|
Federal Market Intelligence for Small Business |
|
|
|
|
Economically-Disadvantaged with $375KSBA plans to allow higher net worth for 8(a) ownersThe Small Business Administration is drawing up plans to change the definition of “economically disadvantaged” for the 8(a) Business Development program to allow a net worth of up to $375,000, according to a report from the SBA Office of Inspector General. The current limit is $250,000. The plan originated from a report prepared in fiscal 2018 by a contractor hired by the SBA to study whether to change the definition of “economically disadvantaged” for 8(a) owners, the OIG said. The contractor’s report recommended the hike to $375,000 for an 8(a) owner’s net worth. The inspector general said SBA officials have indicated they intend to follow through with a rule proposing the change. However, the OIG is raising objections, saying that the SBA has not fully justified the increase. “OIG contends that the Agency should develop objective and reasonable criteria for determining the threshold where socially disadvantaged individuals face economic disadvantage,” the OIG wrote in its “Report on the Most Serious Management and Performances Challenges Facing the SBA in Fiscal 2019.” The report also raised a number of other concerns and made several observations about the 8(a) program:
More information:
|
|
Copyright © 2018 Business Research Services Inc. All rights reserved.