In recent months, the Small Business Administration, or SBA, has undertaken efforts to support Veteran-owned small businesses with the introduction of the SBA Veteran Business Certification program, which establishes connections between Service-Disabled Veteran-Owned Small Businesses, or SDVOSB, and federal contracting opportunities. Additionally, the SBA has expanded current entrepreneurship training programs, particularly emphasizing support for Women Veterans and Disabled Veterans.

Federal loans to Veteran-owned small businesses saw a 14% increase last year, reflecting a consistent upward trend in entrepreneurial growth within the military community. In California alone, there are 147,432 Veteran small business owners, according to U.S. Small Business Administration Office of Advocacy. The agency disbursed over $1.1 billion in support to more than 2,800 Veteran companies this year, marking a substantial 40% increase in funding and a 33% rise in total loan numbers since 2020.

In June, President Biden signed an executive order directing the SBA to enhance support for aspiring Veteran entrepreneurs and Military Spouses seeking to establish their own businesses. Responding to this directive, the SBA has already announced plans to add six new Veteran Business Outreach Centers to their existing network of 22 sites.

The SBA’s Veteran Small Business Certification program, implemented in response to the National Defense Authorization Act for Fiscal Year 2021, streamlines the certification process for Service-Disabled Veteran-Owned Small Businesses and Veteran-Owned Small Businesses, VOSB. This transfer from the Department of Veterans Affairs to the SBA centralizes support for small business certification needs, simplifying the application process.

For interested Veterans, the application process is straightforward. By visiting the Veteran Small Business Certification portal, entrepreneurs can establish an SBA account, access checklists and pre-application guides, check eligibility, request information, and initiate the application process. This portal also allows businesses to search for certified Veteran-Owned Small Businesses or Service-Disabled Veteran-Owned Small Businesses.

To qualify for SBA certification as a VOSB or SDVOSB, a business must meet certain criteria, including being a small business, having at least 51% ownership and control by one or more Veterans, and, for SDVOSBs, having at least 51% ownership and control by Veterans rated as service-disabled by the VA.

The federal government is committed to awarding at least 3% of all federal contracting dollars to SDVOSBs each year. Businesses participating in the SDVOSB program gain eligibility for set-aside and sole-source contracts. While SDVOSBs can self-certify their status through 2023 for most federal agencies, the VA does not recognize SDVOSB self-certification. Therefore, SDVOSBs must apply for SBA certification by January 1, to compete for set-aside contracts with the federal government.

Another valuable resource for Veteran-Owned Small Businesses is the General Services Administration’s Federal Surplus Personal Property Donation Program. This program allows VOSBs to access federally owned personal property no longer in use. Participating businesses must commit to using the property in their normal business activities, adhere to restrictions on property disposal, and maintain ongoing eligibility with the SBA and the respective State Agency for Surplus Property.

For more details on program requirements and eligibility, businesses can contact the State Agency for Surplus Property in the state where their VOSB is headquartered. Additionally, entrepreneurs can reach out to the Office of Veterans Business Development at 202-205-6773 or explore more about the SBA programs for Veterans here.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.