Disabled veterans who own businesses in Texas have access to one of the strongest sets of procurement preferences, certification programs, and support resources available to any group of business owners. Federal, state, and local programs provide layered advantages that can open significant contracting opportunities and reduce business costs.
This guide covers the specific programs available to service-disabled veteran-owned businesses in Texas, how to stack certifications for maximum benefit, and practical steps for getting started.
Federal Programs for Service-Disabled Veterans
SBA SDVOSB Certification
The SBA now administers the Service-Disabled Veteran-Owned Small Business (SDVOSB) certification program. Previously managed by the VA for VA contracts only, the program has expanded to cover all federal agencies. Key benefits include:
- Sole-source contracts: Federal agencies can award sole-source contracts up to $4 million ($7 million for manufacturing) to certified SDVOSBs.
- Set-aside contracts: Federal agencies can set aside contracts exclusively for SDVOSBs when there are at least two capable SDVOSB firms.
- Evaluation preference: SDVOSB status can serve as an evaluation factor in competitive procurements.
- 3% governmentwide goal: The federal government has a 3% goal for contracting with SDVOSBs.
VA Veterans First Contracting
The VA maintains a separate "Veterans First" contracting program that gives priority to verified SDVOSBs and VOSBs for VA contracts. For businesses providing goods and services to VA facilities — including the many VA facilities across Texas — this preference is highly valuable.
SBA Veteran Advantage Loans
SBA offers fee reductions on SBA-guaranteed loans for veteran-owned businesses. The SBA Veterans Advantage program reduces or eliminates the upfront guarantee fee on SBA Express and other SBA loan products for qualifying veteran borrowers. SBA 7(a) guide.
Boots to Business
The SBA's Boots to Business program provides entrepreneurship training for transitioning service members and their spouses. The program offers a two-day introduction to entrepreneurship course and follow-up resources. For disabled veterans transitioning to business ownership, Boots to Business is a strong starting point.
Texas State Programs
Texas HUB Certification — Service-Disabled Veteran
The Texas HUB program includes a specific category for service-disabled veteran-owned businesses. To qualify, the business must be at least 51% owned by a veteran with a service-connected disability as determined by the VA. HUB certification provides access to state procurement preferences worth billions of dollars annually. HUB program guide.
Texas Veteran Entrepreneur Program
The Texas Veterans Commission coordinates veteran business resources including the Veteran Entrepreneur Program. This program connects veteran business owners with business planning assistance, mentoring, and resource referrals through partnerships with SBDCs and other organizations.
Texas Franchise Tax Exemptions
Certain disabled veteran-owned businesses may qualify for Texas franchise tax exemptions or reductions. Veterans with a 100% service-connected disability rating may access additional property tax exemptions on their homestead, which can free up capital for business investment.
Local Programs
Many Texas cities include veteran-owned businesses in their procurement preference programs:
- San Antonio SBEDA: Includes veteran-owned business category for city procurement preferences.
- Dallas Business Inclusion: Includes veteran-owned business preferences on certain contracts.
- Houston OBO: Connects veteran-owned businesses with city contracting opportunities.
Stacking Certifications
Disabled veteran business owners should consider stacking multiple certifications for maximum procurement access:
- SBA SDVOSB: Federal contracting preferences across all agencies.
- Texas HUB (Service-Disabled Veteran): State contracting preferences.
- City MBE/WBE/VBE: Local contracting preferences where available.
- HUBZone: Additional federal preferences if your business is in a qualifying location.
- SBA 8(a): If you also meet the socially and economically disadvantaged criteria, the 8(a) program adds federal sole-source and set-aside access.
WOTC for Veteran Hiring
If you hire other veterans, your business may claim Work Opportunity Tax Credits. WOTC credits for disabled veteran hires can reach up to $9,600 per employee — the highest WOTC credit available. WOTC guide.
Support Resources
- SBA Veteran Business Outreach Centers (VBOCs): Provide business counseling, training, and mentoring specifically for veteran entrepreneurs.
- SBDCs: Free business counseling at locations across Texas. Many SBDCs have staff experienced with veteran business programs.
- SCORE: Free mentoring from experienced business professionals, including veteran-focused chapters.
- Texas Veterans Commission: State-level coordination of veteran business resources and referrals.
For a broader overview of all veteran business programs, see our veteran business grants guide.
Find Programs That May Fit Your Business
Service-disabled veteran-owned businesses in Texas can access one of the deepest stacks of programs available. Most veteran business owners are eligible for more programs than they realize.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →