Wednesday, November 27, 2013

Firms receiving most money from federal small business program were ineligible

By MICHAL CONGER | NOVEMBER 22, 2013

 A Small Business Administration program designed to help businesses in low-income areas get federal contracts gave a dozen firms, including three ineligible ones, 94 percent of the funding awarded over a six-month period last year.  The 12 companies received 34.9 million from the SBA's HUBZone program between July and December 2012, even though 367 firms were certified during that period, according to an audit made public Friday by the SBA inspector general.  To be eligible for the program, firms must have a primary office in a HUBZone; have at least 35 percent of employees living in a HUBZone; and have never been debarred or suspended from receiving federal contracts.  Three of the firms broke these rules, one through possible fraud, and received more than $1 million that should have gone to other businesses, the IG said…..To Read More…..

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