Question 1

Must SDVOSB owners be U.S. citizens?

Accepted Answer

Yes. Each service-disabled veteran owner must be a U.S. citizen. Permanent resident aliens (green card holders) do not qualify, even if they served in the U.S. military. This citizenship requirement applies to all owners whose veteran status is being used to establish SDVOSB eligibility. Non-citizen veteran owners who hold a minority stake do not affect eligibility as long as the 51% threshold is met by citizen veterans.

Question 2

What ownership percentage is required for SDVOSB status?

Accepted Answer

At least 51% of the business must be unconditionally owned by one or more service-disabled veterans. Ownership must be direct — ownership through an intervening entity generally does not count unless each layer of the structure is also more than 50% owned by service-disabled veterans. The 51% threshold applies to all economic interests including profits, losses, and liquidation rights.

Question 3

Can a foreign national or foreign entity own a stake in an SDVOSB?

Accepted Answer

Service-disabled veteran owners must be U.S. citizens, but non-veteran minority owners can include non-citizens or foreign entities as long as they collectively hold less than 49% and have no control. However, many SDVOSB contracts involve classified work or controlled technology — such contracts typically require that all key personnel and significant owners be U.S. citizens or cleared nationals. Foreign ownership can also trigger FOCI (Foreign Ownership, Control, or Influence) reviews.

Must SDVOSB owners be U.S. citizens?

More on Eligibility & Certification

Related Questions

Related Tools & Directories