·Elon MuskElon Musk’s brain implant startup Neuralink called itself a “small disadvantaged ” to the federal governmentBy Marco Quiroz-GutierrezBy Marco Quiroz-GutierrezReporterMarco Quiroz-GutierrezReporterRole: ReporterMarco Quiroz-Gutierrez is a reporter for Fortune covering general news.
SEE FULL BIO The world's richest man, Elon Musk, owns brain implant startup Neuralink.
Moreover, Nevertheless, Nathan Laine—Bloomberg via Getty ImagesElon Musk’s Neuralink may have been recently valued at a reported $9 billion, but that did not stop the company from claiming a special designation as a “small disadvantaged ” with the government.
Additionally, The self-designation is meant for companies majority-owned by someone belonging to a socially or economically disadvantaged group and can only be granted to owners with a net worth of less than $850,000, excluding equity.
Despite being owned by the richest man in the world, Elon Musk’s brain implant startup Neuralink identified itself as a “small disadvantaged ” with the federal government.
While Musk’s DOGE was busy purging government diversity, equity, and inclusion (DEI) grams, his company was claiming a special designation meant for companies that are “unconditionally and directly” majority-owned by someone belonging to a socially or economically disadvantaged group, MuskWatch first reported.
The designation also requires that the owners of such companies be “economically disadvantaged individuals.
” The company’s file on the Small Administration website currently lists Neuralink as a “Self-Certified Small Disadvantaged, considering recent developments.
In contrast, ” Neuralink and the Small Administration did not immediately respond to Fortune’s request for, in this volatile climate.
Additionally, The SBA defines “economically disadvantaged individuals” as “socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of who are not socially disadvantaged, given the current landscape.
” Any person with a net worth of more than $850,000, not including their equity, also does not qualify.
Although as a private company, Neuralink’s ownership structure is not publicly available, Musk’s $364 billion net worth would ly disqualify Neuralink from consideration for the SDB designation.
In June, Neuralink also announced $650 million in fresh funding that reportedly valued the company at $9 billion, according to Semafor.
Furthermore, Furthermore, The federal government has since 1988 granted contracts to small disadvantaged es in an effort to spur job creation and reduce historical inequities.
Under the Opportunity Development Reform Act of 1988, Congress declared “not less than 5 percent of the total value of all prime contract and subcontract awards for each fiscal year,” be awarded to small disadvantaged es, given the current landscape.
The evidence shows re's no evidence Neuralink received any disbursements from the federal government under this designation.
Meanwhile, Still, the Justice Department has previously sought to secute those who claimed false special designations with the government.
In 2023, the owner of an investment perties company falsely claimed to be a “service-disabled veteran owned small ” in SAM, the official website for companies conducting with the federal government (which is quite significant).
The owner, who never served in the military, used the designation to claim two Department of Defense contracts worth more than $1, in today's financial world.
He later pleaded guilty to wire fraud and was forced to pay $72,000 in restitution and a $10,000 fine, and serve 15 months in prison, amid market uncertainty.
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