Under federal law (15 U.S.C. 645(d)), any person who misrepresents a firm's status as a small, small disadvantaged, or women-owned small business concern in order to obtain a contract to be awarded under the small business preference programs established under federal law is subject to:
- the imposition of fines, imprisonment, or both
- administrative remedies, including suspension and debarment
- ineligibility for participation in programs conducted under the authority of the Small Business Act.