The SBA Just Doubled Its Veteran Contracting Goal to 10%. Here's What That Means for Small Businesses

On November 9, 2026, the first day of National Veterans Small Business Week, the U.S. Small Business Administration announced new federal contracting goals for fiscal year 2027. The one getting attention: the goal for veteran-owned and service-disabled veteran-owned small businesses (SDVOSBs) goes from 5% to 10%, for both prime contracts and subcontracting.

The short version: the target went up, it applies to agencies, and it does not guarantee a contract to any single business. To count toward it, a firm must be SBA VetCert certified.

I'm a veteran-owned business myself, so I read the release closely. This post covers what it says, what it doesn't say, and what a small business can do about it. Everything below comes from the SBA's news release unless I link something else.

What the SBA Announced

The SBA set its FY2027 small business contracting goals. For veteran-owned and SDVOSB firms, the goal is now 10% of prime contract dollars and 10% of subcontracting dollars. It was 5%.

A few numbers from the release, for context:

• In FY2025, the federal government beat the 5% SDVOSB goal, with $32.5 billion in prime contracts awarded to service-disabled veteran-owned small businesses.
• The SBA cleared a backlog of more than 2,700 veteran certification (VetCert) applications in 2025.
• In FY2026, it approved over 18,000 contracting certifications for veteran-owned small businesses.

Other FY2027 goals stay where they were: 5% for small disadvantaged businesses and women-owned small businesses, and 3% for HUBZone firms.

What a Goal Is, and What It Isn't

A contracting goal is a target for how federal dollars get spread around. It is not a set-aside, and it doesn't promise any one business a contract. Agencies are measured against these goals on the SBA's annual small business scorecard, which gives them a reason to look for qualified veteran-owned firms. That is useful. It is not the same as work landing in your inbox.

The release also doesn't give a date beyond "fiscal year 2027," and it doesn't say how individual agencies will change what they buy. Anyone telling you a specific dollar amount is now "earmarked" for your business is going past what the SBA published.

Who Counts Toward the Goal

Counting toward the veteran goals takes more than owning the business. According to the SBA's veteran contracting programs page, a firm needs to:

• be certified through the SBA's VetCert program, which took over veteran certification from the Department of Veterans Affairs in 2023
• be at least 51% owned and controlled by one or more veterans (and for SDVOSBs, owners rated service-disabled by the VA)
• meet the small business size standard for the NAICS codes in its SAM.gov profile

If you're a veteran who owns a business and you've never done this paperwork, the doubled goal is a good reason to start.

What to Do Now

You don't need to chase every federal solicitation. A reasonable first pass looks like this:

1. Register in SAM.gov. You can't be awarded federal contracts without an active registration. It's free, and it takes longer than you'd expect, so start early.
2. Check your eligibility for VetCert. Read the ownership and control rules, then apply at certifications.sba.gov if you qualify.
3. Pick your NAICS codes with care. They decide which opportunities you see and which size standard applies.
4. Write a one-page capability statement. Who you are, what you do, your identifiers, and your past work, in a form a contracting officer can scan in a minute.
5. Look at subcontracting too. The goal covers subcontracting dollars as well, and a prime contractor with a 10% target has a reason to find you.
6. Don't forget state work. California has its own veteran program. I wrote about finding certified small businesses and DVBEs on Cal eProcure from the buyer's side.

Common Questions

What is the SBA's new veteran contracting goal? For fiscal year 2027, 10% of federal prime contract dollars and 10% of subcontracting dollars for veteran-owned and service-disabled veteran-owned small businesses, up from 5%.

Does the 10% goal guarantee my business a contract? No. It is a target agencies are measured against on the SBA's scorecard. You still have to be registered, certified, and competitive.

Do I need VetCert to count toward the goal? Yes. Firms must be certified through the SBA's VetCert program to count, per the SBA's veteran contracting programs page.

Does California's DVBE certification count federally? No. It is a state certification and counts toward California programs.

Where Alectronic Solutions Stands

Here is my status, so you know what I'm claiming and what I'm not. Alectronic Solutions is owned by a service-disabled U.S. Army veteran. It is a certified California Small Business (Micro) and a certified California Disabled Veteran Business Enterprise (DVBE), and it has an active SAM.gov registration. I don't hold SBA VetCert certification as an SDVOSB today, so this announcement doesn't change my federal status on its own. The details and identifiers are on the government page.

I build and maintain websites for small businesses and public-sector buyers. If you're a veteran-owned business getting ready to go after contracts, a clear website that backs up your capability statement is part of looking ready. If you'd like to talk through that, send me a note.