Senator Joni Ernst has introduced a bill to halt the Small Business Administration's (SBA) 8(a) program following reports of widespread fraud. The program, designed to support socially and economically disadvantaged businesses, is currently under investigation after evidence surfaced indicating $100 million in fraudulent activity.
The proposed legislation follows Ernst's previous calls for major reforms to the program. She has criticized the Biden administration for increasing the funding goals of the 8(a) initiative, which she argues led to increased opportunities for fraud.
“The 8(a) program is broken and needs to be completely reformed before another dollar goes out the door,” said Ernst. “I will not allow taxpayers to be defrauded of hundreds of millions of dollars because the Biden administration invited con artists to have a free-for-all. It is common sense that SBA programs should help small businesses, not serve as a personal piggy bank to criminals.”
In June, an investigation by the Department of Justice revealed that the 8(a) program had been used in a $550 million bribery scheme spanning several decades. Four individuals, including a government contracting officer from the United States Agency for International Development, pleaded guilty in connection with these charges.
Further details about Senator Ernst’s bill can be found here.
