Ernst Introduces Bill To Halt Fraud-Filled SBA Program

8(a) program is under investigation after evidence of $100 million fraud.
WASHINGTON – Following allegations of a $100 millionfraud schemein the Small Business Administration’s (SBA) 8(a) program, Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) is introducing theStop 8(a) Contracting Fraud Actto halt all new no-bid awards until a detailed audit of the entire program is conducted.
The new legislation comes after Ernstcalledfor major reforms and to assess the damage done by the Biden administration opening the floodgates to fraud by tripling the funding goals of the program that provides billions to “socially and economically disadvantaged businesses.”
“The 8(a) program is broken and needs to be completely reformed before another dollar goes out the door,”said Ernst.“I will not allow taxpayers to be defrauded of hundreds of millions of dollars because the Biden administration invited con artists to have a free-for-all. It is common sense that SBA programs should help small businesses, not serve as a personal piggy bank to criminals.”
Clickhereto view the bill.
Background:
In June, the Department of Justicefoundthat the 8(a) program was used to facilitate a $550 million bribery scheme over several decades. Four men, including a government contracting officer at the United States Agency for International Development, pled guilty to the charges.
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