Small Business Administration Facing Federal Injunction to End Corruption and Fraud

Press Release

Small Business Administration Facing Federal Injunction to End Corruption and Fraud

ASBL Files for Federal Injunction Against SBA to End Corruption and Fraud

American Small Business League
May 4, 2016

 

Petaluma, Calif. - The American Small Business League (ASBL) has filedfor an injunction in Federal District Court in San Francisco against theSmall Business Administration to halt illegal policies they believe havedefrauded small businesses and small businesses owned by women, minorities anddisabled veterans out of hundreds of billions of dollars in governmentcontracts.

 

The ASBL's injunction is asking the court to halt twospecific SBA policies they believe have cheated small businesses out ofhundreds of billions in federal contracts.

 

The Small Business Act states, "TheGovernmentwide goal for participation by small business concerns shall beestablished at not less than 23 percent of the total value of all primecontract awards for each fiscal year." Within that category, the goalstates 5 percent for women-owned small businesses, 5 percent for minority-ownedfirms, and 3 percent for disabled veterans.

 

The SBA has created a policy they call the "exclusionaryrule" and "smallbusiness eligible dollars" that uses a significantly lower federalacquisition budget number to calculate the percentage of contracts awarded toall categories of small businesses. The ASBL maintains the SBA's exclusionarypolicy has no basis in the law and has allowed the SBA to defraud smallbusinesses out of billions in federal contracts.

 

Data from the CongressionalBudget Office indicates a total federal budget for fiscal year 2015 of $3.9trillion and a discretionary spending budget of $1.2 trillion. The ASBLbelieves $1.2 trillion is the most accurate acquisition budget number thatshould be used to calculate the volume and percentage of federal contractsawarded to small businesses for FY 2015.

 

The second SBA policy the ASBL believes is in violation ofthe Small Business Act is the SBA's "grandfatheringrule" or "five-yearrule". Using this policy, the SBA reports billionsin federal contracts to Fortune 500 firms, their subsidiaries, and hundredsof large businesses around the world as small business contracts. Thisdramatically inflates the volume of federal contracts that appear to have beenawarded to small businesses. The ASBL maintains no provision of the SmallBusiness Act would allow the SBA to report awards to Fortune 500 firms as smallbusiness contracts.

 

Professor Charles Tiefer, one of the nation's leadingexperts in federal contracting law, issued a legal opinionthat agreed with the ASBL's position that the total federal acquisition budget iswell over $1 trillion dollars and that language in the Small Business Act doesallow contracts to Fortune 500 firms, or any large businesses, to be reportedby the SBA as small business contracts.

 

Beginning in 2002 a long series of federal investigationsand investigative reports from groups such as PublicCitizen have challenged the SBA's policy of reporting awards to Fortune 500firms as small business contracts. ABC, CBS, NBC, CNN, MSNBC, CNBC, Fox News, Fox Business and RTTV have all reported onthe abuses.

 

 

ASBL President LloydChapman stated, "I am confident the court will find the SBA's policiesviolate federal law and the SBA has blatantly falsified federal small businesscontracting data and cheated small businesses out of billions of dollars."

 

To view full press release, click here: http://www.marketwired.com/press-release/small-business-administration-facing-federal-injunction-to-end-corruption-and-fraud-2121219.htm

 

 

 

 

 

 

 

 

 

 

 

 

 


Federal Injunction Filed by ASBL Could End SBA Corruption and Fraud

Press Release

Federal Injunction Filed by ASBL Could End SBA Corruption and Fraud

ASBL Files for Federal Injunction Against SBA to End Corruption and Fraud

American Small Business League
May 4, 2016

Petaluma, Calif. - The American Small Business League (ASBL) has filedfor an injunction in Federal District Court in San Francisco against theSmall Business Administration to halt illegal policies they believe havedefrauded small businesses and small businesses owned by women, minorities anddisabled veterans out of hundreds of billions of dollars in governmentcontracts.

 

The ASBL's injunction is asking the court to halt twospecific SBA policies they believe have cheated small businesses out ofhundreds of billions in federal contracts.

 

The Small Business Act states, "TheGovernmentwide goal for participation by small business concerns shall beestablished at not less than 23 percent of the total value of all primecontract awards for each fiscal year." Within that category, the goalstates 5 percent for women-owned small businesses, 5 percent for minority-ownedfirms, and 3 percent for disabled veterans.

 

The SBA has created a policy they call the "exclusionaryrule" and "smallbusiness eligible dollars" that uses a significantly lower federalacquisition budget number to calculate the percentage of contracts awarded toall categories of small businesses. The ASBL maintains the SBA's exclusionarypolicy has no basis in the law and has allowed the SBA to defraud smallbusinesses out of billions in federal contracts.

 

Data from the CongressionalBudget Office indicates a total federal budget for fiscal year 2015 of $3.9trillion and a discretionary spending budget of $1.2 trillion. The ASBLbelieves $1.2 trillion is the most accurate acquisition budget number thatshould be used to calculate the volume and percentage of federal contractsawarded to small businesses for FY 2015.

