How the Veterans Small Business Enhancement Act Helps Veteran Small Business Owners

Veteran-owned businesses often face financial challenges, but a unique solution can be found in the Veterans Small Business Enhancement Act of 2018, introduced by Sen. Tammy Duckworth. Thanks to this law, veterans can obtain government surplus property for free, reducing startup and operational costs. Whether it’s industrial tools, computers, or office equipment, these resources help veteran entrepreneurs stay competitive and reinvest in their businesses. 

 In this blog, we’ll walk you through the steps to access free government surplus property as a veteran small business owner. You’ll learn how to register your business, get certified, and connect with your state’s surplus agency. We’ll also cover the key rules you need to follow to maintain eligibility. By the end, you’ll have a clear roadmap to take advantage of this valuable program and reduce costs for your business. 

 Helpful Resource:  Check out our interview with Sen. Duckworth 

Government Surplus Property: Compliance Rules for Veterans

Before receiving surplus property, your Veteran-Owned Small Business (VOSB) must sign an agreement to follow these federal regulations: 

• Business Operations: Your business must be registered, certified, and actively operating in your state. 
• Ownership: At least 51% of the business must be owned and controlled by an eligible veteran, service-disabled veteran, or surviving spouse. 
• Permitted Use: The property must be used for business operations—not for personal or non-business activities. 
• Restrictions on Transfers: You cannot sell, lease, or transfer the property unless approved by the State Agency for Surplus Property (SASP), General Services Administration (GSA), and SBA. 
• State-Specific Guidelines: If you plan to move the property out of state, get approval first from your SASP. 
• One-Year Rule: The property must be in use within one year of acquisition. 
• Ongoing Certification: Your business must stay compliant with SBA and SASP regulations for the full federal restriction period. 
• Inspections: Be prepared for compliance checks by SBA, GSA, and SASP at any time. 

 Helpful Resource:  For full eligibility details, visit: SBA Veteran Assistance Programs 

Steps to access federal surplus property as a Veteran Small Business Owner

Step 1: Establish Your Veteran-Owned Business

Start by choosing your business structure—whether it’s a sole proprietorship, partnership, or LLC. If you have business partners, ensure that veterans own at least 51% of the company to qualify for veteran-owned business benefits. 

Helpful Resource: Here is a breakdown of the differences between business structures 

Step 2: Register your Veteran-Owned Business as a “Unique Entity” at SAM.GOV 

Before accessing surplus property, you must register your business as a Unique Entity on SAM.gov. This free registration allows your business to qualify for government benefits, including contracts and surplus property. You’ll receive a Unique Entity ID, which is required for the next steps. 

Helpful Resource: Use the SAM.gov Entity Registration Checklist to ensure you complete the process correctly. 

Step 3: Become a Certified Veteran-Owned Small Business 

Now that you have a Unique Entity ID, it’s time to get officially recognized as a veteran-owned business. Certification through the Small Business Administration (SBA) helps unlock federal surplus property, government contracts, and other exclusive opportunities. 

Helpful Resource:  Apply for your SBA Veteran Certification 

Step 4: Get in Touch with Your State Agency for Surplus Property 

You’re almost there! Each state has different procedures for accessing surplus property, so check with your state’s agency to learn about their specific requirements. 

Helpful Resource:  Find your state’s contact information here: State Surplus Agencies. 

Set your Veteran-Owned Business Up For Success  

Accessing free government surplus property can be a game-changer for veteran small business owners, helping to reduce costs and invest more in growing their businesses. By following the necessary steps—registering your business, obtaining certification, and working with your state’s surplus agency—you can take full advantage of this valuable program. Just be sure to comply with all usage rules to maintain eligibility and keep your business in good standing. If you’re a veteran entrepreneur looking for ways to maximize resources, this program is an excellent opportunity to get the equipment and supplies you need without extra financial strain.

Start the process today and put your business on the path to success!