Vertalis Business Law Glossary
Veteran Businesses
VetCert
Also called: Veteran Small Business Certification · VOSB · SDVOSB.
By Tim Nichols
Modern Counsel for Growing Companies
In plain English
The SBA's Veteran Small Business Certification program for eligible VOSBs and SDVOSBs. Certification concerns federal program eligibility, including qualifying ownership and control, and is distinct from forming a veteran-owned company or receiving Texas benefits. Certification can support access to specified contracting opportunities but does not guarantee an award.
Types and key distinctions
Veteran-Owned Small Business
A small business owned and controlled by qualifying veterans under the relevant program, commonly abbreviated VOSB in federal contracting. SBA certification generally requires at least 51 percent qualifying ownership and control plus other conditions. Texas veteran-business benefits use separate eligibility rules, so the same label does not establish eligibility everywhere.
Service-Disabled Veteran-Owned Small Business
A small business meeting the applicable program's requirements for ownership and control by qualifying service-disabled veterans, commonly called an SDVOSB. Federal SBA certification generally requires at least 51 percent qualifying ownership and control, plus other eligibility conditions. The federal status is distinct from Texas veteran-business benefits.
Ownership and Control
Two related but distinct concepts: ownership concerns the economic or equity stake, while control concerns the ability to direct decisions. Voting provisions, management appointments, and veto rights can separate them. Certification programs may impose their own requirements for both, so meeting an ownership percentage may not be sufficient.