SDVOSB Start-Ups Continue to Face Obstacles to CVE Verification

Several years ago, we argued that VA’s rule, requiring a veteran to devote herself full time to an SDVOSB during normal working hours, unnecessarily handicapped SDVOSB start-ups seeking CVE verification. This same requirement–though now in a slightly different form–continues to impede new businesses from obtaining verification, a key credential for many SDVOSBs. Beyond that, CVE’s application of the managerial experience requirement also poses a potential hurdle for incipient SDVOSBs.

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OHA: Owners Did Not Have Enough Managerial Experience to Qualify Concern as a WOSB

SBA’s socio-economic set-aside programs mandate compliance with multiple control requirements. An important one stipulates that a woman owner of a WOSB (or a veteran for a SDVOSB or a disadvantaged owner for an 8(a) business) must have the “managerial experience of the extent and complexity to run the concern.”

But what, exactly, does this requirement entail? A recent OHA case provides some important guidance.

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