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The IG reports that 98 percent of HUBZone firms are ineligible within 3 years?

April 26, 2017firms hubzone IG ineligible reports

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The IG reports that 98 percent of HUBZone firms are ineligible within 3 years?

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Roughly 30% of current HUBZone firms are less than two years old. The failure rate is proportional to that in young firms. Many firms do drop out, but that is not a sign of fraud. The IG made five recommendations to help SBA clarify and update its recertification process and we have implemented or are implementing all of them, including improved referralsto the IG of fraudulent HUBZone activities.