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Discounts for Veterans and Minority-Owned Firms in SAM

Veteran-owned and minority-owned businesses gain advantages through SAM registration but don’t receive direct discounts. Instead, these firms access competitive set-asides and sole-source contracts when certified. SDVOSBs require 51% ownership by service-disabled veterans, while MBEs need 51% minority ownership. Through certification, businesses access federal contracting goals (5% for SDVOSBs) and corporate diversity programs. Changes to veteran certification requirements take effect December 22, 2024. The certification process offers significant financial opportunities beyond standard registration benefits.

SBA Set-Asides and Sole-Source Contracts for Veterans

veteran contract opportunities available

Several federal contracting mechanisms provide significant advantages to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).

These SDVOSB benefits include access to competitive set-asides and sole-source awards, helping these businesses secure federal contracts.

Contract eligibility requirements mandate that SDVOSBs must be 51% owned by service-disabled veterans and meet specific size standards.

To qualify as an SDVOSB, businesses must have 51% service-disabled veteran ownership and fall within designated size parameters.

The program offers two primary pathways: competitive set-asides, which represented 26% of SDVOSB contracts in FY2022, and sole-source awards, accounting for just 4% of contracts that year.

Federal agencies have exceeded the 5% annual contracting goal, awarding $31.9 billion (5.07% of total contracts) to SDVOSBs in FY2024.

Significantly, 55% of SDVOSB contracts were awarded through full open competition, demonstrating these businesses’ competitiveness in the federal marketplace.

Businesses seeking these veteran contract opportunities must complete their SAM registration at no cost through the official government website, though third-party assistance services may charge fees.

Registration and Certification Pathways for Minority Business Enterprises

minority business enterprise certification

Minority Business Enterprises (MBEs) seeking certification follow distinct pathways that differ considerably from veteran-owned business requirements. Unlike federal contractor registrations, the MBE certification process does not require SAM registration, focusing instead on verifying minority ownership and control.

To qualify, businesses must demonstrate at least 51% ownership by minority groups through specific documentation including articles of incorporation, financial statements, and proof of operational control. Eligible groups include Native Americans, Black Americans, Asian Pacific individuals, Subcontinent Asians, and Hispanic Americans with origins in Spanish or Portuguese cultures. Applications are submitted through regional NMSDC offices with fees starting at $350 for smaller businesses.

The certification timeline typically extends up to 90 days, during which businesses undergo thorough verification. Unlike SAM registration, which offers fee waivers for qualifying nonprofits seeking federal grants, MBE certification fees are generally not waivable. The certification plays a crucial role in social equality and economic inclusion across diverse business sectors.

Once certified, MBEs gain access to set-aside contracts, corporate diversity programs, and technical assistance resources that support economic empowerment and market recognition—creating tangible benefits for both the business and surrounding communities.

Upcoming Changes to Veteran Business Certification Requirements

mandatory sba certification begins

A significant transformation in veteran business certification begins December 22, 2024, when the Small Business Administration (SBA) becomes the mandatory certification authority for all veteran-owned small businesses seeking federal contracting opportunities.

Certification Timeline

The shift includes a grace period allowing self-certification until the December deadline for subcontracting purposes.

Businesses can still self-certify for subcontracting opportunities until the December 2024 transition deadline.

Businesses with pending applications will maintain eligibility until SBA makes a determination.

Eligibility Criteria

Core requirements remain consistent, including 51% veteran ownership.

Service-disabled veterans must provide VA disability documentation for SDVOSB status.

The MySBA Certifications portal replaces legacy systems for applications, while permanently disabled veterans may delegate management to spouses or caregivers.

Businesses should prepare now, as this certification will be essential for accessing set-aside contracts and participating in the VA’s Vets First program.

Many veteran-owned businesses find that third-party SAM services provide valuable assistance with navigating the complex registration and certification requirements.

Frequently Asked Questions

Does SAM.Gov Offer Fee Waivers for Veteran Business Registration?

SAM.gov does not offer fee waivers for veteran business registration because the registration process itself is completely free for all entities.

No special fee waiver eligibility exists since there are no fees to waive. Veterans must still complete the standard SAM.gov registration steps, including obtaining a UEI number and providing business information.

While SAM.gov registration is free, separate federal certification programs for veteran-owned businesses have their own requirements and processes.

Can Tribal-Owned Businesses Qualify for Both Minority and Veteran Preferences?

Tribal business eligibility allows for qualification under both categories, but through different systems.

Tribal-owned businesses operate under unique legal frameworks due to sovereignty and treaty rights, not strictly as minority-owned enterprises.

Meanwhile, veteran preference criteria are based on military service status, regardless of business ownership type.

Consequently, a tribal business with veteran ownership can access both sets of preferences through separate certification processes—tribal status through SBA 8(a) and veteran status through the VA’s VETS First Verification Program.

Are Military Spouses Eligible for the SAMe SAM.Gov Benefits?

Military spouse eligibility for SAM benefits differs from veterans’ eligibility.

Military spouses cannot access the same SAM.gov benefits as veterans, though they qualify for specific programs. These include non-competitive hiring paths for federal employment (while married to active duty members) and certain survivor benefits like DIC and SBP.

Documentation such as marriage certificates is required to verify status.

Spouse benefits often terminate upon remarriage, and most business-related SAM benefits target veterans rather than their spouses.

How Do International Veteran-Owned Businesses Navigate SAM.Gov Requirements?

International veteran-owned businesses face multiple challenges when maneuvering SAM.gov requirements.

These firms must comply with international regulations while pursuing business certification through the VA’s VetCert program. Key requirements include:

  1. Having U.S. veterans who meet VA verification standards
  2. Establishing a U.S. business presence
  3. Meeting the 51% veteran ownership threshold

Most effectively, international firms can explore subcontracting partnerships with U.S. prime contractors while working through the certification process.

What Financial Reporting Tools Does SAM.Gov Offer Veteran Businesses?

SAM.gov provides veteran-owned businesses with several financial insights tools, including FPDS integration for downloading contract award data and data extracts for analyzing financial trends by NAICS codes.

Veterans can access award history features to identify funding patterns and use hierarchical filters to organize financial data by agency.

The platform also offers reporting metrics through entity status checks and public award data for benchmarking against similar veteran-owned enterprises.

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