Federal Injunction Case Could Impact Monthly Jobs Report

Press Release

Federal Injunction Case Could Impact Monthly Jobs Report

American Small Business League
September 1, 2016

PETALUMA, CA--(Marketwired -September 01, 2016) - A federal lawsuit that has been filed against the SmallBusiness Administration (SBA) could have an impact on the monthly jobs reportreleased by the Labor Department. A report by the SBA found that 90% of all U.S. firmshave less than 20 employees and those firms are responsible for up to 97% ofall net new jobs in America.

Federal law mandates that smallbusiness receive a minimum of 23% of allfederal contracts. American Small Business League (ASBL) research based oninformation from the Federal Procurement Data Systemand the Congressional Budget Officeindicates legitimate small businesses may be receiving as little as 3% of allfederal contracts.

If the ASBLwins their case, they estimate the nation's 28 million small businesses couldreceive an additional $240 billion a year infederal contracts and subcontracts.

ASBL President Lloyd Chapmanstated, "When we win this case it will redirect over one trillion dollarsin additional federal infrastructurespending to small businesses over the next five years. This shouldhave a noticeable impact on the monthly jobs report as those funds begin toflow to small businesses across the country. U.S. Census Bureau data and SBA data indicatesmall businesses are responsible for over 90% of net new jobs in America. Inreality, the monthly jobs report is predominantly the small business jobsreport."

The American Small BusinessLeague has filed the case against the SBA in federal district court in SanFrancisco. The ASBL is asking the courtto grant an injunction to stop theSBA from diverting federal smallbusiness contracts to Fortune 500 firms, their wholly owned subsidiaries andany other firms that would not currently qualify as small businesses underfederal law.

Mother Jones released anarticle on July 25th, titled, "Giant Corporations Reaping Billions in FederalSmall Business Contracts" that concurred with the ASBL's position.

The ASBL is also asking thecourt to stop the SBA from fabricating and inflating the percentage ofcontracts awarded to small businesses by excluding the vast majorityof federal acquisitions from their calculations. For 2015 the CongressionalBudget Office reported a total acquisition budget of 1.2 trillion. The SBA useda number of just $391 billion to claim small businesses received 24.9% of all federalcontracts that year.

A legal opinion from one ofthe nation's leading experts on federal contracting law, Professor Charles Tiefer agrees with the ASBLfindings the SBA has been excluded approximately two thirds of the federalacquisition budget from their calculations.

President Obama pledged to end the abuses at the SBA when hereleased the statement, "It is time to end the diversion offederal small business contracts to corporate giants."

The first court appearance inthe case will be on October 6, 2016, before Federal District Court Judge VinceChhabria.

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