By American Small Business League
July 17, 2012
A proposed rule
from the U.S. Small Business Administration (SBA) will allow federal agencies to divert billions of dollars in federal small business funds to large businesses every year.
SBA adopted regulations that could have addressed the issue in 2006
and are now issuing the proposed regulations to the same section of the federal code. However, the proposed regulations fail to address these existing problems in the federal marketplace and will also weaken small business programs
so that large companies can “poach
”billions in taxpayer-funded small business funds with less fear of prosecution.
For over a decade, ASBL President Lloyd Chapman and small business advocates have fought to prevent large companies and their subsidiaries from receiving federal small business contracts.
Since 2003, a series of federal investigations have uncovered hundreds of billions of dollars in federal small business contracts being diverted to large businesses. These include
Lockheed Martin, Apple, AT&T, BAE, Rolls-Royce, Finmeccanica and Russian arms company Rosoboronexport
In 2008, Barack Obama issued the statement
, “It is time to end the diversion of federal small business contracts to corporate giants.” After being elected, he never mentioned it again.
“It’s unconscionable that the Obama administration would propose giving more small business contracts to corporate giants at a time when our middle class economy is suffering one of the worst economic recessions in history,” Chapman said.