Small Business Finance News
Veterans Affairs Cracks Down On False Vet Businesses
Written by Jenna Weiner
Published: 7/29/2011
A Veterans Affairs Department investigation uncovers rampant eligibility concerns in VA contract programs.
In what some may consider to be surprising small business news, Veterans Affairs Department investigators have discovered problems with small businesses claiming to be owned by veterans, the Army Times reports
The problem was discovered after a spot check found that 76 percent of businesses did not meet eligibility requirements, the news source said. VA officials said they believe there is a minimum of 1,400 small businesses falsely receiving contracts from VA valued at a total of more than $500 million
The VA said without tighter controls in coming months and years, $2.5 billion in contracts could go to ineligible businesses, according to the Army Times. The report released by the inspector general's office said there are many reasons a business could be considered not eligible, some technical and some because of fraud.
Businesses that are actually owned by veterans will have a chance to network at the first National Veterans Small Business Conference and Expo August 15 through 18 in New Orleans. This will be the largest event of its kind, and Eric Shinseki, secretary of VA, said the conference will provide veterans with the tools they need to survive the federal market.
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