Senate Bill Would Grandfather HUBZone Companies The Senate has approved legislation that would allow more than 3,000 small companies to remain in the HUBZone program. Unless the House goes along, the companies will lose their HUBZone status after Oct. 1 because of new census data. The Small Business Fraud Prevention Act, S. 633, passed the Senate by unanimous vote Sept. 21. The legislation would also give SBA new tools to combat fraud and abuse in small business contracting programs. It would require 8(a), HUBZone and service-disabled veteran-owned businesses to file documentation supporting their eligibility with the Online Registrations and Certifications database. Woman-owned businesses already must meet this requirement. New data from the 2010 census is expected to show that 3,400 companies—around 40% of those in the program—are no longer eligible for HUBZone status because their home areas no longer qualify as HUBZones. The legislation would extend their eligibility for three years, just as Congress did after the 2000 census. (SAA, 8/5) “In these tough economic times, we can't cut the cord to America's small businesses, and government contracts are one of the easiest ways the federal government can boost the small business economy,” said Senate Small Business Committee Chair Mary Landrieu, D-LA, on of the bill’s cosponsors. The bill’S anti-fraud provisions grew out of Government Accountability Office investigations that documented widespread abuse in the 8(a), HUBZone and SDV contracting programs. Among other things, it provides for stiffer criminal and civil penalties for companies that misrepresent their eligibility for the contracting programs.