TL;DR: Per the SBA, federal certification through the VetCert program unlocks SDVOSB and VOSB set-aside contracts across the federal government. But most veteran business owners stop there. Every state in the country runs its own procurement system. Several have formal veteran business certification programs that unlock state contracts, vendor preferences, and local procurement set-asides most competitors never pursue. Here is how the full certification stack works.
Federal certification: the foundation
The SBA's Veteran Small Business Certification program (VetCert) is the entry point. Two designations matter for federal procurement:
- VOSB (Veteran-Owned Small Business): Unlocks sole-source and set-aside contracts at the Department of Veterans Affairs under the VA's Vets First program. Requires at least 51% veteran ownership and control.
- SDVOSB (Service-Disabled Veteran-Owned Small Business): Unlocks SDVOSB set-aside and sole-source contracts across the entire federal government. The federal contracting goal is 5% of all federal contract dollars annually. Same ownership threshold, plus VA recognition of service-connected disability.
As of January 1, 2023, the National Defense Authorization Act shifted certification from the VA to the SBA. The NDAA 2024 added another requirement: all firms competing for SDVOSB opportunities on subcontracting and goaling must be VetCert-certified. Self-certification is no longer sufficient for VA sole-source work.
To apply, you need: SAM.gov registration active, VA disability rating if applying as SDVOSB, and documentation establishing majority ownership and active management by the veteran. The process is online through certify.sba.gov. Application is free.
Federal certification is the highest-value credential. One SDVOSB set-aside contract with a federal agency can represent more revenue than years of private-sector business development. Get this first.
State certification: where most veteran business owners leave money behind
Every state government purchases goods and services. States collectively spend hundreds of billions annually on contracts. The federal VetCert designation has no jurisdiction here. To access state procurement preferences and set-asides, you need state-level certification.
Three states have mature, formal veteran business certification programs worth understanding in detail.
Texas VetHUB
Texas restructured its Historically Underused Business program in December 2025. The program now operates as the Veterans Heroes United in Business (VetHUB) certification, administered by the Texas Comptroller of Public Accounts. VetHUB focuses exclusively on service-disabled veteran-owned businesses.
Eligibility requires 51% ownership and active management by a service-disabled veteran with a service-connected disability of at least 20%. The business must be primarily based in Texas and meet SBA size standards.
Certification is free and valid for four years. Applications are submitted through the Comptroller's online VetHUB system. Once certified, the business appears in the VetHUB Directory, which state agencies search when identifying vendors for procurement needs.
State agencies set their own VetHUB participation goals by procurement category. Goals typically run around 3% across construction, professional services, other services, and commodity purchasing. For contracts over $100,000 where subcontracting is probable, agencies must require or consider VetHUB subcontracting plans.
Practical step: after VetHUB certification, register on the Centralized Master Bidders List (CMBL) at $70 annually. The CMBL is how Texas agencies issue solicitations. VetHUB status appears in your combined CMBL profile, signaling your certification to state buyers directly.
Florida Certified Veteran Business Enterprise
Florida's Veteran Business Enterprise Opportunity Act, Chapter 295.187, establishes a vendor preference for certified veteran businesses in state procurement. Certification is administered by the Florida Department of Management Services.
The preference applies when two or more bids are equal on price, quality, and service. The state agency must award to the certified Veteran Business Enterprise. Florida maintains a public electronic directory of all certified VBEs, searchable by state agencies and political subdivisions.
Florida's program is open to veterans and service-disabled veterans, broader than the Texas program's service-disability requirement. Certification documentation, eligibility, and the directory are managed through the Department of Management Services.
Political subdivisions across Florida are encouraged to extend the same preference. Counties, cities, school districts, and public universities can, and many do, give preference to Florida-certified VBEs in their own procurement. A single state-level certification can open access to local procurement across the entire state.
Georgia and the Atlanta market
Georgia does not maintain a separate state veteran business certification program. Instead, Georgia state agencies rely on the federal VetCert and SDVOSB designations for procurement preferences. For veteran-owned businesses in Atlanta and across Georgia, federal certification is the primary procurement tool.
That said, Georgia operates a Disadvantaged Business Enterprise (DBE) certification through the Department of Transportation that can apply to veteran-owned firms with qualifying economic characteristics. And Atlanta specifically has a strong veteran business network through ATLVets, the region's leading veteran entrepreneur organization, which connects certified veteran businesses with local procurement opportunities, corporate supply chain programs, and community contracting at a level that formal certification alone does not provide.
The full certification stack
Here is how a veteran business operating across multiple states should think about certification:
- Level 1: Federal: SBA VetCert (VOSB or SDVOSB). Required for federal contracting and VA-specific set-asides. Managed nationally. Apply first.
- Level 2: State: Each state where you actively pursue government contracts. Florida VBE, Texas VetHUB, and equivalent programs in other states. Each requires separate application. Each is free or low cost.
- Level 3: Local: Municipal and county vendor registries. Most require only state or federal certification documentation to qualify for local preferences. Cities and counties purchase constantly.
The compounding effect is real. A certified SDVOSB with Texas VetHUB status and Florida VBE certification is visible to federal, Texas state, and Florida state buyers simultaneously. Three separate procurement channels, all active from the same underlying business credentials.
Common certification mistakes
The process is not complicated. But veteran business owners make the same errors repeatedly.
Letting SAM.gov expire. Federal VetCert requires active SAM.gov registration. SAM.gov registrations expire annually. An expired registration makes you invisible to federal contracting officers even if your VetCert is active. Set a calendar reminder for 60 days before renewal.
Not documenting daily operational control. VetCert and state programs require that the veteran actively controls day-to-day business operations. If a non-veteran partner handles operations and the veteran is a passive owner, you do not qualify. Structure the business before applying, not after.
Applying for SDVOSB without the VA rating. SDVOSB requires a VA service-connected disability rating. If you have a disability but have not filed for VA recognition, do that first. The rating takes time. Start that process well before you need the certification.
Stopping at federal. Most veteran business owners in non-defense industries focus exclusively on private sector growth and federal contracting. State and local procurement is often faster, less bureaucratic, and less contested. A business with $2 million in revenue built on state and municipal contracts is just as valuable as one built on federal work.
The bottom line
Federal VetCert is the most important credential. Get it, maintain it, and compete for federal set-aside contracts. Then stack state certification on top for every state where you operate. The federal government sets aside 5% of its contracting dollars for SDVOSBs. State governments have their own goals. Local governments follow. The full certification stack puts your business in front of buyers at every level of government simultaneously.
Service is a credential. So is certification. Use both.
For more on the VOSB versus SDVOSB distinction, see our guide to VOSB vs SDVOSB certification.
Zack Knight is a partner at Patriot Growth Capital and a U.S. Army Special Forces veteran. PGC specializes in acquiring and scaling veteran-led businesses in the lower middle market. PGC has no commercial relationship with any certification program or agency mentioned in this article.
