As a Veteran, you’ve already demonstrated courage, commitment, and resilience in your service to the nation. Now, imagine translating those qualities into entrepreneurial success by starting or expanding your own business by tapping into government contracting opportunities. The Small Business Administration (SBA) offers certification programs for Veteran-Owned Small Businesses (VOSB) and Service-Disabled Veteran-Owned Small Businesses (SDVOSB), providing a pathway to exclusive contracts and fostering economic growth.
You might ask, “why would I need a certification as a veteran owned business through the Small Business Administration?” Well, there are a few good reasons why this certification is a good idea for your business as a veteran. One, it allows you to compete for certain federal and/or state government contracts. It also will allow you to purchase government supply surplus items that can help you to continue to grow your business. And importantly, it underscores your brand as a veteran-owned or service-disabled veteran-owned business to your customers and your community.
In this guide, we’ll walk you through the step-by-step process to achieve VOSB or SDVOSB certification.
Step 1: Verify Your Eligibility
Before diving into the certification process, ensure you meet the eligibility criteria. For VOSB, veterans must own and control at least 51% of the business. For SDVOSB, service-disabled veterans must meet the same criteria. Confirm your eligibility and proceed with confidence.
Step 2: Gather Your Documents
Collect the necessary documentation, which typically includes:
DD Form 214, Certificate of Release or Discharge from Active Duty.
VA disability letter (for SDVOSB).
Corporate documents (articles of incorporation, operating agreements, etc.).
Business financial statements.
Business tax returns.
Ownership and control documentation.
Step 3: Create an SBA Account
Navigate to the Small Business Administration (SBA) website and create an account. This account will be your gateway to the online certification application. Ensure you provide accurate information during the account creation process.
Step 4: Complete the Online Application
Select the certification program (VOSB or SDVOSB) and complete the online application. Upload all required documents and double-check the accuracy of the information provided. This step is pivotal in moving forward with the certification process. You want to make sure there are no delays due to not providing all the required information.
Step 5: Obtain a D-U-N-S Number
If your business doesn’t have a Dun & Bradstreet (D&B) Data Universal Numbering System (D-U-N-S) number, obtain one. This unique identifier is essential for government contracts and will strengthen your application.
Step 6: Register on SAM.gov
Register your business on the System for Award Management (SAM) website. This no cost registration is a prerequisite for federal government contracting and complements your VOSB or SDVOSB certification. Importantly, this is a required registration to do business with the U.S. Government.
Step 7: Submit Your Application
Once your application is complete, submit it through the SBA’s online portal. This marks a crucial step toward unlocking exclusive contracting opportunities for your veteran-owned business.
Step 8: Await Verification and Approval
Patience is key as the SBA reviews your application. Be prepared for potential requests for additional information and respond promptly to expedite the certification process. So, please be sure to keep your eye on your emails from the SBA.
Step 9: Respond to Requests for Information
If the SBA requires additional information or clarification, respond promptly and efficiently. This responsiveness demonstrates your commitment to the certification process.
Step 10: Receive Your Certification
Upon approval, you’ll receive official certification as a VOSB or SDVOSB. This achievement opens doors to government contracts reserved only for veteran-owned businesses.
Step 11: Market Your Certification
Update your marketing materials, website, and government contracting databases to showcase your VOSB or SDVOSB status. This certification is a powerful tool in attracting both government and private-sector contracts.
For further support with this process, seek guidance from the SBA through your local Veterans Business Outreach Center (VBOC) Program here.
Conclusion
Becoming certified as a VOSB or SDVOSB is a strategic move that not only honors your military service but also positions your business for success in the competitive world of government contracting. Follow these steps diligently, stay informed, and embrace the opportunities that come with being a certified veteran-owned business. We here at EGBI wish you good luck on your journey to unlocking new horizons for your entrepreneurial venture!
Please do not hesitate to reach out to EGBI’s Business Coach and Veteran Services Coordinator Monica Perras at perras@egbi.org or call her directly 737-239-0221. A business coaching appointment is at no cost due to a contract with the City of Austin.
