaches how VetCert works. It does not apply for anyone, and nothing here promises what SBA decides.