Verification Process

 Veteran-Owned Business Validation Process

1. Application and Documentation Submission
   1. Require businesses to submit an application that includes:
      1. Business name and EIN (Employer Identification Number)
      2. Ownership structure and percentage breakdown
      3. Owner(s) full name(s) and military service information (branch, rank, and dates of service)
   2. Documentation Checklist:
      1. DD214 form (for proof of military service)
      2. Disability rating letter from the VA, if claiming Service-Disabled Veteran-Owned status
      3. Business incorporation documents (e.g., Articles of Incorporation or Operating Agreement)
      4. Business license (if applicable)
      5. Recent financial or tax document to confirm ownership structure
2. Verification of Military Service
   1. Use the Department of Defense’s Manpower Data Center (DMDC) or VetVerify.org to cross-check the veteran status.
   2. Require the owner to authorize the release of their service record if necessary.
3. Ownership and Control Confirmation
   1. Validate ownership percentage through:
      1. Review of Operating Agreements, Stock Certificates, or Partnership Agreements.
      2. Ensure the veteran has at least 51% ownership and active control of business operations.
      3. Ask for a self-certification statement affirming their operational control and management.
4. Business Validation
   1. Verify the legitimacy of the business via:
      1. State or local business registration databases.
      2. A search for EIN validation or use of services like the IRS Exempt Organizations Select Check (for non-profits).
      3. Review the business’s online presence (website, social media) to ensure alignment with the veteran-owned mission.
5. Interviews and Due Diligence
   1. Conduct a brief interview with the owner to:
      1. Confirm their involvement in day-to-day operations.
      2. Learn about the mission and objectives of the business.
6. Certification and Partnership Agreement
   1. If the business passes verification:
      1. Issue an official certification letter valid for 1-3 years.
      2. Formalize the partnership with your organization through a partnership agreement, outlining mutual expectations and obligations.
7. Annual Review and Recertification
   1. Require annual submissions (e.g., financials, operational updates) to ensure compliance and continuous veteran ownership.
   2. Notify businesses 30-60 days before the certification expires to encourage timely recertification.
8. Grievance and Fraud Reporting Mechanism
   1. Set up a process for anyone to report concerns about fraudulent claims.
   2. Review and investigate all complaints, with the option to revoke certification if necessary.