 

The second SBA policy the ASBL believes is in violation ofthe Small Business Act is the SBA's "grandfatheringrule" or "five-yearrule". Using this policy, the SBA reports billionsin federal contracts to Fortune 500 firms, their subsidiaries, and hundredsof large businesses around the world as small business contracts. Thisdramatically inflates the volume of federal contracts that appear to have beenawarded to small businesses. The ASBL maintains no provision of the SmallBusiness Act would allow the SBA to report awards to Fortune 500 firms as smallbusiness contracts.

 

Professor Charles Tiefer, one of the nation's leadingexperts in federal contracting law, issued a legal opinionthat agreed with the ASBL's position that the total federal acquisition budget iswell over $1 trillion dollars and that language in the Small Business Act doesallow contracts to Fortune 500 firms, or any large businesses, to be reportedby the SBA as small business contracts.

 

Beginning in 2002 a long series of federal investigationsand investigative reports from groups such as PublicCitizen have challenged the SBA's policy of reporting awards to Fortune 500firms as small business contracts. ABC, CBS, NBC, CNN, MSNBC, CNBC, Fox News, Fox Business and RTTV have all reported onthe abuses.

 

 

ASBL President LloydChapman stated, "I am confident the court will find the SBA's policiesviolate federal law and the SBA has blatantly falsified federal small businesscontracting data and cheated small businesses out of billions of dollars."

 

To view full press release, click here: http://www.prnewswire.com/news-releases/federal-injunction-filed-by-asbl-could-end-sba-corruption-and-fraud-300262873.html?tc=eml_cleartime

 

 

 

 

 

 

 

 

 

 

 

 

 


Presidential Candidates Asked to End Corruption and Fraud at SBA

Press Release

Presidential Candidates Asked to End Corruption and Fraud at SBA

ASBL Asks Presidential Candidates to Keep Obama Campaign Promise

May 3, 2016

Petaluma, Calif. -The American Small Business League (ASBL)has sent letters to DonaldTrump, Senator Cruz,Governor Kasich, Secretary Clinton and Senator Sanders in theform of national press releases asking them to pledge to keep a campaignpromise President Obama made in 2008.

 

Responding to dozens of federal investigationsand investigativereports in the media that found the Small Business Administration (SBA) wascheating small business out of billions in federal contracts and subcontractsPresident Obama released the statement, "It is time to end thediversion of federal small business contracts to corporate giants."

 

Since President Obama took officethe diversionof billions a month in federal small business contracts to Fortune 500firms and corporate giants has continued. Every year of the ObamaAdministration the SBA Office of Inspector General headed by Obama appointeePeg Gustafson has named the diversion offederal small business contracts to large businesses as the number one problemwith the upper management at the SBA.

 

 The Government Accountability Officeuncovered over 5,000large businesses receiving billions in federal small business contracts intheir investigationbased on information provided by ASBL President Lloyd Chapman.

 

Hundreds of articles on the issue canbe found on a wide variety of websites. The AssociatedPress and dozens of publications such as the LosAngeles Times, Miami Herald,WashingtonPost, GovernmentExecutive, and FederalTimes have all reported on the abuses at the SBA.

 

Most of the major nationaltelevision news channels such as NBC, CBS, ABC, CNN, CNBC, MSNBC, FoxNews and RRTV haveproduced stories on the issue.

 

In May of 2015, government watchdoggroup, Public Citizen, released a damming investigative report on the fraudtitled "Sleighted." Public Citizen found the SBA had used "accounting tricks [to] create[a] false impression that small businesses are getting their share ofprocurement money…"

 

In the ASBL's most recent legal victory overthe Pentagon to expose evidence of corruption and fraud in Pentagon smallbusiness programs, Federal Judge William Alsup stated "the purpose of the Freedomof Information Act is so the public can see how our government works. Congresspassed this law to make small businesses have access to some of these projects,andhere is the United States covering it up."

 

Research by the ASBL indicates overthe last ten years the nation's 28 million small businesses may have beendefrauded out of up to $2 trillion in federal contracts and subcontracts.

 

In 2014, American Express OpenForum named Lloyd Chapman oneof the four strongest voices for small businesses in America for hiscampaign to end fraud in federal small business programs. The ASBL plans torelease a documentaryof the history of fraud at the SBA this summer.

 

To view full press release, clickhere: http://www.prnewswire.com/news-releases/presidential-candidates-asked-to-end-corruption-and-fraud-at-sba-300261435.html

 

 

 

 

 


An Open Letter to Donald Trump from American Small Business League President Lloyd Chapman

Press Release

An Open Letter to Donald Trump from American Small Business League President Lloyd Chapman

American Small Business League
May 2, 2016

PETALUMA, Calif., May 2, 2016 /PRNewswire-USNewswire/-- The AmericanSmall Business League (ASBL)is asking all Presidential candidates to celebrate Federal Small Business Weekby pledging to keep a 2008 campaign promise President Obama made when hestated, "Itis time to end the diversion of federal small business contracts to corporategiants."

Federal law mandates a minimum of 23% of the total value of all federal primecontracts be awarded to small businesses. Within that category, thegoal states 5% for women-owned small businesses, 5% for minority-owned firms,and 3% for disabled veterans.

