In the U.S., government agencies heavily support small-scale businesses. Veteran-owned business enterprises acquire a lot of financial support and training programs in the initial years of business. Since veteran-owned businesses are recognized as essential for the U.S. economy, the government acknowledges financial help.
Business enterprises must be registered and get veteran-owned business certifications by meeting the eligibility criteria. This creates an excellent opportunity for veteran-owned businesses owing to the unlimited number of support and benefits.
What is a veteran-owned business?
Veteran-owned businesses are notably small-scale business enterprises. Veteran-owned business enterprises have owned a minimum of 51% of the veterans that are citizens of the U.S. There are three categories of veteran-owned businesses – veteran-owned business enterprises, veteran-disability-owned business enterprises, and service-disabled veteran-owned business enterprises.
What is a veteran-owned business certification?
Veteran-owned business certification is a process to certify a small business enterprise owned by veterans. The certification status provided by the concerned authorities helps the business get lucrative benefits from the government regarding smooth business operations, government contracts, loans, training programs, and much more.
Benefits of veteran-owned business certification
There are several benefits of veteran-owned business enterprises registration and certifications. Below is the list of benefits acquired by veteran-owned businesses in the U.S.
Veterans Business Outreach Center Program
Veteran business development agencies sponsor this program in the U.S. It features all kinds of success stories along with mentorship and training programs. Eligible veterans can be a part of this program. The program ensures that the VBE gets proper skills and essential tools training.
The training and program develop the right kind of skill set. These programs help veteran-owned business owners work out things in a profitable manner. Acquiring the right set of skills creates business. This maximizes the chances of profit and success as getting certified as a veteran business owner in the U.S.
Also Read: How to Register as a Veteran-Owned Business
SBA Veterans Advantage 7(a) Loan
Veteran advantage loan works out well financially for veteran-owned businesses in the U.S. The loan is meant explicitly for veteran-owned businesses in the initial years of growth. The loan comes with a meager rate of interest. The principal amount of the loan depends upon the eligibility of an individual. There is no upfront guarantee necessary for this kind of loan. It helps veterans quickly access capital for business. The funds are entirely flexible and usable for any purpose in business. Businesses can use these funds for equipment, supply chain, or hiring employees. These funding options are available only for certified veteran-owned businesses.
Military Reservist Economic Injury Disaster Loan Program
Veteran-owned businesses have access to special loans. It is applicable only if the employees are on active duty. If veteran employees are essential to the business, access to such loans is easy. It is an option for businesses with certification to help them flourish initially.
VA Government Contracts
Government contracts are very lucrative for small businesses. The government gives some exceptional contracts to veteran-owned business enterprises. Such government projects are always set aside for small businesses. Supported by the U.S. Department of veteran enterprises, veteran-owned businesses get a lot of lucrative contracts. Veteran-owned businesses have special access to apply for these government contracts. Once the businesses are verified with certifications, the business can bid on contracts. This gives the leverage of competing in significantly less competition than competing with the masses.
Hivers and Strivers
The Hivers and Strivers Initiative is a program that helps veteran-owned businesses with business funds. The group invests around $1,000,000 in young veteran entrepreneurs. Any veteran-owned businesses in the U.S. get access to apply for the Hivers and Strivers program. This initiative funds small businesses in the U.S. that are certified as veteran-owned.
The Service-Disabled VSOB Program
Physically disabled and service-disabled veterans always get extra privileges. The government caters specifically to veterans with service and physical disabilities. Therefore, the service-disabled veteran-owned business program is high potential. Veterans with a disability can be on 3% of specific government contracts exclusive for them.
This makes the competition significantly less. Disabled veterans get full access to funds and advantages. There are qualifications and eligibility criteria for this – the service-disabled individual must attend to long-term business decisions and day-to-day business operations to be eligible. The disability should be related to service. Therefore, certified veteran-owned businesses with service-disabled veterans are privileged under this program.
Veteran Readiness and Employment Program
Veterans always get the potential access to employment programs. A program that makes sure that service-disabled veterans maintain employment after service has ended. The tracks for the program give access to various career and self-employment opportunities. The service-disabled veterans can start their businesses with the proper certification. The programs offer multiple resources to help them start their enterprise and small business enterprises.
