SBA Sets 10% Veteran Contracting Goal for FY27

The Small Business Administration raised the federal prime and subcontracting goal for veteran-owned small businesses from 5% to 10%.

Updated on Nov. 9, 2026 in Military Jobs

SBA Sets 10% Veteran Contracting Goal for FY27

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Should the federal government steer more contracts to veteran-owned small businesses?

The Small Business Administration set a fiscal year 2027 federal contracting goal of 10% for service-disabled veteran-owned small businesses, doubling the prior 5% target. The announcement came on the first day of Veterans Small Business Week.

Why it matters

The higher target is designed to direct more federal spending toward veteran entrepreneurs and to strengthen the industrial base. The federal government already exceeded the 5% goal in FY25, which the agency cites as evidence the expanded target is achievable.

The federal government awarded $32.5 billion in prime contracts to service-disabled veteran-owned small businesses in FY25, exceeding the 5% goal. The new FY27 target doubles that goal to 10%, but the source does not specify the dollar value it implies.

The players

Small Business Administration

The federal agency responsible for supporting small businesses and administering the Small Business Act's federal contracting goals.

The details

SBA works with federal agencies to set prime contracting and subcontracting goals for FY27, and progress is tracked through the annual Small Business Procurement Scorecard. Last year the agency cleared a backlog of more than 2,700 VetCert applications and approved over 18,000 veteran contracting certifications in FY26.

FY25: Federal agencies exceeded the 5% SDVOSB goal with $32.5 billion in prime awards.
FY26: SBA approved more than 18,000 veteran contracting certifications.
November 9, 2026: SBA announced the FY27 goals on the first day of Veterans Small Business Week.
FY27: The doubled 10% goals take effect for agencies.

Market Landscape

The Small Business Act requires annual federal contracting goals for small businesses, and the federal government has exceeded the 23% small business prime contracting target for eleven consecutive years. The new 10% veteran goal builds on that framework by setting a narrower, higher benchmark for service-disabled veteran-owned firms.

Veteran-owned small businesses seeking federal work may see more contracting opportunities as agencies work toward the doubled 10% goal in FY27. Owners can pursue VetCert certification, which SBA approved for over 18,000 businesses in FY26.

The takeaway

Veteran-owned small businesses should check their VetCert certification status, since certification is what makes them eligible for these federal set-asides. Agencies will be working toward a higher share of spending with these firms beginning in FY27.