SBA Vet Issues Update 14

Posted: September 23, 2011 in Uncategorized
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After an investigation, the U.S. Department of Veterans Affairs found major problems with small businesses claiming to be owned by veterans, according to the Navy Times. The news source said VA officials found 76 percent of businesses did not meet eligibility requirements for funding, meaning a minimum of 1,400 small businesses are falsely receiving money. VA values this funding at more than $500 million. To be eligible to receive funding, the Navy Times said that businesses must be owned and operated by a veteran, but some companies are run day-to-day by non veterans. This leaves the owner as a figurehead, according to investigators, and therefore not eligible to receive benefits. The Times report said one company, which received $340,000 in contracts, was run by a "disabled veteran" who was in the Marine Corps for five weeks before being discharged because of an injury in an off-duty football game. He would not have qualified for the money. Actual veterans who run small businesses will be able to network in August at the first National Veterans Small Business Conference and Expo in New Orleans hosted by VA. VA Secretary Eric Shinseki said the goal is to help veterans grow and start their own businesses. He said he hopes this offers veteran-owned businesses tools and access needed to thrive in the market. [Source: Small Business News DEREK MCALLISTER article 29 Jul 2011 ++]

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