Lawmakers Demand Crackdown on U.S. Program Enriching Wealthy

Two top lawmakers on small business matters renewed calls for tougher enforcement of the rules in a program that steers government contracts to the socially and economically disadvantaged.

Some wealthy entrepreneurs have received hundreds of millions of dollars in federal contracts reserved for the disadvantaged by repeatedly qualifying for the one-time program, Bloomberg reported yesterday, based on a review of Small Business Administration and procurement data. The preference system, under Section 8(a) of the Small Business Act, accounted for $16.7 billion in government awards last year, more than the budget of the Commerce Department.