VA, SBA preparing to loosen rules on veteran ownership of small firms

Leney: “Expanded verification” needed to stop SDVOSB fraud

      The Veterans Affairs Dept. and the Small Business Administration are working together on a joint rule loosening restrictions on veterans’ ownership and control of small businesses, a top VA executive said in a recent VA webinar.

      Thomas J. Leney, executive director of VA’s Small and Veteran Business Program office, said the joint rule would align with “normal business practices” and would address the main reasons why veteran-owned firms are ruled ineligible for set-asides. It will be “much friendlier and more appropriate,” Leney said.

      Several of the changes involve giving minority investors more of a say in the ownership and operation of service-disabled veteran-owned small businesses (SDVOSBs), to make it easier to attract such investors.

      At the same time, the VA and SBA want to expand verification of the SDVOSBs’ information to reduce fraud, Leney said...more....