SBA Eases Lifetime Limit on Mentors

The SBA has long had a lifetime limit of two mentors for each protégé–and this limit was enforced very strictly. Say the mentor ghosted the protégé, or the two just never did any contracts together. Well, too bad, that still used up one of the two lifetime mentors that a protégé could have.

They say there are no second chances, but the SBA’s new rule will allow for second chances on a mentor protégé arrangement in some circumstances, which should benefit protégés going forward.

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SBA Inspector General Says SBA’s Corrective Actions Have Effectively Resolved 8(a) Eligibility Concerns

SBA’s Office of Inspector General (OIG) recently inspected SBA’s 2019-2020 corrective actions to determine whether they had effectively reduced the risks previously found in SBA’s 8(a) Program eligibility determinations. Apparently, the OIG liked what it saw.

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Inspector General: SBA’s Certify.SBA.gov Platform “Has Not Accomplished Its Objectives”

The SBA’s “Certify” website, certify.SBA.gov, has fallen far short of meeting its objectives, according to an eye-opening report from the SBA’s Office of Inspector General.

The OIG concludes that, despite an investment of $30 million, Certify “does not have many of the essential search, analytical, and reporting tools it was supposed to have.” Additionally, Certify’s lack of functionality has forced SBA employees to use time-consuming workarounds, causing delays in screening and approving applications, among other things.

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SBA Issues 2019 Small Business Scorecard, Small Business Contracting Over $130 Billion!

The SBA’s FY2019 Small Business Procurement Scorecard came out recently and revealed some interesting trends in the dollars and cents of small business contracting. While there are a lot of positives for small businesses, not all the numbers are great. Read on for the details!

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SBA Inspector General Warns of ‘Widespread’ Fraud in COVID-19 Loan Program

According to the U.S. Small Business Administration Office of the Inspector General, potential fraudsters have obtained $250 million in federal funds intended to help businesses survive the impact of COVID-19.

The Inspector General also identified $45.6 million in potentially duplicate payments and warned that with well over $220 billion left to give out, rapid changes were needed.

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SBA: It’s (Maybe) Fine if You Didn’t Count the Employees of Your Foreign Affiliates for PPP Purposes

In what might be a classic “now you tell me” scenario, the SBA issued a new rule May 21 saying that if an applicant failed to count the employees of its foreign affiliates when it was determining its eligibility, the SBA will not hold that against the applicant so long as the application was submitted before the SBA clarified that requirement.

The problem with that, however, is that because the safe harbor ended May 18, it’s highly likely that a lot of those businesses already gave their PPP loan back. They’d be forgiven for thinking they had to, as earlier this month Sen. Marco Rubio was indicating that Congress would investigate companies who took PPP funds for which they weren’t eligible.

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UPDATE: SBA Extends PPP Loan Payback Safe Harbor Provision Deadline (Again!) to May 18

Since our post yesterday, the SBA has once again updated the safe harbor deadline for paying back Paycheck Protection Program loans to Monday, May 18.

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