WASHINGTON — Today, the U.S. Small Business Administration (SBA) announced that the agency has cleared the Biden-era backlog of Veteran Small Business Certification (VetCert) applications, which accumulated after the prior Administration diverted all resources away from VetCert to increase certification approvals for “socially disadvantaged” small businesses within the 8(a) Business Development Program. As of today, SBA has brought its pending total applications down from more than 2,700 to zero actionable cases, ensuring that America’s veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs) can compete for federal contracts. Amid the shutdown, VetCert remains fully operational and will continue to process new and pending applications.
“Veterans have sacrificed enormously to serve our country, and they deserve full support when they return home to start and grow their businesses,” said SBA Administrator Kelly Loeffler. “Under President Trump’s leadership, SBA has restored all funding and staffing for VetCert – and cleared the backlog of applications for veteran entrepreneurs who were put at the back of the line when the Biden Administration deprioritized veterans in favor of a DEI agenda. With the 2,700 case backlog cleared, veteran job creators finally have the chance to compete for contracts in the federal marketplace – and to access the opportunities they deserve.”
The SBA is responsible for certifying small businesses for participation in federal contracting programs, which allows them to compete for set-aside and sole-source contracts. The agency’s largest contracting program is the 8(a) Business Development Program, designed to certify “socially disadvantaged” businesses. Congress subsequently established VetCert to provide a dedicated onramp for veteran entrepreneurs seeking to participate in federal contracting. Through this separate program, the SBA certifies veteran-owned and service-disabled veteran-owned small businesses for contracting authority.
In January 2024, the Biden Administration took drastic action to increase the percentage of federal contracts that were required to be awarded to “socially disadvantaged” businesses, shifting the federal goal from 5% to 15% – an act that unfairly tipped the scales against any small businesses that did not qualify, including veteran-owned small businesses.
To meet these new DEI contracting goals, the Biden SBA shifted VetCert staff and funding to the 8(a) Program, leaving veterans without any dedicated support. Predictably, this diversion of VetCert’s resources diminished veterans’ opportunities for federal contracting approval. Application processing timelines, which averaged 30 days when the program began, skyrocketed to 81 days by the end of 2024.
In response, Administrator Loeffler took immediate action on Day One of her tenure to return the “socially disadvantaged” contracting goal back to its statutory level of 5%. As of today, SBA has also restored full staffing and funding for the VetCert Program, cleared the backlog of all pending applications, and reduced application processing times to an average of just 12 days.
