Veterans Small Business Enhancement Act: Business Guide

Small Business
September 15, 2022

Veteran business owner wearing a military uniform.

Veterans are an entrepreneurial group, as evidenced by the fact that 45% of them choose to start their own businesses. According to the U.S. Small Business Administration, this is significantly higher than the general population. In fact, veterans are 2.4 million businesses strong in the United States.

However, starting a business is laborious and fiscally tough. Veterans have to contend with significant barriers, such as the high cost of purchasing equipment. The Veterans Small Business Enhancement Act is a law that was created to help veterans start and grow their businesses.

The Veterans Small Business Enhancement Act (VSBEA) allows veterans to use surplus property from the federal government to start or expand their ventures. These properties can include anything from office furniture to construction vehicles to technology and equipment. In addition, it provides veterans with training and counseling on getting their entrepreneurship ideas off the ground.

The VSBEA is a huge help to veterans who want to start their own businesses. With this veterans’ small business guide, they can get the information and resources they need to get started.

What Is the Veterans Small Business Enhancement Act of 2018?

The VSBEA is a law that was enacted in 2018 to help veterans start and grow their businesses. It was created in response to a study conducted by the U.S. Small Business Administration (SBA) which found that veteran-owned small businesses were at a disadvantage when competing for federal contracts. The VSBEA was designed to level the playing field and give veterans a better chance to compete for and win federal contracts.

Businesses qualify if they meet the following criteria:

  • Business owners have served on active duty with the Army, Air Force, Navy, Marine Corps, or Coast Guard and were released or discharged honorably
  • Veterans must own at least 51% of the business
  • One or more veterans have full control of business operations, along with the experience and knowledge necessary to manage the company.

Applying for a slot means preparing extension documentation and bracing yourself for a considerable wait time for approval.

What Does the Veterans Small Business Enhancement Act Offer Veterans?

The VSBEA offers veterans a number of benefits, including:

  • The ability to form joint ventures and teams with other veterans to bid on contracts as a single entity
  • A preference for veteran-owned small businesses when awarding federal contracts
  • Assistance in developing business plans and marketing strategies
  • Access to government contracting resources and information

What Veterans Should Be Aware Of

Veterans should be aware of the following when considering doing business with the federal government:

  • All veterans are eligible to participate in the VSBEA, regardless of discharge status.
  • There are no associated costs to receiving donated surplus property.
  • Veteran-owned small businesses must be registered with Veterans Affairs (VA) in order to receive the VSBEA preference.

FAQs About the Veterans Small Business Enhancement Act

Here are some frequently asked questions about VSBEA.

Are there associated costs with receiving donated surplus property?

No, there are no associated costs to receive donated surplus property. The VSBEA provides a preference for veteran-owned small businesses when awarding federal contracts, which gives veterans a better chance to compete for and win federal projects.

I am a veteran-owned small business. How do I get started with government contracting?

The first step is to register your business with the VA. You can find the application for veteran-owned small business certification on the VA’s website. Once you are registered, you can begin searching for contracting opportunities on the Federal Business Opportunities website. You can also find information on government contracting opportunities through your local Small Business Development Center (SBDC).

How do I register my business with the Veterans Affairs (VA)?

To register your business with the VA, you will need to submit a completed application for Veteran-Owned Small Business Certification. You can find the application on the VA’s website.

I am a veteran with a service-connected disability. Am I eligible to participate in the VSBEA?

Yes, all veterans are eligible to participate in the VSBEA, regardless of discharge status. The VSBEA provides a preference for veteran-owned small businesses when awarding federal contracts, which gives veterans a better chance to compete for and win federal contracts.

What resources are available to help me develop my business plan and marketing strategy?

There are a number of resources available to help veterans develop their business plans and marketing strategies. The VA’s SBDC network provides free counseling and training to veterans who want to start or grow their businesses. 

In addition, the SBA’s Office of Veterans Business Development offers a number of resources and programs specifically for veteran-owned businesses. You can find more information on the SBA’s website.

Apply for a Fixed Rate Business Loan With LendThrive

Now that you know more about the Veterans Small Business Enhancement Act, you may be ready to start or grow your veteran-owned business. LendThrive offers fixed rate business loans to veterans and military members who are looking to start or grow their businesses. Our loans are designed to help veterans and military members overcome the unique challenges they face when starting or growing a business.

You can apply online and get approved for as much as $150,000 in as fast as 24 hours. To learn more about our loans and find out if you qualify, apply today.

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