There have been a long series of federal investigations that have found theactual recipients of billions a year in federal small business contracts were Fortune 500 firms , their subsidiaries, and corporategiants around the world .

Since 2002, virtuallyevery major newspaper in the nation has reported on the fraud and abuse infederal small business programs. Every major television network such as NBC ,CBS ,ABC ,CNN ,CNBC ,MSNBC ,Fox Newsand RRTVhave released investigative reports on the blatant fraud in federal smallbusiness programs.

In addition todiverting billions a month in federalsmall business contracts to corporate giants, all categories of smallbusinesses have been cheated out of hundreds of billions by what the SBA callstheir "exclusionary rule." As opposed to using thetotal federal acquisition budget as required by law to calculate the percentageof awards to small businesses, the SBA uses a much smaller number to drastically inflate and fabricate those numbers .

According to theCongressional Budge Office for fiscal year 2015, the total discretionaryacquisition budget was $1.2 trillion.  Yet, the SBA used just $352 billion to falsify the government's achievementof small business goals in 2015.  

The Small Business Act that originally established federalsmall business contracting goals is the single largest economic stimulusprogram ever passed for middle class Americans.

Based on governmentdata there are over 28 million small businesses in America. Those firms areresponsible for the over 50% of the private sector work force and over 50% ofthe Gross Domestic Product. The SBA data shows that small businesses wereresponsible for over 66% of all net new jobs.

What is a better wayto invest a minimum of 23% of our tax dollars than to reinvest those funds withthe small businesses where most American's work?

Jobs and the economyare the single most important issue to American voters. The easiestway to create these jobs is to quit cheating the small businesses that generatethe majority of America's net new jobs.

There are so manywedge issues in American politics today, but ending federal contracting fraudagainst small businesses is one of them. I believe 99.9% of voters would agree that the federal governmentshould not cheat small businesses.

If I were running for president, I would promise Americans,the 28 million small businesses, including the small businesses owned by women,minorities and disabled veterans, and the millions upon millions of Americansthey employ, that I would ensure they will no longer be cheated under myadministration.

To view full press release, click here: http://www.prnewswire.com/news-releases/an-open-letter-to-donald-trump-from-american-small-business-league-president-lloyd-chapman-300260740.html


An Open Letter to Senator Ted Cruz from the American Small Business League President Lloyd Chapman

Press Release

An Open Letter to Senator Ted Cruz from the American Small Business League President Lloyd Chapman

American Small Business League
May 2, 2016

The American Small BusinessLeague (ASBL) has sent letters to DonaldTrump, Senator Cruz, Governor Kasich, Secretary Clinton and Senator Sanders in theform of national press releases asking them to pledge to keep a campaignpromise President Obama made in 2008.

 

Responding to dozens of federalinvestigations and investigativereports in the media that found the Small Business Administration (SBA) wascheating small business out of billions in federal contracts and subcontractsPresident Obama released the statement, "It is time to end thediversion of federal small business contracts to corporate giants."

 

Since President Obama took office the diversion of billionsa month in federal small business contracts to Fortune 500 firms and corporategiants has continued. Every year of the Obama Administration the SBA Office ofInspector General headed by Obama appointee Peg Gustafson has named thediversion of federal small business contracts to large businesses as the numberone problem with the upper management at the SBA.

 

 The GovernmentAccountability Office uncovered over 5,000 large businesses receivingbillions in federal small business contracts in their investigation based oninformation provided by ASBL President Lloyd Chapman.

 

Hundreds of articles on the issue can be found on a widevariety of websites. The Associated Press anddozens of publications such as the LosAngeles Times, Miami Herald,WashingtonPost, GovernmentExecutive, and FederalTimes have all reported on the abuses at the SBA.

 

Most of the major national television news channels such as NBC, CBS, ABC, CNN, CNBC, MSNBC, FoxNews and RRTV haveproduced stories on the issue.

 

In May of 2015 government watchdog group Public Citizenreleased adamming investigative report on the fraud titled "Sleighted".Public Citizen found the SBA had used "accounting tricks [to] create [a] falseimpression that small businesses are getting their share of procurement money…"

 

In the ASBL's most recent legal victory over the Pentagon toexpose evidence of corruption and fraud in Pentagon small business programs,Federal Judge William Alsup stated "The Purpose ofthe Freedom of Information Act is so the public can see how our governmentworks. Congress passed this law to make small businesses have access to some ofthese projects, andhere is the United States covering it up."

 

Research by the ASBL indicates over the last ten years the nations 28 million small businesses may have been defraudedout of up to two trillion in federal contracts and subcontracts.

 

In 2014 American Express Open Forum named Lloyd Chapman oneof the four strongest voices for small businesses in America for hiscampaign to end fraud in federal small business programs. The ASBL plans torelease a documentaryof the history of fraud at the SBA this summer.

 

To view full press release, click here: http://www.prnewswire.com/news-releases/an-open-letter-to-senator-ted-cruz-from-american-small-business-league-president-lloyd-chapman-300260751.html