SDVOSB Set-Aside Eligibility Checker
Walk through the four core SDVOSB requirements — veteran status, service-connected disability, ownership percentage, and management control — to assess whether your business meets SBA VetCert criteria.
Check your eligibility
Step 1 of 4 — Veteran Status
Are you a veteran of the U.S. Armed Forces?
Served on active duty in the Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, or National Guard/Reserve in a federal active-duty capacity.
This tool provides general guidance only and does not constitute legal advice. SDVOSB eligibility is ultimately determined by SBA VetCert reviewers. Consult an attorney or SBA resource partner (PTAC/APEX) before applying.
The four SDVOSB eligibility requirements
Common SDVOSB disqualifiers
These are the most frequent reasons SBA VetCert applications are denied or certifications revoked.
| Issue | Requirement affected | How to resolve |
|---|---|---|
| Non-veteran holds CEO/President title | Control | Amend operating agreement; veteran must hold highest title |
| Investor has veto over day-to-day decisions | Control | Limit investor veto rights to extraordinary events only |
| Stock options could dilute veteran below 51% | Ownership | Cancel options or restructure so veteran ownership stays above 51% even if exercised |
| Non-veteran manages daily operations | Control | Veteran must actually run operations — title alone is not sufficient |
| Pending VA disability claim (no decision letter) | Disability | Wait for VA decision letter; 0% is fine once formally issued |
| Joint venture reduces veteran ownership | Ownership | Ensure JV agreement doesn't dilute the SDVOSB's independent ownership |
| Outdated SAM.gov registration | All | Renew SAM.gov registration annually; expired registration voids set-aside eligibility |
Frequently Asked Questions
What are the four core SDVOSB eligibility requirements?
To qualify as an SDVOSB under SBA VetCert, your business must meet four requirements: (1) at least one owner must be a veteran of the U.S. Armed Forces with an other-than-dishonorable discharge, (2) that veteran must have a service-connected disability determination from the VA or DoD, (3) service-disabled veterans must unconditionally own at least 51% of the business, and (4) a service-disabled veteran must hold the highest officer position and control both day-to-day management and long-term strategic decision-making.
Does a 0% disability rating qualify for SDVOSB?
Yes. Any service-connected disability determination qualifies for SDVOSB, including a 0% rating with a formal VA determination letter. What matters is that the VA or DoD has formally determined that the disability is connected to your military service — not the severity of the rating. However, a pending claim is not sufficient; you need a final decision letter.
What does 'unconditional ownership' mean for SDVOSB purposes?
Unconditional ownership means the service-disabled veteran's interest is not subject to any conditions or agreements that could reduce it below 51% in the future. Common issues include stock options granted to investors or employees that could dilute veteran ownership, convertible notes that convert to equity at below-market rates, and put/call agreements that give others the right to buy veteran ownership at a fixed (below-market) price. The SBA evaluates the economic reality of ownership, not just the stated percentage.
Can a non-veteran be involved in the business?
Yes. Non-veterans can own up to 49% of an SDVOSB, and non-veterans can serve in management roles — but service-disabled veterans must hold the highest officer title and must actually control day-to-day management. A common disqualifier is when a non-veteran co-founder or key employee actually runs daily operations while the veteran serves as a titular CEO. The SBA evaluates actual control, not just org charts.
What is the difference between SDVOSB and VOSB?
SDVOSB (Service-Disabled Veteran-Owned Small Business) requires a service-connected disability determination from the VA or DoD. VOSB (Veteran-Owned Small Business) requires only honorable veteran status with no disability requirement. SDVOSB has a distinct procurement preference — federal agencies can set aside contracts exclusively for SDVOSBs before opening to the broader VOSB pool. Both programs are now administered through the SBA VetCert program.
What if the service-disabled veteran is 100% permanently and totally disabled (P&T)?
If the service-disabled veteran owner has a 100% permanent and total (P&T) disability rating, SBA regulations allow a surviving spouse or a permanent caregiver to control and manage the SDVOSB in place of the veteran. This is an exception to the standard control requirements and must be documented when applying for VetCert certification.
Do investor board veto rights disqualify SDVOSB status?
It depends on what the veto rights cover. Veto rights over extraordinary events (sale of the company, dissolution, large debt issuance) are generally acceptable. However, veto rights or required board approvals for routine day-to-day business decisions — standard contracts, ordinary hires, typical purchases — can undermine the veteran's control and disqualify the business. Review your operating agreement or shareholder agreement with an attorney familiar with SBA 13 CFR Part 125.
How is the SBA VetCert application process different from the old VA VFCP?
The VA's Veterans First Contracting Program (VFCP) was transferred to the SBA effective January 1, 2023. The SBA's VetCert program is now the sole certification authority for SDVOSBs and VOSBs. Existing VA-certified businesses needed to recertify through SBA VetCert. The core eligibility standards are similar, but the SBA has applied stricter standards around control and ownership documentation.
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