Reviewed by Jonathan Teplitsky · Updated July 2026
This page is informational only and is not affiliated with the U.S. Department of Veterans Affairs or the Small Business Administration. It does not guarantee certification approval or contract awards. Confirm current rules directly with SBA and VA before applying.
What VOSB and SDVOSB certification actually gets you
The core benefit of veteran-owned business certification is access to federal contracts set aside specifically for veterans -- not a tax credit, grant, or direct payment. Once certified, a business can compete for, and in some cases receive sole-source awards for, contract competitions that non-certified businesses cannot enter, according to SBA.gov.
VOSB vs. SDVOSB: the ownership threshold
Both certifications share the same core ownership rule, with one added condition for SDVOSB:
| Certification | Ownership requirement |
|---|---|
| VOSB (Veteran-Owned Small Business) | At least 51% owned and controlled by one or more veterans |
| SDVOSB (Service-Disabled VOSB) | At least 51% owned and controlled by one or more veterans rated service-disabled by the VA |
How to get certified
Certification is handled through the SBA's MySBA Certifications portal. This reflects a shift to the SBA as the single government-wide certifying agency for veteran-owned businesses, a transition SBA.gov reported clearing a program backlog on in November 2025. A business is not automatically certified just because it's veteran-owned -- an owner has to apply and be approved first.
How much contracting is actually set aside
The set-asides are real and government-wide, not VA-only:
- Government-wide: at least 5% of all federal contracting dollars each year are set aside specifically for certified SDVOSBs, per SBA.gov.
- VA-specific: the VA's Veterans First Contracting Program sets aside at least 7% of VA's own contracts each year for certified VOSBs and SDVOSBs, and gives VA contracting officers the authority to make sole-source awards directly to them.
What this benefit is not
VOSB and SDVOSB status is a contracting-eligibility benefit, not a cash benefit. It does not pay a business owner directly, does not reduce federal taxes on its own, and does not guarantee a contract -- it only opens the door to competitions a non-certified business cannot enter. Winning still depends on submitting a competitive bid.
What to do next
If you're a disabled veteran weighing entrepreneurship against other transition paths, see our best jobs for veterans guide and our SkillBridge page for a pre-separation option that lets you train with a civilian employer, including a business, before you leave service.
Frequently asked questions about veteran-owned business benefits
What's the main benefit? Access to federal contracts set aside for certified veteran-owned businesses -- not a direct payment.
Who certifies VOSB/SDVOSB status? The SBA, through its MySBA Certifications portal.
How much contracting is set aside? At least 5% government-wide for SDVOSBs, plus at least 7% of VA's own contracts under Veterans First.