Getting certified as a veteran-owned or service-disabled veteran-owned small business opens doors to government contracts worth billions — and makes lenders significantly more confident in your application. Here's the complete process.
If you're a veteran business owner who hasn't pursued official certification yet, you may be leaving significant money on the table — both in government contracting opportunities and in the signal of credibility it sends to lenders.
The federal government is legally required to direct 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). In practice, that's billions of dollars in contracts each year that are set aside specifically for businesses like yours. But to access them, you need certification.
Two Main Certifications to Know
Veteran-Owned Small Business (VOSB)
A VOSB is any small business that is at least 51% owned and controlled by one or more veterans. "Control" means the veteran is the primary decision-maker for the company — they set strategy, have the final say on hiring and major contracts, and are involved in day-to-day operations.
Service-Disabled Veteran-Owned Small Business (SDVOSB)
An SDVOSB has the same 51% ownership requirement, but the veteran owner must have a service-connected disability — meaning a disability that was caused or worsened by their military service. This certification unlocks access to sole-source contracts (contracts where the government can award without a competitive bidding process) and set-aside contracts specifically reserved for SDVOSBs.
Where to Get Certified
SBA Veteran Certification (VetCert)
As of January 2023, the SBA took over the certification process from the Department of Veterans Affairs. The new program is called VetCert and is administered at veterans.certify.sba.gov. This is the certification you need to compete for set-aside federal contracts.
National Veteran Business Development Council (NVBDC)
The NVBDC is a private certification organization accepted by many Fortune 500 companies and state governments. If your goal is to sell to large corporations rather than the federal government, NVBDC certification may be more relevant. Their process is rigorous but well-respected.
State-Level Certifications
Many states have their own veteran business certification programs with their own set-aside programs. Since these vary considerably by state, check with your state's Office of Small and Disadvantaged Business Utilization or your local SBDC for details.
The VetCert Application Process — Step by Step
- 1Create an account at veterans.certify.sba.gov
- 2Complete the online application — this includes detailed questions about your ownership structure, management role, and veteran status
- 3Upload supporting documents — typically including your DD-214 (Certificate of Release or Discharge from Active Duty), business formation documents (articles of incorporation or LLC operating agreement), a government-issued ID, and your most recent business tax return
- 4For SDVOSB: submit documentation of your service-connected disability from the VA
- 5Wait for review — the SBA typically processes applications within 60–90 days
- 6Receive your certification letter and update your SAM.gov registration to reflect your certification
How Certification Affects Your Loan Applications
Having federal certification doesn't directly change your loan terms, but it affects your application in three meaningful ways:
- It signals credibility — A certification from the federal government is a meaningful third-party validation of your veteran status and business ownership. Lenders notice this.
- It may unlock additional grant programs — Several organizations specifically fund certified VOSBs and SDVOSBs, including Hirepurpose, the Warrior-Scholar Project, and various private foundations. Grant money doesn't need to be repaid.
- It gives you access to revenue opportunities that strengthen your loan application — If you've won government contracts under your SDVOSB certification, those contracts are evidence of future revenue, which significantly improves your debt service coverage ratio — the calculation lenders use to determine if you can repay the loan.
Other Certifications Worth Considering
| Certification | Administered By | Primary Benefit |
|---|---|---|
| VetCert (VOSB/SDVOSB) | SBA | Federal set-aside contracts |
| HUBZone | SBA | Contracts if located in underserved areas |
| 8(a) Business Development | SBA | 9-year mentorship + sole-source contracts |
| Women-Owned Small Business (WOSB) | SBA | Relevant for veteran women entrepreneurs |
| Minority-Owned Business | NMSDC | Corporate supplier diversity programs |
Pro Tip: Getting certified is free through the SBA's VetCert program. There is no application fee. The only cost is your time — and given the contracting opportunities it opens, that investment pays off quickly.
The Bottom Line
Certification is one of the highest-leverage actions a veteran business owner can take. It opens government contracting, strengthens loan applications, unlocks grant opportunities, and — perhaps most importantly — connects you to a community of veteran entrepreneurs who can share leads, subcontract opportunities, and advice. Start the VetCert application this week. The process takes some time, but the sooner you begin, the sooner these doors open.
The Veteran's Business Funding Blueprint: How to Find, Qualify For, and Secure a Business Loan Using Your Military Service
A complete 6-chapter guide covering every loan program, qualification strategy, document checklist, and negotiation tactic — written for veterans, by veterans. Free, no credit card required.
