Posted by Biz Central USA Marketing Team on March 26, 2009 under Small Biz News | Read the First Comment

Yesterday, USA Today published a story regarding unqualified companies abusing the HUBZone Program (Historically Underutilized Business Zone).  This is definitely something you might want to read if you are a small business owner, an entrepreneurial ′newbie′ or anything in between.  In a short re-cap:

• The Government Accountability Office found that 19 companies were improperly awarded nearly $30 million in federal contracts.
• The GAO reported that ″there are likely hundreds and possibly thousands of firms″ in the program that don′t meet its requirements.
• The committee′s chairwoman, Rep. Nydia Velázquez, D-N.Y., said she plans to urge the SBA to shut down the program until it can fix the problems.
• In July, the GAO reported that they found that 10 Washington D.C. area businesses were improperly part of the program. One company, for example, listed its office as a small room above a dentist′s office in a low-income area, while investigators found its main office was in the suburb of McLean, Va.
• It was determined that 7 of the 10 companies invested in the July report were ineligible.
• SBA officials told the GAO they are ″reengineering″ the program to make it more efficient and to do a better job of preventing and detecting fraud and abuse.

For qualified small businesses the HUBZone program can be an excellent opportunity to secure government contracts, help to empower communities, create jobs, and attract private investment.  What happens though, when small businesses are taking advantage of this program?

 As a small business owner, how do you feel about the millions of dollars given to these unqualified companies? What steps do you think the SBA can make in improving the HUBZone program and preventing such abuse?

Map of U.S. HUBZones

Read the full GAO report.

Posted by Biz Central USA Marketing Team on September 24, 2008 under Small Biz and Entrepreneurship | Be the First to Comment

Many contractors are unaware of the numerous small business certification and assistance programs that exist today to aid underprivileged businesses. In fact, many of these programs are aimed specifically at overcoming the effects of discrimination, which may be a significant obstacle for such individuals to conquer. Here at BizCentral, we seek to create increased awareness of these opportunities, as well as to assist socially and economically disadvantaged firms in obtaining the credentials necessary to compete with larger entities.

Numerous government entities, including the Small Business Administration and Women”s Business Enterprise National Council offer innovative opportunities to assure that small contractors are not left behind in the race for federal contracts. Programs such as the SBA’s 8a teach small companies how to compete in the federal contracting arena and how to take advantage of greater subcontracting opportunities available from large firms as the result of public-private partnerships. For more detailed information on the most common certification programs, check out:

•SBA- 8a or SDB
•Women’s Business Enterprise National Council
• Minority Supplier Development Council
• HUB Zone
• Veteran Owned Business
• Department of Transportation

Nonetheless, the process for applying for inclusion in these programs can be grueling. You must meticulously review application requirements and organizational documentation to assure that each your business has the greatest chance at successfully obtaining certifications and subsequently competing for beneficial contracts, thus bolstering profits. These programs are, in effect, the gateway to opportunity for small contractors and subcontractors.