How to Get Certified as a Veteran-Owned Business
Acknowledging your status as a veteran could give you an advantage in the business world. Here's how.
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Interested in attracting new clients to your small business? Government contracting can open up millions of dollars worth of new business, but securing a contract isn't at all easy. Thankfully, if you've served in the military, and especially if you've incurred a service-related disability, you are often eligible for a certification that will put you squarely in line to receive up to 3 percent of prime federal government contracts and subcontracts, according to The Veterans Entrepreneurship and Small Business Development Act of 1999.
However, registering as a veteran-owned or service-disabled veteran-owned business is not as cut and dry as, say, registering as a woman-owned business or a minority-owned business. Aside from the Veterans Affairs office, there's no single government body or third-party operation you can turn to to receive your certification.
For that reason, many people forgo certification altogether unless their goal is to compete for government contracts. Even if you're not interested in working with the government, research by the National Veteran Owned Business Association (NaVOBA) shows that 70 percent of Americans would prefer to do business with a veteran-owned business than one that is not veteran-owned. Advertising your "veteran-owned business" status on your storefront, signage, website, letter head, and at the bottom of e-mails may be all you need to attract new business. In many cases, such as doing business with local contractors, suppliers, and even large corporation, a formal certification isn't necessary.
This guide will help you determine if you need to get certified, and if the answer is yes, where and how to register to become a veteran-owned or service-disabled veteran-owned business.
How to Get Certified as a Veteran-Owned Business: Do You Qualify?
The qualifications for becoming a veteran-owned or service-disabled veteran-owned business are very specific. You must own at least 51 percent of the company applying for certification. But it's not enough to be an owner just in name. You must also be in control of management and day-to-day operations within the business.
To prove that you are a veteran, you will need to have a Department of Defense Form 214 (DD 214), which is issued upon a military service member's retirement, separation or discharge from active-duty military. If you intend to apply for service-disabled status, you will also need a letter from the United States Department of Veteran Affairs stating that you are, indeed, service-disabled. Contact the VA's benefits office if you have lost or misplaced this disability status letter.
Of course, there's more to consider than whether or not you're actually an owner, and a veteran or service-disabled. Chris Hale, president of NaVOBA, says that not everyone is equipped to go after such large government contracts, because of size and operation restrictions.
"If you have something the government purchases, and if you're willing to invest heavily in a sales and marketing team to go after government business, by all means do so," he says, "but those two things are absolute necessities. Don't think, 'I'm just going to register on this site and all of a sudden stuff's just going to start pouring in.' The opposite of that is true."
On the other hand, if pursuing government contracts is not your goal, you may not need to get certified through the VA's office. "There are already three million veteran-owned businesses in the country," Hale says, pointing out that many of them are not certified through the VA. "The reality for the majority is just realizing that if I'm a veteran and a business owner those two things put together actually mean something."
Many large corporations include veteran-owned businesses in their supplier diversity programs and have their own certification process. The majority will accept your DD 214 as proof and not require any further registration through the VA's office.
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How to Get Certified as a Veteran-Owned Business: Registering with the VA
If you qualify and think that your company (and your pocketbook) will be able to sustain the expense of a marketing campaign targeting the government, you may want to consider registering with the VA. It is the only government agency with a formal verification process, adding an additional element of legitimacy to your registration.
The VA has a number of contracts set aside that fall first to service-disabled veterans and then to veterans. This program is especially appealing to veterans who have not achieved service-disabled status, because the federal government does not provide set asides to veteran-owned businesses, rather it sets goals that may or may not get met.
Service-disabled veteran Carol Craig, founder and CEO of engineering and technical services company Craig Technologies says, "If I weren't service-disabled, I'd definitely go through the VA, because you'll have a better chance of receiving a contract."
The first step of getting certified through the VA is registering with the VetBiz Registry, which is a veteran business database. The Center for Veterans Enterprise provides the registry as well as step-by-step guidelines on applying for certification with the VA. Mentioned earlier, you'll also be required to have the DD 214 form and possibly a letter from the United States Department of Veteran Affairs stating that you are service-disabled, if applicable.
Once the VA begins the verification process, Forman says they will evaluate partnership agreements, corporate charters, organizational charters, board of directors, mission statements, inventory, service providers, bank statements and tax information, so it's a good idea to have these records organized and prepared. A select few businesses will also be subject to on-site visits, both announced and unannounced, during the verification process.
"To get the seal, you need to go through the verification process and meet all the tests," Forman says.
James Mingey, president and CEO of the Veterans Corporation, recommends registering with the VA even if you're not doing business with the federal government. "If you go through the VA it can help you marketing-wise. A lot of regional governments and corporations will do business with you based on that certification."
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How to Get Certified as a Veteran-Owned Business: Registering with the Central Contractor Registration
Even if you've registered with the VA, you must also register with the Central Contractor Registration (CCR) to be eligible for any government contracts. The CCR's site has a complete list of guidelines explaining what you'll need to register. The links below will direct you to all the information you'll need to apply:
• A Tax Identification Number (TIN) is either an Employer Identification Number or a Social Security Number. If you receive a new EIN number, it may take two to five weeks to become active, meaning you will have to wait to register with the CCR. To obtain an EIN, click here.
• The North American Industry Classification System (NAICS) is the standard by which the government classifies businesses. To figure out what NAICS code your business operates under, click here.
• A DUNS number is a nine-digit identification number for your business. To get one, click here.
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