SBA Clears VetCert Backlog, Restoring Contracting Access for Veteran-Owned Manufacturers

In a major development for veteran entrepreneurs, the U.S. Small Business Administration (SBA) announced that it has fully cleared the nationwide backlog of Veteran Small Business Certification (VetCert) applications. The backlog of more than 2,700 cases had accumulated after staffing and resources were previously diverted away from the veteran certification program.

According to the SBA, all actionable VetCert applications have now been processed, bringing the pending total to zero and restoring timely access to federal contracting eligibility for veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs). The agency noted that VetCert operations remain fully functional despite the federal shutdown, and new applications will continue to be accepted and processed.

“Veterans Deserve Full Support”

SBA Administrator Kelly Loeffler emphasized that clearing the backlog was a top priority.

“Veterans have sacrificed enormously to serve our country, and they deserve full support when they return home to start and grow their businesses,” Loeffler said. “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 also announced that VetCert staffing and funding have been fully restored, and processing timelines (which had peaked at an 81-day average) have now been reduced to 12 days.

How the Backlog Happened

Congress established the VetCert program to ensure veteran-owned small businesses had a dedicated path into federal contracting. But in early 2024, a shift in federal contracting priorities increased the percentage of contracts required to be awarded to “socially disadvantaged” businesses from 5% to 15%. In order to meet those targets, VetCert personnel and budget were redirected toward the SBA’s 8(a) Business Development Program, leaving veteran-owned businesses without dedicated support.

As a result:

• VetCert processing slowed dramatically
• VOSBs and SDVOSBs faced extended approval delays
• Fewer veteran-owned firms were able to compete for federal opportunities

Upon taking office, Administrator Loeffler reversed the contracting target back to its statutory 5% level and pledged to rebuild the VetCert program. Today’s announcement marks the full restoration of that effort.

What This Means for Veteran-Owned Manufacturers

Clearing the backlog not only restores fairness in federal contracting but comes at a critical moment for manufacturing. Veteran-owned businesses represent a significant segment of U.S. industrial capacity—particularly in machining, fabrication, aerospace components, industrial services, and defense-related supply chains.

With processing timelines now averaging just 12 days, veteran entrepreneurs can once again pursue:

• Set-aside and sole-source federal contracts
• Defense production opportunities
• Supply chain partnerships with large primes
• State and local procurement programs that rely on SBA certification

This restored pathway is expected to expand competitive opportunities for thousands of veteran manufacturers and industrial suppliers.

How IndustryNet Supports Veteran Manufacturers

Today’s milestone dovetails with broader national efforts to strengthen domestic supply chains, including the SBA’s new onshoring portal, where IndustryNet is one of just three industrial marketplaces featured. Through this partnership, businesses using the SBA portal are directly connected to IndustryNet, the online industrial marketplace, featuring listings of 360,000+ U.S. manufacturers and suppliers.

For veteran-owned manufacturers, visibility matters more than ever.

On IndustryNet, companies can be found for free, and buyers can identify veteran-owned suppliers instantly using the platform’s Veteran-Owned filter, making it easier for procurement teams to source domestically and support veteran entrepreneurship.

As federal contracting opportunities accelerate and reshoring efforts expand, IndustryNet remains committed to helping veteran-owned, and all U.S. suppliers, connect with buyers, strengthen supply chains, and showcase their capabilities nationwide. Add or update your free MNI profile to get started.