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SBA Budget Mired in Controversy
By Keith Girard
AllBusiness.com
October 9, 8800
Republican leaders in the House abruptly withdrew a bill reauthorizing the Small Business Administration's budget last month after Democrats blitzed it with last-minute amendments.
Now the bill is about to resurface before the House Small Business Committee, but critics say it still falls short on one of the biggest challenges facing the SBA contracting fraud. The current bill would increase fines and penalties for small business fraud, but the SBA has never prosecuted any large business for misrepresenting its size to win small business contracts.
"We don't need stiffer penalties; we need current penalties enforced," said Lloyd Chapman, president of the American Small Business League. "The Republican-controlled Congress has not proposed a single piece of legislation in three years to address the fraud and abuse documented in 13 federal investigations."
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