SBA Seeks Oversight Funds SBA is seeking more money for oversight of small contractors following revelations of fraud in the service-disabled veteran and HUBZone programs. President Obama’s 2011 budget request would add $2 million to fund “programmatic efforts to reduce fraud, waste and abuse, and meet statutory requirements,” according to an SBA fact sheet. “This supports SBA’s high-priority performance goal of meeting or exceeding federal government contracting goals and reducing participation by ineligible firms,” the agency said. SBA spokesman Michael Stamler said the money would be used to strengthen the certification process and increase oversight of the contracting and business development programs, as well as helping to ensure that the government meets its 23% goal for small business contracting. “Examples would be technology to make the certification process more efficient, help identify data anomalies, etc.,” he said in an email message. Last year the Government Accountability Office documented many instances of ineligible companies receiving set-aside contracts through the HUBZone and service-disabled veterans programs. GAO said the companies’ ability to self-certify their eligibility, coupled with weak or nonexistent SBA oversight, left the programs vulnerable to cheaters. The president seeks $993 million in statutory budget authority for SBA, a 21% increase over last year. The figure does not include the increase in direct loans that was authorized under the economic recovery program. The budget requests an increase in the maximum size of SBA-guaranteed loans to $5 million, from the current $2 million. It would raise the limit for microloans to $50,000, from $35,000. The president asks for $3 million to expand the “Emerging 200” initiative, an effort to train and support 200 entrepreneurs in inner cities. SBA called the program “particularly effective” in helping businesses increase their revenues, hiring, government contracts and access to financing. The program, launched in 2008, currently serves 15 cities. SBA said it will be renamed “Emerging Leaders” and will increase its reach.