Texas is home to more veterans than any other state, roughly 1.5 million according to the VA. That concentration matters for federal contracting: agencies with large footprints in the state are active buyers, and SDVOSB certification is what gets you into the contracting lanes they're required to use. Here is what you need to know before you apply.
What SDVOSB certification is
Service-Disabled Veteran-Owned Small Business (SDVOSB) is a federal small business designation administered by the SBA. It grants eligibility for two distinct contract vehicles: VA-specific set-asides through the VA's VOSB Verification Program, and governmentwide SDVOSB set-asides under the Federal Acquisition Regulation.
The federal government has a statutory goal of awarding 3% of all prime contract dollars to SDVOSBs each year. In FY2023, that translated to roughly $25 billion in contract actions. The VA operates its own parallel program under the Veterans First Contracting Program, where set-asides to SDVOSBs and VOSBs are prioritized before any other small business preference.
Eligibility requirements
Two criteria do most of the work.
51% or more ownership by a service-disabled veteran. The qualifying veteran must hold at least 51% unconditional ownership of the business and must control its day-to-day operations and long-term decisions. Control means the veteran is the highest-compensated employee or can document why they aren't. The veteran must also hold the highest officer position (CEO, president, or equivalent managing member).
Service-connected disability rating from the VA. The veteran must have a disability rating of at least 0% from the VA or DoD, documented in VA records. A 0% rating still qualifies as service-connected. There is no minimum rating threshold beyond the existence of a service-connected disability.
Small business under SBA size standards. Your business must qualify as small under the NAICS code(s) you intend to pursue. Size standards vary by industry. Most service businesses are capped at annual revenue between $8 million and $47 million; manufacturing and construction firms are sized by employee count (usually 500 or fewer). Check the current standards at sba.gov before assuming you qualify.
Additional requirements: the business must be organized as a for-profit entity, primarily operated in the United States, and the veteran's citizenship must be documented.
How to apply: SBA VetCert
Since January 2023, the SBA is the sole certifying authority for SDVOSB status. The VA previously ran its own separate verification program; that has been consolidated into SBA's VetCert platform at vetcert.sba.gov.
Step 1: Register in SAM.gov. Your business needs an active System for Award Management registration before you can apply. SAM.gov registration is free and takes 7 to 10 business days to activate. You'll also need a UEI (Unique Entity Identifier), which SAM.gov assigns automatically during registration.
Step 2: Gather your documents. You'll need: VA disability rating letter, government-issued ID for the qualifying veteran, proof of citizenship (passport or birth certificate), business formation documents (articles of incorporation, operating agreement, or partnership agreement), ownership and stock records, federal tax returns for the past two years, and any buy-sell agreements or shareholder agreements that affect control.
Step 3: Submit through VetCert. Create an account at vetcert.sba.gov and complete the application. The portal walks you through each section. Upload all required documents directly in the system.
Step 4: SBA review. An SBA analyst reviews your application, which can include a site visit or follow-up questions. Current SBA processing times run approximately 60 to 90 days, though complex applications take longer. You'll receive a certification decision in writing.
Once approved, your SDVOSB status is active for three years, then requires recertification.
What contracts SDVOSB unlocks in Texas
Texas has one of the densest concentrations of federal buyers in the country. The state hosts major Army installations at Fort Cavazos (formerly Fort Hood) and Fort Bliss, Air Force installations at Joint Base San Antonio and Dyess Air Force Base, and Naval Air Station Corpus Christi. The VA operates multiple medical centers across the state, including facilities in Houston, Dallas, San Antonio, and Temple.
For SDVOSB-certified firms, these installations and VA facilities represent direct contracting opportunities. Contracting officers at agencies with unmet SDVOSB contracting goals are required to set contracts aside for SDVOSBs when two or more capable firms are likely to compete. At the VA specifically, the Veterans First rule means SDVOSB and VOSB set-asides happen before any other small business category.
Common contracting categories active in Texas include construction and facilities maintenance, IT services and cybersecurity, logistics and transportation, healthcare staffing, and professional services tied to base operations. You can search active opportunities at SAM.gov using NAICS codes relevant to your business and filtering by place of performance.
Free help: Texas APEX Accelerator at UTSA
The Texas APEX Accelerator, operated through the University of Texas at San Antonio, offers free one-on-one advising to help small businesses pursue federal contracts. Their advisors can walk you through the VetCert application process, review your documents before submission, help you build a capability statement, and identify specific solicitations in your NAICS codes.
APEX Accelerators (formerly PTAC offices) are federally funded specifically to help businesses like yours compete for government contracts. There is no cost to use their services. Contact the Texas APEX Accelerator through the UTSA Small Business Development Center network.
Texas state-level certifications that complement SDVOSB
Texas has its own Historically Underutilized Business (HUB) program, administered by the Texas Comptroller of Public Accounts. HUB certification is separate from federal SDVOSB status and covers state agency contracts, including Texas Department of Transportation, UT System, and Texas A&M System procurement.
For veteran-owned businesses specifically, Texas recognizes veteran status within the HUB program's small business category. Applying for both HUB and SDVOSB puts you in position to compete for state contracts in Texas alongside federal work.
If you also qualify as a minority-owned or woman-owned business, federal MBE and WBE certifications through NMSDC and WBENC can be pursued simultaneously. Those open corporate supplier diversity programs, which run independently of federal contracting preferences. The SBA's Mentor-Protégé program, available to 8(a) firms and SDVOSBs, is another lane worth exploring if your federal revenue is growing and you want to pursue larger prime contracts through joint ventures.
Timeline
Expect 3 to 5 months from starting your SAM.gov registration to having active SDVOSB certification in hand. The breakdown: 1 to 2 weeks for SAM.gov activation, 2 to 4 weeks to prepare documents, and 60 to 90 days for SBA review. Start early. Contracting officers cannot award SDVOSB set-aside contracts to firms that are not yet certified, and the review clock starts when you submit a complete application, not when you start gathering documents.
