Ineligible tribes in 8(a)
The SBA approved into the 8(a) program two small businesses whose owners claimed to be socially disadvantaged as members of Native American tribes, even though the tribes are not officially recognized by state or federal governments, an SBA Office of Inspector General investigation found.
SBA “used subjective and inconsistent processes and unofficial information to determine whether Indian tribes were state recognized,” the IG report said. The firms won $11 million in 8(a) set-asides over five years.
The SBA has removed the two ineligible firms from 8(a). SBA agreed with IG’s recommendation to admit only from recognized tribes.
More information:
Read the IG report:https://bit.ly/3mlucFG