Boots to Business Program
Veteran-owned businesses always get the perk of funding to boost business. After service has ended, veterans get the opportunity to start their businesses. The Boots to Business program helps veterans get training from various government agencies and communities to start their businesses. It is an entrepreneurial program available at different military installations throughout the world. However, it is centrally managed by the U.S. Department of Defense and benefits certified veteran-owned businesses.
Other Benefits of Veteran-Owned Businesses in the U.S.
- Franchising benefits are available for veterans who open or turn their businesses into a franchise.
- Exclusive use of best skillset in keeping the business running smoothly.
- Tax incentives for VOSBs.
- Veteran-focused workshops and training.
- A Veterans’ Small Business Week.
What is the eligibility for a veteran-owned business?
Veteran-owned business enterprises have many perks and advantages given by the U.S. government. However, to qualify for the certification and avail benefits of veteran-owned business certification, they need to meet specific eligibility criteria:
- At least 51% of the business enterprise should be owned by the veteran or more than one veteran together.
- The veterans should be directly participating in all the business’s decision-making and daily day-to-day operations.
- Veterans that are discharged or released after service are eligible.
- Service disability and physically disabled veterans can’t qualify for the certification of veteran-owned businesses.
- Veterans who served on active emergency duty with the Navy, military, Coast Guard, Marine, and Air Force can be registered under veteran-owned businesses with small enterprises.
- The businesses that get registered under veteran-owned businesses should be small-scale businesses.
- Veterans involved in the business enterprise must receive higher pay than other officials. It is possible to provide a formal document explaining the reason behind taking a lower salary for the benefit of the business organization.
- The veterans need to hold permanent official positions.
- The veterans involved in the business need to hold the highest rank, which is equivalent to an officer or manager rank.
What are the essential documents for veteran-owned business certification?
Veteran-owned business enterprises must complete their certification and registration to commence the operation. The U.S. government is rigorous regarding the documentation process. With this, we list some of the essential documents that are necessary for certification:
- Resume
- Driver’s license
- Articles of organization
- Previous tax returns
- Payroll information
- Department of Defense Form 214
Types of Veteran business owned Business Certification
The government of U.S. recognizes several veteran status certifications and agencies. Here, we list some of these veteran business-owned certifications.
Related Article: Why You Should Certify Your Diverse Business
Small Business Administration or Service Disabled Veteran Owned Small business
Service-connected disabled veterans and small business enterprises apply the small business administration and service-disabled veteran-owned business certifications. It is one of the most popular and common types of certification. It requires an application process to validate the certification status.
Veteran-Owned Small Business
There are specific eligibility criteria for this certification. Any small business enterprise meeting the criteria list can get certified.
Service Disabled Veteran Owned Small Business (SDVOSB)
The certification can be certified by the veteran itself on the System for Award Management (SAM) website. Only service-disabled veterans with small-scale businesses and a 51% share in business can apply.
Veteran Administration (VA) Certified Veteran Enterprise (CVE)
Veteran-owned small businesses can get certified under the veteran enterprise certification and administration. It is the first veteran program or training. The main goal is to conduct business with veteran administration.
Cocolevio’s 58Joralemon Certification for Veteran-Owned/Women-Owned/Minority-Owned Businesses
58Joralemon is one of the leading online platforms by Cocolevio that makes the certification process easy and seamless. The veteran-owned business certification process can be completed in just 15 minutes. The entire application and registration process is online.
Conclusion
Our small business guide talks about the various opportunities for veteran-owned business enterprises in the US. From funding opportunities to government contracts, small-scale businesses receive many privileges.
There is unlimited scope for funding as well as veteran-owned business training programs. On fulfilling the grounds of eligibility, veterans can get themselves certified. It helps in generating good revenue every year. Veteran-owned businesses can easily avoid mass competition in business with certifications. Government agencies set aside fixed business contracts every year. Thus, businesses should capitalize on the benefits of veteran-owned certification and leverage the opportunity to gain maximum revenue.
