As a veteran entrepreneur, I know how confusing the alphabet soup of certifications can be. Many fellow vets ask about the differences between Service-Disabled Veteran-Owned Businesses (SDVOB) and Veteran-Owned Businesses (VOB). In this post, I’ll break down what each designation means and how they differ. We’ll cover definitions, eligibility, certification programs, benefits, legal distinctions, and key tips – all from a veteran’s perspective. Whether you’re a service-disabled vet or simply a veteran business owner, this guide will help you navigate SDVOB vs VOB and leverage programs for your business.
Service-Disabled Veteran-Owned Business (SDVOB) is a subset of VOB for veterans with service-connected disabilities. An SDVOB must be at least 51% owned and controlled by one or more service-disabled veterans. Service-disabled means the veteran has a disability rating from the VA for an injury or illness linked to their military service. There is no minimum VA disability rating required for federal SDVOB status – even a 0% rating (a documented service-connected disability with no compensation) counts. However, some state programs do set a minimum (often 10%+). The key is that the veteran owner has a VA letter verifying a service-connected disability.
Both SDVOB and VOB require that the veteran owner not only own but also control the business. This means the vet should manage daily operations and long-term decision-making. Simply being a figurehead owner won’t qualify – you must be truly in charge. If multiple vets own the company, their combined ownership must be at least 51%. If a service-disabled veteran is permanently and totally disabled and unable to run the business, a spouse or permanent caregiver can step in to manage it and still maintain SDVOB status in certain cases.
In short: Every SDVOB is by definition a VOB, but not every VOB is an SDVOB. The presence of a service-connected disability is the defining difference in eligibility.
Apply through: SBA VetCert Portal
Closing Note: Whether you qualify as a VOB or SDVOB, these programs exist to help veterans build successful businesses. By leveraging your certification, you honor your service and unlock growth for your future. Serve proudly in business just as you did in uniform.
What Are SDVOB and VOB? Definitions & Eligibility Criteria
Veteran-Owned Business (VOB) generally refers to any business that is at least 51% owned and controlled by one or more veterans. In practice, the term “VOB” often overlaps with VOSB (Veteran-Owned Small Business) – the designation used in federal programs. A veteran is defined in U.S. law as someone who served on active duty in the military and was discharged under conditions other than dishonorable. In other words, if you’re a vet who owns majority stake in your business and run day-to-day operations, you have a VOB.Service-Disabled Veteran-Owned Business (SDVOB) is a subset of VOB for veterans with service-connected disabilities. An SDVOB must be at least 51% owned and controlled by one or more service-disabled veterans. Service-disabled means the veteran has a disability rating from the VA for an injury or illness linked to their military service. There is no minimum VA disability rating required for federal SDVOB status – even a 0% rating (a documented service-connected disability with no compensation) counts. However, some state programs do set a minimum (often 10%+). The key is that the veteran owner has a VA letter verifying a service-connected disability.
Both SDVOB and VOB require that the veteran owner not only own but also control the business. This means the vet should manage daily operations and long-term decision-making. Simply being a figurehead owner won’t qualify – you must be truly in charge. If multiple vets own the company, their combined ownership must be at least 51%. If a service-disabled veteran is permanently and totally disabled and unable to run the business, a spouse or permanent caregiver can step in to manage it and still maintain SDVOB status in certain cases.
Eligibility Comparison: SDVOB vs VOB
To summarize the basic eligibility differences, here’s a quick comparison:| Criteria | VOB (Veteran-Owned Business) | SDVOB (Service-Disabled VOB) |
|---|---|---|
| Veteran Status | Owned by veteran(s). Disability not required. | Owned by service-disabled veteran(s). |
| Ownership & Control | ≥51% owned and controlled by veteran(s). | ≥51% owned and controlled by service-disabled veteran(s). |
| Disability Requirement | None. Any qualified veteran can qualify. | Yes. Must have VA-rated service-connected disability. |
| Business Size | Must qualify as a small business (per SBA standards). | Must qualify as a small business. |
| Certification Name (Federal) | Often referred to as VOSB. | Typically referred to as SDVOSB. |
| Key Documents | DD214 (proof of service). | DD214 + VA Disability Award Letter. |
Federal and State Certification Programs
Federal Certification (SBA VetCert)
As of 2023, the U.S. Small Business Administration (SBA) operates the Veteran Small Business Certification (VetCert) program for both VOSB and SDVOSB. This program was transferred from the VA’s old Center for Verification and Evaluation (CVE) to the SBA. Under SBA VetCert, a veteran-owned firm can apply once and, if approved, be officially certified. The certification is free and lasts for 3 years before requiring renewal.Apply through: SBA VetCert Portal
State Certification Programs
Many states have their own SDVOB/VOB programs with:- Contract set-aside goals (e.g. CA 3%, NY 6%)
- Preference points during procurement
- State-specific certification process (separate from federal)
- Residency requirements
Private Certifications
Programs like those from:- NaVOBA (National Veteran-Owned Business Association)
- NVBDC (National Veteran Business Development Council)
Benefits, Contracts, and Programs: What Each Gets You
Federal Contracting
| Program | SDVOB | VOB |
| Federal Set-Asides |  Yes |  No (except VA) |
| VA Contracts (Vets First) | Yes | Yes |
| Sole-Source Awards | Yes | No |
| Federal Goal | 5% of contracting spend | N/A |
State Contracts
- Most states prioritize SDVOB
- Some also include VOB (varies by state)
Private Sector
- Supplier Diversity in large corporations
- VBE/SDVBE certifications give access to opportunities
Other Perks
- SBA Loans: Fee waivers for veterans
- Surplus Property Access
- Boots to Business training
- Mentorship via SCORE, SBDCs, VBOCs
- Exclusive networking events
Legal Distinctions
- SDVOB is a recognized category in FAR
- VOB is recognized mainly by VA and states
- Misrepresentation penalties are severe (False Claims Act)
- Proper ownership & control must be documented
Tips for Certification
- Get your paperwork in order: DD214, disability letter, business docs
- Use free help: VBOCs, SBDCs, SCORE, SBA
- Align operating agreements: Ensure 51% vet ownership & control
- Market yourself: Register on SAM.gov, attend events, build network
- Renew on time: Certification lasts 3 years (federal)
Top Resources
- SBA VetCert
- VBOC Locator
- APEX Accelerators
- NaVOBA
- NVBDC
- StreetShares Foundation
- Boots to Business
Closing Note: Whether you qualify as a VOB or SDVOB, these programs exist to help veterans build successful businesses. By leveraging your certification, you honor your service and unlock growth for your future. Serve proudly in business just as you did in uniform.