Service-disabled veterans who own small businesses in New York can access federal contracts set aside specifically for them. The federal government is required by law to award a minimum of 3% of all federal contracting dollars to service-disabled veteran-owned small businesses each fiscal year. For context, the federal government awarded roughly $700 billion in contracts in FY2023. That 3% floor represents real money, and New York sits in one of the most contract-dense regions in the country.
This guide covers what it takes to qualify, how to apply, and what the certification actually unlocks once you have it.
What SDVOSB certification is
SDVOSB stands for Service-Disabled Veteran-Owned Small Business. It is a federal small business designation managed by the SBA. Certified businesses can compete for contracts set aside exclusively for SDVOSBs, which removes a significant portion of the competition for each solicitation.
The certification is distinct from simply self-certifying as a veteran-owned business. Before 2023, businesses could self-certify their SDVOSB status in SAM.gov without third-party verification. That changed on January 1, 2023, when Congress required all SDVOSBs to obtain third-party certification through the SBA's VetCert program to compete for set-aside contracts. Self-certification is no longer accepted.
Eligibility requirements
To qualify for SDVOSB certification, your business must meet three conditions.
First, at least 51% of the business must be owned and controlled by one or more service-disabled veterans. Ownership alone is not enough. The service-disabled veteran must also control day-to-day operations and long-term decision-making. If a non-veteran holds a key management role or has veto rights over major business decisions, SBA reviewers will scrutinize that arrangement closely.
Second, the veteran owner must have a service-connected disability rating from the Department of Veterans Affairs or the Department of Defense. There is no minimum disability percentage required. A 0% rating qualifies as long as it is officially service-connected.
Third, the business must qualify as a small business under SBA size standards for its primary NAICS code. Size standards vary by industry. For most professional services, the threshold is $19 million or $25.5 million in average annual receipts. For many manufacturing NAICS codes, the threshold is 500 or 1,500 employees. Check the specific standard for your primary NAICS code at sba.gov before you apply.
If the service-disabled veteran owner is deceased, the spouse or permanent caregiver may retain SDVOSB eligibility in certain circumstances under SBA rules.
How to apply: the SBA VetCert portal
All SDVOSB applications go through the SBA's VetCert portal at vetcert.sba.gov. You will need an active SAM.gov registration before you can apply.
The application asks for documentation in three categories: proof of veteran status and service-connected disability, proof of business ownership (operating agreement, stock certificates, or equivalent), and proof of business size (tax returns, financial statements).
Gather these before you start the application. Incomplete submissions are a common cause of delays. The SBA typically takes 60 to 90 days to process a complete application, though processing times can run longer during high-volume periods.
Key documents to prepare:
- DD Form 214 (Certificate of Release or Discharge from Active Duty)
- VA disability rating letter or DoD determination letter showing service-connected disability
- Articles of incorporation or organization
- Operating agreement or bylaws showing ownership percentages and management authority
- Three years of federal tax returns (business and personal if applicable)
- Current balance sheet and profit and loss statement
Once certified, SDVOSB status is valid for three years, after which you must recertify.
What contracts it unlocks
SDVOSB certification opens two separate set-aside pools.
The first is governmentwide SDVOSB set-asides under the Federal Acquisition Regulation. Any federal civilian or military agency can set aside contracts for SDVOSB competition. The contracting officer must first determine that at least two SDVOSBs are capable of performing the work at a fair price before the set-aside applies.
The second pool is VA-specific. The Department of Veterans Affairs operates the Veterans First Contracting Program, which gives priority to veteran-owned businesses for VA acquisitions. Within that program, SDVOSBs have first priority over businesses that are veteran-owned but not service-disabled. The VA spent approximately $11.6 billion with veteran-owned small businesses in FY2022, with SDVOSBs receiving the majority of that spend.
If you plan to pursue VA contracts, your SDVOSB certification through SBA VetCert also serves as your verification for VA's Veterans First program. The two systems share data, so you do not need to apply separately with the VA.
New York's federal contracting landscape
New York is one of the top five states by total federal contract spending. The largest buyers in the state include the Department of Defense, the Department of Veterans Affairs, the Department of Homeland Security, and the General Services Administration.
Several federal installations and facilities generate consistent contracting demand. Fort Drum in Jefferson County is one of the largest Army installations on the East Coast and a consistent buyer of construction, logistics, and professional services. West Point in Orange County regularly contracts for maintenance, professional services, and technology. The VA New York Harbor Healthcare System, which operates campuses in Manhattan and Brooklyn, is a major VA buyer with consistent procurement needs across facilities management, healthcare staffing, and IT. The Stratton VA Medical Center in Albany also generates regular procurement activity.
The federal courts, Social Security Administration, and federal law enforcement agencies operating throughout New York City, Albany, Buffalo, and Rochester represent additional contracting demand in professional services and technology categories.
Free help: New York APEX Accelerator (Empire State)
The New York APEX Accelerator (Empire State) provides free counseling to small businesses pursuing federal certification and contracting. APEX Accelerators are funded by the Department of Defense and do not charge for their services. Counselors can help you assess whether you meet SDVOSB eligibility requirements, review your documentation before you submit to SBA VetCert, and identify set-aside contract opportunities in your NAICS codes.
If you are new to federal contracting, working with an APEX Accelerator before you apply can save you significant time. They see the common documentation mistakes that cause applications to get sent back or denied.
State-level certifications that complement SDVOSB
New York does not have a state-level SDVOSB equivalent that mirrors the federal program. The state's primary veteran business designation is administered through the Office of General Services (OGS) and applies specifically to contracts with state agencies, not federal contracts.
For state contracting, New York recognizes Service-Disabled Veteran-Owned Business (SDVOB) status under the Service-Disabled Veteran-Owned Business Act. The state program is separate from the federal SBA VetCert certification and requires its own application through the New York State Division of Service-Disabled Veterans' Business Development. State SDVOB certification targets the 6% goal New York sets for SDVOB participation in state contracts and is worth pursuing if you plan to bid on state agency work.
Holding both federal SDVOSB and New York state SDVOB certifications covers you across both contracting markets.
Stacking certifications
If your business qualifies for additional diversity certifications, stacking them increases your competitiveness. A service-disabled veteran who is also a member of a minority group may qualify for SBA 8(a) Business Development Program admission, which layers a nine-year contracting program with sole-source contract access on top of SDVOSB set-asides.
Businesses owned by service-disabled veteran women may qualify for WOSB certification through SBA, which adds access to women-owned small business set-asides. New York City additionally maintains the Minority and Women-Owned Business Enterprise (M/WBE) certification program for city-funded contracts, and the New York State Disadvantaged Business Enterprise (DBE) program governs transportation-related contracts funded with federal dollars.
None of these certifications conflict. You can hold multiple designations and use whichever applies to a given solicitation.
Timeline summary
Expect the process to take approximately four to five months from start to a fully active certification, if you start with your documents in order.
- Weeks 1 to 2: Confirm active SAM.gov registration; gather all required documentation
- Weeks 3 to 4: Submit application through vetcert.sba.gov
- Weeks 4 to 16: SBA review period (60 to 90 days typical; longer possible)
- After approval: Certification reflected in SAM.gov; begin bidding on set-aside contracts
If you are concurrently pursuing New York state SDVOB certification, begin that application after your SBA VetCert application is in review, since the two processes are independent and you will need some of the same documentation for both.
The New York APEX Accelerator (Empire State) is the right starting point if you have not yet been through federal certification. Their counselors work with veteran-owned businesses regularly and can tell you quickly whether your documentation is ready to submit.
