In an effort to increase the success rates of businesses seeking verification in its VetBiz program, the Center for Veterans Enterprises (CVE) has revamped its website. For the first time, veteran business owners have access to information including: current verification and request for reconsideration (R4R) success rates and wait times; the top ten reasons for verification denials; and nearly a dozen new Verification Assistance Briefs. The idea here is clear: the CVE wants to give veterans the tools to “get it right” the first time.
So what do these tools entail?
VetBiz Statistics. According to the “Average Verification Processing Time” webpage of the VetBiz website, the current success rate for initial verifications is 60%, and the average processing time is 54 days. In contrast, 51% of all R4Rs are granted, with an average processing time of 130 days. This webpage, which is updated periodically when new data is available, may be accessed here.
Reasons for Denial. Below the table of processing times and success rates on the “Average Verification Processing Time,” the CVE published a pie chart. This lists the most common reasons for denial of a VetBiz application, most of which are due to issues with a company’s corporate documents. A whopping 66% of applications are denied because of issues with quorum (voting) and transfer restriction provisions. This is interesting in light of the recent Miles decision rendered by the U.S. Court of Federal Claims – according to both Miles, and the CVE’s Verification Assistance Brief on the subject, a right of first refusal provision is permissible under VA regulations. This means that the VA regulations are less strict than those of the Small Business Administration’s Service Disabled Veteran Owned Small Business Program, which have been interpreted to not permit a right of first refusal provision.
Verification Assistance Briefs. Also accessible are the CVE’s Verification Assistance Briefs, which were drafted by CVE to address and clarify the requirements that most often lead to denial. Of the fifteen Verification Assistance Briefs now posted, some of these topics include: the veteran’s entitlement to receive 51% of the annual distribution; the requirement that ownership be direct; how to show control of a limited liability company; the definition of a “small” business; and the meaning of “full-time control.” These verification assistance briefs may be accessed here.
Will these tools work? Only time will tell. Stay tuned to see. In the interim, if you’re interested in learning more about the verification process, please visit my VetBiz verification FAQs webpage.
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