Service-Disabled Veteran-Owned Small Business (SDVOSB) certification is one of the most valuable federal set-aside designations available. If you served, left with a service-connected disability rating from the VA, and now run a small business in New Jersey, you have access to a dedicated slice of federal procurement spending that most competitors cannot touch.
This guide covers the eligibility rules, the application process, what the certification actually gets you in terms of contracts, and the New Jersey-specific context you need to operate here.
What SDVOSB certification is
SDVOSB is a federal designation created under the Veterans Benefits, Health Care, and Information Technology Act of 2006. It authorizes federal contracting officers to set aside contracts exclusively for businesses owned and controlled by service-disabled veterans.
The program operates at two levels. First, the government-wide SDVOSB set-aside authority applies across all federal agencies under the Federal Acquisition Regulation (FAR 19.14). Second, the Department of Veterans Affairs runs a parallel program called the Veteran-Owned Small Business (VOSB) Verification Program, which covers VA-specific contracts. For VA work, you must hold verified status through SBA VetCert. That verification satisfies both the VA program and the government-wide set-aside authority.
Eligibility requirements
The rules are specific. You meet the eligibility threshold if:
Ownership. One or more service-disabled veterans must own at least 51% of the business. For LLCs, that means 51%+ of membership interests. For corporations, 51%+ of all voting stock.
Control. A service-disabled veteran must hold the highest officer position (CEO, president, or managing member) and control day-to-day operations and long-term decision-making. The control test goes beyond ownership on paper. Licensing restrictions, board structures, or operating agreements that dilute a veteran's practical authority will disqualify the application.
Service-connected disability. The veteran must have a service-connected disability rating from the VA or Department of Defense. There is no minimum rating percentage. A 10% rating qualifies just as much as a 90% rating.
Small business size. Your business must qualify as small under the applicable SBA size standard for your primary NAICS code. Size standards vary by industry. Manufacturing firms are generally measured by number of employees (typically 500 or fewer). Service businesses are usually measured by average annual receipts, with limits ranging from $8 million to over $40 million depending on the specific NAICS code. You can look up the size standard for your NAICS code at sba.gov/size-standards.
Citizenship. All service-disabled veteran owners with 51%+ ownership must be U.S. citizens.
How to apply: SBA VetCert
As of January 1, 2023, the SBA became the sole certifying authority for SDVOSB status across all federal agencies, including the VA. The previous VA-run CVE (Center for Verification and Evaluation) program has been fully transferred to SBA.
You apply at vetcert.sba.gov.
The application requires:
- VA disability rating letter showing service-connected disability
- DD-214 (Certificate of Release or Discharge from Active Duty)
- Business formation documents (articles of incorporation, operating agreement, or partnership agreement)
- Financial statements or tax returns demonstrating size eligibility
- Proof of ownership percentage (stock ledger, membership certificates)
- Completed online certification questionnaire
The review process typically takes 60 to 90 days. SBA may issue a Request for Information (RFI) asking for clarification or additional documents, which pauses the clock. Respond to RFIs promptly. A missed or late RFI response is one of the most common reasons applications stall.
Once certified, your business is listed in the System for Award Management (SAM.gov) as SDVOSB-verified. Certification must be renewed annually.
What contracts it unlocks
Federal contracting officers can use SDVOSB set-asides when there is a reasonable expectation that at least two SDVOSB firms will submit competitive offers at a fair market price. At the VA, the threshold is lower: the VA must first look for SDVOSB vendors before opening competition more broadly (the "Rule of Two" applies specifically to VA acquisitions under the Veterans First Contracting Program).
Government-wide, the federal government has a statutory goal of awarding 3% of all prime contract dollars to SDVOSBs annually. In FY2023, agencies awarded approximately $27 billion to SDVOSB firms. That figure covers defense contracts, civilian agency IT, facilities, professional services, logistics, and construction.
The VA is the largest single buyer from verified SDVOSBs. VA contracts span medical supplies, construction at VA medical centers, IT systems, prosthetics, staffing, and professional services. New Jersey has two major VA medical facilities: the VA New Jersey Health Care System (East Orange and Lyons campuses). Both campuses generate procurement activity across maintenance, clinical services, and construction.
Beyond the VA, active federal buyers in New Jersey include:
- Picatinny Arsenal (Morris County): Weapons research and development. Significant NAICS codes in R&D, engineering, and manufacturing services.
- Joint Base McGuire-Dix-Lakehurst: The largest joint base in the country by acreage, with procurement across logistics, facilities, IT, and services.
- Naval Weapons Station Earle (Monmouth County): Ammunition storage and handling. Procurement in transportation, facilities maintenance, and logistics.
- Defense Logistics Agency (DLA): DLA has distribution operations in New Jersey and regularly contracts for warehousing, transportation, and supply chain services.
New Jersey-specific state certification
New Jersey does not have a direct state-level SDVOSB equivalent, but it does have a veteran business certification program administered by the New Jersey Department of Military and Veterans Affairs (NJDMAVA). This certification covers state procurement set-asides and preference programs for veteran-owned businesses, including service-disabled veterans.
New Jersey also runs the Small Business Enterprise (SBE) program through the Division of Purchase and Property. SBE status can qualify you for bid preferences on state contracts. For transportation-related state and local government contracts, the NJ Department of Transportation administers a Disadvantaged Business Enterprise (DBE) program under federal guidelines. DBE status requires showing social and economic disadvantage, not veteran status specifically, but some veteran-owned businesses qualify on both grounds.
Holding both federal SDVOSB and New Jersey veteran business certification gives you coverage across federal set-asides and state preference programs simultaneously. They require separate applications but use much of the same underlying documentation.
For businesses also pursuing MBE or WBE certification, the New Jersey Department of Treasury administers a state-level Minority Business Enterprise and Women Business Enterprise certification. MBE/WBE certification in New Jersey covers state agency contracts and applies to businesses where a qualifying group member holds 51%+ ownership and control. You can hold SDVOSB and MBE certifications concurrently if the ownership and control requirements are satisfied for each.
Free help: New Jersey APEX Accelerator
The New Jersey APEX Accelerator, operated through the New Jersey Economic Development Authority (NJEDA), provides free one-on-one counseling for businesses pursuing federal certifications and contracts. APEX counselors can review your application materials before you submit, help identify which NAICS codes align with your business, and connect you to active contracting opportunities at federal installations in the state.
APEX Accelerators do not charge for their services. They are federally funded through the Department of Defense. If you are working through the VetCert application and want a second set of eyes on your ownership and control documentation, the New Jersey APEX Accelerator is the right first call.
Estimated timeline
- SAM.gov registration: 1 to 2 weeks (required before applying for VetCert)
- Document preparation: 2 to 4 weeks depending on how organized your business records are
- SBA VetCert review: 60 to 90 days
- Total from start to certification: 3 to 5 months in most cases
If you receive an RFI during the review, respond within 10 business days. Extensions are possible but slow the process further.
One practical step: get your SAM.gov registration active before you apply to VetCert. SAM.gov registration is a prerequisite for federal contracting regardless of certification status, and registration delays are common for first-time applicants.
