VETERAN-OWNED SMALL BUSINESSES OWNERS REPORT LOSSES DUE TO DOGE CUTS
Operating a Veteran-owned small business has become much more complicated as of late. Whereas many have contracts helping the U.S. Department of Veterans Affairs (VA) and other federal government entities, the ongoing cuts from Elon Musk’s Department of Government Efficiency (DOGE), under the direction of President Donald Trump, are complicating things. Unfortunately, it’s leading to layoffs and financial challenges for the very community such cuts are supposed to be helping.
Veteran-Owned Small Businesses Are Struggling Amid Federal Cuts
In just a week, Air Force Veteran Robert Betters saw his business revenue cut in half and had to lay off 45 employees—many of them also Vets. This is just one example of how Veteran-owned small business owners are dealing with federal cuts on a practical level.
The VA canceled seven of his company’s contracts amid the ongoing federal cuts ordered by President Trump, and now Betters, who founded RB Consulting, Inc. 20 years ago, found his enterprise as part of the $2 billion in terminations facing the department.
“I just worry about my employees. My key concern is that now that a lot of people are being laid off, can people find jobs in a timely manner?” said Betters.
The cuts are part of $2 billion in contract terminations ordered by new VA Secretary Doug Collins, who says the funds will be redirected to Veteran healthcare and benefits despite not having a clear plan for doing so.
RB Consulting had been providing supply chain and IT management services for the VA. Now, Betters is focusing on helping his employees, worrying about how quickly they can find new jobs.
His company’s contracts aimed to improve VA services, including streamlining disability evaluations and hospital supply chains.
Critics, including National Veteran Small Business Coalition leaders, argue the cuts unfairly vilify Veteran-owned businesses that simply fulfilled government contracts.
“They didn’t go and hold a gun to anybody’s head to say give me money. They followed the process. They either applied for a job, or the federal government solicited for someone to fulfill the requirements of a contract. They were given a mission, they’re fulfilling the mission. If the mission is no longer needed or was considered (a) waste, ok, that’s acceptable. But don’t hold them accountable for fulfilling what someone else asked them to do," said Scott Jensen, executive director of the National Veteran Small Business Coalition.
Some Cuts May Come Back to Haunt the VA
VA Secretary Doug Collins is committed to making cuts, and he’s not mincing words.
In a video message, he called out $2 billion in contracts for things like making PowerPoint slides and taking meeting notes, saying, “Take your own notes. I’ll send you a pencil if you need one.”
While such examples could be an argument for the cuts, Veteran-owned small business contractors like the one Betters run offer much more than just a snazzy presentation.
His company lost contracts that helped modernize VA systems, including digitizing disability evaluation surveys and streamlining hospital supply chains.
The argument against the picture being painted for Veteran business is that these contractors make a true difference by providing specialized expertise that VA staff simply don’t have.
For example, a canceled contract aimed to create a master catalog for 172 VA hospitals, helping staff find medications and medical supplies quickly and efficiently. Without it, hospitals could overspend or even struggle to provide care.
Furthermore, while concern over government spending is legitimate, the use of contractors can help save money by avoiding long-term hiring without skipping or delaying critical work that needs to be done for Vets.
”What happens to the Veteran is, they could be turned away if you don’t have enough resources (and) people that are helping you with your supplies at the hospital,” said Betters.
Uncertainty Continues
Veteran-owned businesses have long had an advantage in securing VA contracts, but recent cuts are shaking up the landscape.
The VA, following a Supreme Court ruling and federal guidelines, has prioritized awarding contracts to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).
However, many of these businesses rely heavily on VA contracts, with many receiving an overwhelming majority of their revenue from the department.
One SDVOSB lost 70% of its value overnight, leading to 70 layoffs and looming bankruptcy.
With a broader audit of 90,000 contracts underway, Veteran business owners fear more unexpected cuts, raising anxiety amid the uncertainty.
This uncertainty is exactly why many affected Veteran business owners are looking for answers on what's next in hopes of preparing for the worst while hoping for the best.
The Impact of Veteran-Owned Small Businesses
With around 1.9 million Veteran-owned businesses in the United States and nearly 5.5 million Americans as their employees, cuts within the community can run deep.
Businesses help bring life to our communities, services to those who are in need, and provide the opportunity to put food on the table.
Veteran-owned small business is part of the backbone of our nation, and owners deserve more transparency as they prepare for the unknown.
Source: U.S. Small Business Administration
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