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What are the Qualifications for a SDVOSB (Service Disabled Veteran Owned Small Business)?
Overview of SDVOSB
SDVOSB stands for Service-Disabled Veteran-Owned Small Business. Executive Order 13360 (October 2004) was designed to provide opportunities for SDVOSBs to increase their federal contracting and subcontracting participation. The rationale for Executive Order 13360 is for America to honor the service rendered by service-disabled veterans by setting aside a minimum of “3% to prime contracting and 3% to subcontracting for Service-Disabled Veteran-Owned Small Businesses in DoD Acquisitions.” Source.
Here’s the simplified version of what qualifies as an SDVOSB:
A business owned at least 51% by a disabled (no minimum: 0-100% disability) veteran (honorably discharged).
I simplified the SDVOSB qualifications, because I found the DoD documents to be somewhat convoluted. The information is there, but you have to piece it together yourself.
- The DoD Office of Small Business Programs Frequently Asked Questions are very well laid out and easy to understand.
- The US General Services Administration site offers a short synopsis of the Service-Disabled Veteran-Owned Small Business Initiative as well as an explanation of the 21 Gun Salute initiative.
The DoD Office of Small Business Program's Excellent guide to DoD Contracting Opportunities. This is very simple 10 step guide that explains everything you need to know to start doing business with the government.
The SBA’s office of Veterans Business Development has some great information here, including links to the Patriot Express Pilot Loan program.
Here is an In-depth Look at SDVOSB Qualifications
A business that is at least 51% owned by an individual that is considered a Service-Disabled Veteran.
A veteran is defined as "a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable." Source
“Active military, naval, or air service” is defined as the following:
(A) active duty;
(B) any period of active duty for training during which the individual concerned was disabled or died from a disease or injury incurred or aggravated in line of duty; and
(C) any period of inactive duty training during which the individual concerned was disabled or died— (i) from an injury incurred or aggravated in line of duty; or (ii) from an acute myocardial infarction, a cardiac arrest, or a cerebrovascular accident occurring during such training. Source
Service-connected disabled is synonymous with service-disabled. I found these two terms to be used interchangeably in my research. Service connected means “with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated, in line of duty in the active military, naval, or air service.” Source