Starting a new business comes with its challenges, but if you’re a veteran in the state of Texas, there’s a unique opportunity to ease the burden. The Texas Veterans Commission Veteran Entrepreneur Program offers a Veteran Verification Letter (VVL), a powerful tool that not only recognizes your service but also provides tangible benefits. In this blog, we’ll walk you through the step-by-step process of obtaining a VVL and unlocking significant cost-saving advantages.
Eligibility Check
Before diving into the application process, ensure you meet the eligibility criteria for the Veteran Verification Letter. To qualify, you must have: – An Honorable/General Under Honorable US Military Discharge – 100% Veteran-Owned (can be more than one veteran owner) – A new entity formation between January 1, 2022, and December 31, 2025
2. Click on the “Connect with a Business Consultant” button to initiate the process.
3. Complete the three-part questionnaire provided by the Texas Veterans Commission.
Step 2: Information Gathering
Prepare the following documents before initiating contact with a Business Consultant: – DD214 – Member 4 or Service Copy 2: Ensure it shows discharge status. – VA Letter of Service Disability: Must include branch of service, dates of service, and discharge status. – NGB22 (Texas National Guard Only): For Texas National Guard members. – Verification of any name changes: Include relevant documents like Marriage Certificates, Divorce Decrees, etc.
Step 3: Contact with a Business Consultant
After completing the questionnaire, a Business Consultant from the Texas Veterans Commission will contact you directly. Be ready to share the gathered information and discuss your business plans.
Benefits of the Veteran Verification Letter.
Upon successful verification, you’ll receive a Veteran Verification Letter. This document holds significant advantages for your new business: -Waived $300 Registration Fee: Say goodbye to the initial registration fee with the Secretary of State. -Five Years of State Franchise Tax Exemption: Enjoy the first five years of your business without the burden of state franchise tax.
Conclusion Obtaining a Veteran Verification Letter through the Texas Veterans Commission can be a game-changer for your new business. Not only does it recognize your military service, but it also provides substantial financial benefits. Follow the steps outlined in this guide, and you’ll be on your way to unlocking opportunities that will make a meaningful difference in the early years of your entrepreneurial journey. This is a great first step towards many more to come.
Thank you for your service, and best of luck with your new venture!
Please do not hesitate to reach out to EGBI’s Business Coach and Veteran Services Coordinator Monica Perras at perras@egbi.org or call her directly 737-239-0221. A business coaching appointment is at no cost due to a contract with the City of Austin.
From company-paid health care coverage to onsite child care, research shows that family-friendly policies lead to higher employee attraction, retention, satisfaction, and productivity.
Are you curious to learn how you can make your company more attractive to working parents and increase your revenue at the same time?
The newly launched Best Place for Working Parents® Greater Austin initiative from Early Matters Greater Austin (EMGA) offers a free and confidential survey that you can complete online in under 5 minutes.
After completing the assessment, you will gain a real-time snapshot of how your business fares in relation to other local companies. Businesses that qualify for the designation will have an immediate opportunity to promote themselves as a designated Best Place for Working Parents®.
EGBI offers small business owners’ guidance for how to keep
your business afloat in the time of Covid-19. These tips are compiled from
various websites, conference calls, and conversations over the past two weeks
and are SUBJECT to CHANGE from day to day. These tips are not a substitute for
legal guidance and your own investigation. Use this guide to point you to things
you should be thinking about.
Governmental Health and Safety Orders
Federal covis-19 orders trump State Covid-19
orders. State orders trump local orders, but right now in Texas the governor is
allowing cities and counties to pass stronger orders than the state.
If you violate the orders, you
could be arrested and fined up to $1200 per offense.
The link to the current State of Texas current Covid-19 orders HERE.
Stay open and generate revenue if possible, based on your city/county public health response orders)
Use the assets of the company (checking, savings and investments)
Make a loan to the business from your personal assets
Existing line of credit with a financial institution. It is unlikely that you would be able to get a line of credit in the middle of a crisis. If you do have a line of credit, be prepared that the financial institution might cancel it during the crisis.
SBA disaster loan – currently – Apply directly with SBA. SBA will determine the loan amount. Must have business financial records and tax returns to prove your need. Loans may be used to pay fixed debts, payroll, accounts payable and other bills. The interest rate is 3.75% for small businesses without credit available elsewhere Businesses with credit available elsewhere are not eligible.
If you are declined an SBA loan, they will follow up with you to review your application. Don’t take NO the first time. Check out the Press Release.
