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The federal government is required by law to set aside contracts specifically for service-disabled veteran-owned small businesses. Billions of dollars in contracts every year — and most veterans have never heard of the program.
If you have a service-connected disability rating from the VA, you may be sitting on one of the most powerful business advantages in the country.
Here’s how it works.
What Is SDVOSB?
SDVOSB stands for Service-Disabled Veteran-Owned Small Business. It’s a federal certification that gives your business preferential access to government contracts set aside exclusively for service-disabled veterans.
The federal government has a mandate to award at least 3 percent of all federal contracting dollars to SDVOSBs every year. In 2023 that was over $25 billion in contracts. The businesses that win those contracts understood the system and positioned themselves to compete.
Who Qualifies
To qualify for SDVOSB certification you need to meet these basic requirements.
You must have a service-connected disability rating from the VA — any rating, including 0 percent, qualifies as long as it is service-connected. You must own at least 51 percent of the business. You must control day-to-day operations and long-term decision making of the business. The business must qualify as a small business under SBA size standards for your industry.
How to Get Certified
SDVOSB certification is handled through the Small Business Administration. The process is done online through the SBA’s certification portal at certify.sba.gov.
You’ll need to create an account, complete the application, and upload supporting documents including your VA disability rating letter, business formation documents, and proof of ownership and control.
Processing times vary but typically run 30 to 90 days. Once certified your status is valid for three years before renewal.
What Kinds of Contracts Are Available
Government agencies buy everything. IT services, construction, logistics, staffing, consulting, facilities management, security services, transportation, and more. If a business can provide a product or service, there is likely a government agency buying it.
The key is matching your business capabilities to agency needs. Start by searching active set-aside contracts on SAM.gov — the federal government’s official contracting database. Filter by SDVOSB set-asides and look for contracts in your industry and geographic area.
The Real Opportunity
Most veterans who get SDVOSB certified never fully leverage it. They get the certification and then don’t know what to do next.
The veterans who build serious businesses from government contracting do three things consistently.
They register properly. SAM.gov registration is required to do business with the federal government. Get registered and keep it current.
They start small and build past performance. Past performance is everything in government contracting. Win small contracts first, deliver excellent work, and use that track record to compete for larger contracts over time.
They build relationships. Attend industry days, connect with contracting officers, and get on the radar of agencies that buy what you sell. Government contracting is a relationship business.
The Income Potential
A single government contract can be worth $500,000 to several million dollars. Veterans who build established government contracting businesses regularly generate $1 million to $10 million or more in annual revenue — with exit multiples that make the business highly sellable.
Combined with your SDVOSB certification, which competitors without a service-connected disability simply cannot obtain, you have a structural advantage that is essentially permanent.
Next Steps
Check your VA rating letter and confirm your service-connected disability status. Register your business on SAM.gov if you haven’t already. Apply for SDVOSB certification through certify.sba.gov. Search active SDVOSB set-aside contracts on SAM.gov to understand what opportunities exist in your industry.
You earned this benefit by serving. Use it.