SBA RIFE WITH FRAUD

The Small Business Administration is rife with fraud, according to a report by the General Accountability Office. The SBA, which is supposed to be helping small businesses across the country secure federal contracts is so inundated with fraud that it makes you wonder, who's supposed to be overseeing this?

A GAO investigation of 36 companies in four metropolitan areas discovered that 19 ... that's one more than half of those companies ... were using fake addresses, or subcontracting to larger firms, or the majority of their employees were located in a non-qualifying locations.

Apparently, the GAO warned the SBA of these frauds months before the report was issued. But when the GAO went back to check, it found that most of the fraudulent companies were still running their scams inside the SBA.

With the Treasury Department about to make available as much as $15 billion for small-business lending, heads need to roll inside the SBA.