VetCert: How to Get Your Business Certified as Veteran-Owned

VetCert is the VA's certification program for veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB). A certified business can compete for contracts set aside specifically for veteran-owned businesses, contracts that reduce or eliminate competition from non-veteran companies.

Here's what VetCert is, what it requires, and whether pursuing it makes sense for your business.

What VetCert Certification Opens

The federal government has two procurement preferences specifically for veteran-owned businesses:

VOSB Set-Asides: Contracts competed exclusively among certified veteran-owned small businesses when at least two eligible companies can reasonably be expected to compete.

SDVOSB Set-Asides: A stronger preference, contracts competed among service-disabled veteran-owned small businesses first, before opening to the broader VOSB pool. The SDVOSB advantage is the set-aside and sole-source authority itself (FAR Subpart 19.14), not a pricing adjustment. There is no SDVOSB price evaluation preference; the 10% price evaluation preference in FAR 19.1307 applies to HUBZone businesses only.

In FY2023, the federal government awarded over $30 billion in contracts to veteran-owned small businesses, with SDVOSBs accounting for a significant portion. Certification creates access to this market that uncertified businesses cannot reach.

VetCert vs. Self-Certification (Historical Context)

Prior to January 2023, SDVOSBs could self-certify for federal set-asides outside the VA. Section 862 of the FY2021 National Defense Authorization Act (Pub. L. 116-283) changed that, moving certification from the VA to the SBA effective 1 January 2023. Since 1 January 2024, a VOSB or SDVOSB set-aside or sole-source award can go only to a firm the SBA has certified through VetCert.

This eliminated self-certification and created a verified database that contracting officers can rely on.

Eligibility Requirements

For VOSB:

• The business must be 51% owned and controlled by one or more veterans
• The veteran owner(s) must hold the highest officer position (CEO, President, or Managing Member)
• Day-to-day management and long-term decision-making must be controlled by the veteran
• The veteran must hold an unconditional ownership interest
• The business must meet SBA small business size standards for its industry (based on NAICS code)

For SDVOSB (additional requirement):

• The veteran owner must have a service-connected disability rating from the VA (any rating percentage qualifies, 0% or higher)

Common Disqualifiers

Ownership conditions: If a non-veteran spouse or partner holds any claim on ownership that could convert to ownership interest (e.g., community property in some states, options, or future interests), this can disqualify the veteran's unconditional ownership.

Management control: If a non-veteran employee, board member, or business partner exercises management control over the business, including if day-to-day decisions effectively rest with a non-veteran, the certification can be denied or revoked.

Size standards: SBA size standards vary by industry. A manufacturing company may qualify as "small" up to 500 employees; a consulting firm may have a revenue cap. Check your NAICS code's size standard at sba.gov.

How to Apply Through SBA VetCert

Applications are submitted through the SBA's Veteran Small Business Certification (VetCert) program at veterans.certify.sba.gov.

The application requires:

• Business documentation (articles of incorporation/organization, operating agreement, or partnership agreement)
• Proof of veteran status (DD-214 for VOSB; VA rating decision letter for SDVOSB)
• Financial documentation (personal financial statements, business financial statements)
• Documentation of management control (evidence of who makes decisions)

Processing time: SBA targets 60 days for a decision. Appeals are available if denied.

Annual Recertification

VetCert is not a one-time application. Businesses must recertify annually through the System for Award Management (SAM.gov) and notify the SBA of material changes in ownership or control.

Is It Worth Pursuing?

For businesses planning to pursue federal contracting: yes, pursue it from the start. The certification process forces you to document your business structure clearly, which is valuable regardless. And having certification ready before you bid means you don't scramble to certify mid-procurement.

For businesses not planning to pursue federal contracts: the certification has limited direct value. State veteran business certifications have different requirements and processes and are separate from the federal VetCert.

Start with SBA's free VBOC (Veteran Business Outreach Center) for guidance on the application, they help with certification as part of their services.

Sources: SBA VetCert program (veterans.certify.sba.gov), FY2021 NDAA sec. 862 (Pub. L. 116-283, moved certification to SBA), FY2024 NDAA sec. 863 (Pub. L. 118-31, raised the goal to 5%), 13 C.F.R. Part 128, FAR Part 19 (Small Business Programs), SBA size standards (sba.gov/size-standards)