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SBA Stats Depend on Fuzzy Math
Tuesday, October 13,2009 09:07 PM
Just when it started to sound like the SBA was using its federal dollars more wisely ($93.3 billion awarded to small business contractors last year ... $10 billion more than 2007!), we find out they may have a broken calculator ... and worse, are still working with "small businesses" that aren't even remotely small.
Billions of dollars reportedly allocated to small contractors are still flowing to corporate giants. The SBA's top two "small business contractors" for 2008 -- VSE Corp. ($1 billion in annual revenues) and AAI Corp., a division of Textron Inc. ($14.2 billion in annual revenues) -- weren't small at all. They alone accounted for $1.6 billion in federal "small business" spending.
And that's after the SBA tossed more than $13 billion worth of "imposters" out of the original tally of $107 billion. Of course, the SBA claims it is "trying to weed out" the imposters ... but what does that mean? How did those weeds even get into the garden? To arrive at the 93.3 billion dollar number, the SBA
...scrubbed out some $6 billion in contracts incorrectly attributed to small businesses...
A $6 billion mistake? Joe Jordan of the SBA claims this year's numbers will be the "most accurate ever." However, a former chief counsel for the SBA says the "numbers continue to suffer from inaccuracy" and may continue to do so for several years. Read the whole thing at http://money.cnn.com/2009/10/07/smallbusiness/sba_federal_money.fsb/index.htm