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SBA Set-Aside Program

Service-Disabled Veteran-Owned Small Business

Set-aside program for small businesses at least 51% owned and controlled by service-disabled veterans. Mandatory SBA certification required as of 2024. Strong demand at VA and DoD where SDVOSB goals are aggressively pursued.

Processing Time

SBA SDVOSB certification: 2-4 months for clean applications.

Term

3 years, with no recertification required during the term unless ownership/control changes materially.

Certified By

U.S. Small Business Administration (SBA) — formerly VA CVE

Program Overview

SDVOSB is among the most valuable federal small business set-aside categories. Demand is strong across federal agencies — particularly at VA where the Veterans First Contracting Program prioritizes SDVOSB/VOSB participation — and at DoD where the 3% federal SDVOSB goal is consistently exceeded. The 2024 transition to mandatory SBA certification (replacing self-certification) raised the bar for application quality but also created a more competitive but legitimate marketplace.

Eligibility Requirements

  • Small business per SBA size standard for primary NAICS
  • At least 51% owned by one or more service-disabled veterans
  • Service-disabled veteran(s) must control daily operations and long-term decision-making
  • VA-verified service-connected disability rating (formal VA documentation required)
  • Mandatory SBA certification (self-certification is no longer sufficient for award)

Benefits

  • Eligibility for SDVOSB set-aside contracts (only certified SDVOSBs may bid)
  • Sole-source contract awards up to $7M (manufacturing) or $4.5M (other)
  • Strong demand at VA (Veterans First Contracting Program), DoD, and across federal agencies meeting 3% SDVOSB goal
  • Joint venture pathways with non-SDVOSB primes under specific structural rules

Common Pitfalls

  • 1Bidding on SDVOSB set-asides before completing SBA certification (self-certification is no longer accepted)
  • 2Inadequate ownership/control documentation — the disabled veteran must actually run the business
  • 3Joint venture structures where the SDVOSB partner doesn't control (violates SBA mentor-protégé / JV rules)
  • 4Losing control after a veteran-owner's hospitalization or absence — control must be sustained, not nominal
  • 5Confusing SDVOSB (SBA) with VOSB (formerly VA — now merged into SDVOSB at SBA)

Governing FAR Clauses

Need help applying for SDVOSB certification?

Aliff helps firms navigate the SBA certification process, prepare a defensible application, and avoid the common pitfalls that delay or disqualify applications.