You can start filling out the documents you will
need:
SBA Covid-19 disaster loans – proposed – as part
of the 3rd bill that congress is debating, part of the proposal is
that small businesses would apply for SBA Covid-19 disaster loans through
financial institutions; offering working capital to keep the business open and
staff in place even while there is no revenue; and potentially loan proceeds
for wages might be forgiven in an effort to keep people employed.
Other disaster loans as they become available
from cities and counties.
Unemployment compensation – Self-employed people
may apply if you have a loss of 50% of revenue or more as verified by financial
records and IRS tax records.
You have a couple of choices for lowering Expenses:
(use the same thinking for your personal expenses)
Insurance – pay your insurance: health
and business (if you remain open) Once you miss a payment, you are without
insurance.
State Sales Tax – CALL AND GET ON A
PAYMENT PLAN send them their money when its due.
Key People – You want to take care of
your people so that they will return to you after the crisis.
Employees: Read your Employee handbook.
These will tell you how your business will treat your employees for
termination, sick leave and vacation time.
Employees will qualify for unemployment compensation
if they have lost significant revenue from their job or have had to reduce
hours because of government orders. The waiting period for unemployment compensation
has been waived. APPLY early. They are very busy. (Employers can request a
waiver from an increase in unemployment insurance caused by employees filing
claims because of Covid-19)
Furlough (pay benefits but not wages for
employees you hope will return after the crisis) vs termination (end
employment). Your employees are the backbone of your business.
If you don’t have an employee handbook, at a
minimum write down your leave policies.
Loans – start talking to ALL your lenders
about deferring payments.
Have your account number ready.
GET THE PERSONS NAME, a physical address
and an email. After your conversation, send them an email recapping what was
agreed on. MAKE A PAPER TRAIL.
They might tell you that you can defer now but
will have to pay off in a few short months. You might be able to catch up
payments in a few months via an SBA loan (more about that later).
Foreclosures won’t happen immediately –
courts are closed to non-emergency actions; HUD, Fannie and Freddie (mortgage
buyers) have stated they will not foreclose or evict during the crisis.
Vendors – check with all to see what they
are willing to do. For instance, ATT has offered to defer phone bills under
certain situations.
Reduce expenses: save as much as you can
to be able to keep paying employees
Start preparing financial plans for 2 months, 4
months, and ramp up when this is over. (EGBI can help)
Families First Coronavirus Response Act (law passed last
week)
Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or childcare unavailability if the leave requirements would jeopardize the viability of the business as a going concern.
Employee must have worked one month to be eligible
Two Weeks (2) / Eighty (80) Hours paid sick leave ( for Coronavirus) at usual rate
Cannot force employee to use other accrued leave first
Eligible employees may take up to twelve (12) weeks of job-protected FMLA leave where they are unable to work or telework because of a need for leave to care for a son or daughter if their (primary or secondary) school or place of care has been closed, or their child-care provider is unavailable, because of a public health emergency declared with respect to COVID-19- coronavirus.
The first 10 days of FMLA leave is unpaid, but employees may elect to substitute accrued vacation, personal leave, or sick leave for the unpaid leave under this section.
An employer may not require such substitution.
After the 10 days are exhausted, employers must pay the employee not less than two-thirds of the employee’s regular rate of pay for each day of FMLA leave taken thereafter, capped at $200 per day, and $10,000 in the aggregate.
Insurance: if your business is moving to a delivery service using employee vehicles, make sure they have auto insurance and make sure they call their insurance company and let them know they will be using their vehicle in part for business.
Employer insurance: ask your insurance for a “drop down policy” to also cover the business for any auto insurance issues.
Alcohol – Do NOT allow any employee or contractor to transport alcohol until you confirm transport of alcohol is OK
Succession planning – who can keep your business
going if you were to get sick or worse.
Speak to an attorney about your LLC operating
agreements and your estate planning documents and who can operate your business
when you are not available
Ask about a Special power of attorney vs durable
power of attorney
IRS
Filing and due date for federal taxes was extended to July 15.
Lastly, small business owners can schedule telephone or Zoom coaching sessions with EGBI staff. For current clients, coaching is free during the crisis. Please visit our website for staff contact information and updated information at www.egbi.org.
