4 Things You Must Know About SDVOSBS

SDVOSBs or service disabled veteran-owned small businesses are businesses that are owned and controlled by service-disabled veterans. These veterans have 51% control over the businesses and mostly run with the support of government contracts. Let us learn a few more true facts about these businesses

• Who controls SDVOSBs?

A veteran has the rights to exercise 51% authority unconditionally on the business and it’s a day to day activities. The government has SBA and VA regulations to manage these businesses in which the veterans must follow. According to the VA rules, the veteran must work full time to meet the unconditional control requirement. The regulations do not allow the authority of non-veteran owners over the company’s basic or advanced decisions. Due to this, many times the veterans do not get potential partners or investors.

• What are the benefits of having SDVOSB?

These businesses get preference in government contracts and tenders. According to the government of USA, the department of veteran affairs or VA must keep some work aside for these businesses. The government has a target to award at least 3% out of the prime contracts to these SDVOSBs annually.

• Can a business challenge the status of SDVOSB?

Yes, a business can challenge the award of a project to service disabled veteran-owned small businesses or a VOSB. But if the SDVOSB loses the challenge then he can lose the award as well. Even the SDVOSB has the right to challenge another contractor who wins a contract.

• How can you apply for SDVOSB certification?

A small business should apply for self-certification to get certified by the SAM database of the US Government for non-VA projects. For the VA projects, Verification and Evaluation is required by the VA’s Center. 

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