Money Flows To Ineligible Firms From Lax Oversight Of SBA

Small Business Administration program aided sham firms, investigators charge.  LA Times.

The Government Accountability Office said so itself.  The GAO has charged that the SBA has repeatedly given out millions of dollars earmarked for poor areas in HUB zones, to undeserving large or ineligible firms. 

“When you starve an agency of resources and put in place the wrong people, this is the result: Fraud goes undetected and dishonest companies see skirting the rules as ‘business as usual,’ ” said Rep. Nydia Velazquez (D-N.Y.), who chairs the House Small Business Committee.

The reason.

…failed to verify paperwork and conduct audits…

This should inflame small business owners everywhere who work hard, without the benefit of the SBA.  Your tax dollars at work. 

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