Musk's brain-computer interface company sought 'disadvantaged' status
July 18 (UPI) -- Elon Musk's brain-implant company, Neuralink, which helps paralyzed people regain some independence, allegedly claimed "small disadvantaged business" status in a filing with the Small Business Administration earlier this year.
The filing was made just weeks before the company received a valuation of $9 billion in June in a funding round aimed at making the tech available to more patients and developing new interfaces that "deepen the connection between biological and artificial intelligence."
SDB status, the eligibility for which is majority ownership and control by one or more "disadvantaged" individuals who are "socially disadvantaged and economically disadvantaged," can make it easier to secure government contracts.
The Code of Federal Regulations further requires that the ability of the disadvantaged owners to compete in the free market was "impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged."
None of these criteria appear applicable to Musk, a white male, Anglican, with a net worth of $404 billion and a track record of building highly successful multi-billion-dollar companies, according to MuskWatch.
The federal government hands out contracts to SDB's worth $50 billion every year, MuskWatch says the designation provides a significant advantage to companies seeking a share of the pie, as well as prominence in listings in the SBA's business search directories and other government databases.
No federal funding has been passed to Neuralink, although it may have tendered for government contracts or applied for grants, loans or alternative forms of financial help in the past.
The filing April 24 coincided with the perios during which Musk was downsizing government departments and agencies in his role as head of the Trump administration's Department of Government Efficiency, where he placed particular emphasis on attacking diversity, equality and inclusion programs and the staff who administered them.
The filing, which is self-certified, was signed by Neuralink executives.
Neuralink executive Jared Birchall, who is named on the filing as the company's contact person, didn't immediately respond to a request for comment.
Government contractors who wrongly claimed SDB status or misrepresented the nature of their companies in their profiles in government business directories have been the subject of Justice Department prosecutions, resulting in imprisonment and/or hefty fines.
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