[Decision Concerning SBA Application of Bona Fide Needs Rule to Funding of Small Business Development Centers]

The Small Business Administration (SBA) asked whether the bona-fide-needs rule applied to its funding of certain small business development centers' cooperative agreements on September 30 of each fiscal year, even though the centers performed the required services in each subsequent fiscal year. GAO held that SBA properly used the bona-fide-needs rule in making 1-year cooperative agreements, since its bona fide need was to provide assistance during the fiscal year or years for which Congress provided the appropriations. Accordingly, SBA did not violate the bona-fide-needs rule.