The SBA has created the Veterans Certification Program at 13 CFR 128, which includes consolidating existing regulations at 13 CFR 125 with the VA’s CVE verification guidelines at 38 CFR 74. The SBA will take over responsibility for all VOSB and SDVOSB certifications on January 1, 2023. Once a SDVOSB is certified by the SBA, that certification has a term of three years. Companies certified by the VA prior to January 1, 2023, will be deemed eligible by SBA for the remainder of their 3-year term.
There will be a one-year grace period for SDVOSBs to file an application for certification with SBA and maintain eligibility. With the exception of the grace period for SDVOSBs, after January 1, 2023, VOSBs and SDVOSBs will need to obtain the SBA’s certification to be eligible to receive sole-source or set-aside contracts for VOSBs or SDVOSBs. The SBA’s rule does not prohibit SDVOSBCs from self-certifying for subcontracts. That issue will be addressed in subsequent SBA rulemaking.
These rules for veteran-owned companies include ownership and control rules for certification that are similar to the rules for companies in the 8(a) and Women-Owned Small Business (WOSB) programs. SBA is also granting reciprocity to 8(a) and WOSB companies that are owned and controlled by veterans or service-disabled veterans. The SBA is providing an expedited process for 8(a) and WOSB companies applying for SDVOSB or VOSB status.
This final rule is effective on January 1, 2023.