VOSB (Veteran-Owned Small Business)
Small business at least 51% owned and controlled by veterans.
Full Definition
A Veteran-Owned Small Business (VOSB) is a small business that is at least 51 percent unconditionally and directly owned by one or more veterans who also control the management and daily business operations of the firm. Veterans must have received an honorable or general discharge to qualify. While VOSB does not have a dedicated federal set-aside program with the same statutory authority as the Service-Disabled Veteran-Owned Small Business (SDVOSB) program, veteran ownership is recognized and tracked in SAM.gov and the SBA's VetCert system. Some agencies maintain internal policies or evaluation preferences that favor veteran-owned businesses. The SBA's VetCert program, which launched in January 2023, now provides optional VOSB verification in addition to mandatory SDVOSB certification, giving verified VOSBs greater credibility when marketing to government and prime contractor customers.
Why It Matters
Although VOSB status does not provide access to mandatory set-aside contracts like SDVOSB certification does, it remains a meaningful competitive differentiator in federal contracting. Many agencies and large prime contractors actively seek veteran-owned businesses for subcontracting opportunities to demonstrate commitment to veteran employment and entrepreneurship in their corporate responsibility programs. If you are a veteran with any service-connected disability rating, even zero percent, you should apply for SDVOSB certification through VetCert because it provides significantly stronger benefits including sole-source authority and set-aside eligibility. VOSBs without a disability rating should still register their veteran ownership in SAM.gov and consider obtaining VetCert verification to strengthen their credentials when competing for contracts where veteran status is an evaluation factor or source selection consideration.
Example
An Army veteran who served as a logistics officer starts a supply chain management company and registers as VOSB in SAM.gov with VetCert verification. While competing for a DoD freight consolidation contract worth $5 million under full and open competition, the solicitation includes a past performance subfactor that considers socioeconomic participation. The firm highlights their verified VOSB status and veteran leadership team in their proposal. A large defense prime also reaches out through the VetCert database to include the firm as a subcontractor on a $40 million logistics IDIQ, fulfilling their subcontracting plan goals for veteran-owned businesses.
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