Federal Injunction Against The SBA Thrown Out, Costing Small Businesses Billions of Dollars

Press Release

Federal Injunction Against The SBA Thrown Out, Costing Small Businesses Billions of Dollars

American Small Business League
October 19, 2016

PETALUMA,Calif., Oct. 19, 2016 /PRNewswire-USNewswire/ -- The American SmallBusiness League's (ASBL's) controversialinjunction against the Small Business Administration was thrown out today.

Aftera rocky litigation riddled with several eyebrow raising moments, (the SBA triedto reword the ASBL's accusations that they were not hitting their small businesscontracting goals, and the initial hearing was canceled at the last minute infavor of a private ruling) Judge Vince Chhabria has ruled against theinjunction. "This is not unexpected" says ASBL President LloydChapman, "This case would uncover over $2 trillion in fraud from the ObamaAdministration. If the Federal courts can't stop fraud in federal smallcontracting, where do you go?"

Federallaw mandates small businesses receive a minimum of 23%of all federal contracts. Within that goal are separate goals for smallbusinesses owned by women, minorities and service-disabled veterans.

TheASBL estimates that as opposedto the $276 billion legitimate small businesses should have received in 2015,they likely received between $35 to $40 billion or just 3% of all federalcontracts.

Inaddition, the ASBL seeks to stop the SBA from divertingbillions of dollars in federal small business contracts to Fortune 500 firmsand their subsidiaries.  

AGovernment Accountability Office investigation uncoveredthe SBA had falsified the government's compliance with the 23% small businesscontracting goal by including  billions of dollars in federal smallbusiness contracts to over 5,300 Fortune 500 firms and other large businesses.

ProfessorCharles Tiefer, one ofthe nation's leading experts in federal contracting law and former Commissionerof Wartime Contracting in Iraq and Afghanistan, submitted a declaration insupport of the ASBL case. "Today's ruling locked the courthouse doorwithout even giving this very real and meaningful suit its rightful day incourt," says Tiefer. "If the lawsuit had been allowed to get itsrightful day in court on the merits, the lawsuit would have required the SBA togive all small businesses -- and doubly so for minority, women-owned,and disabled veteran businesses -- a larger and proper share of federalprocurement." "Dismissing the suit frustrates the legitimate rightsof small businesses to their proper share of the true scale of governmentcontracting."

Toview full press release, click here: http://www.prnewswire.com/news-releases/federal-injunction-against-the-sba-thrown-out-costing-small-businesses-billions-of-dollars-300347877.html

 

 


American Small Business League continues fight against the federal government

News

American Small Business League continues fight against the federal government

By Dawn Geske
Northern California Record
October 12, 2016

PETALUMA– The American Small Business League (ASBL) has filed for an injunction to haltthe alleged falsifying of small business contracts by the federal government.

TheASBL filed the suit against the U.S. Small Business Administration (SBA)claiming that it is inaccurately showing that the federal government is incompliance with offering small businesses 23 percent of government contracts asoutlined by federal law. ASBL alleges that the SBA is inflating these numbersand that the government is actually in default in excess of $2 trillion overthe last 10 years in supplying these contracts to small businesses.

"Thereare 200 million small businesses in America," Lloyd Chapman, president andfounder of the ASBL, told the Northern California Record. "If we can winand force the government to redirect an additional $250 billion in thiseconomy, that will be the largest economic stimulus program in the history ofAmerica. It will create about 3 million jobs a year."

Whilethe suit aims to put a stop to the alleged falsifying of the small businesscontract goals that have been enacted, Chapman doesn't think his suit will beheard this time around.

"Ithink my case will be dismissed not because I don't have a valid case, butbecause the government is going to want to cover up these abuses," Chapmansaid. "I think it will be dismissed because the impact to the government willbe so significant."

Ifthe case is dismissed, Chapman doesn't plan to let it die. He has a strategy inplace to appeal the case to the U.S. Court of Appeals for the Ninth Circuit. 

"Iwill appeal it to the Ninth Circuit Court of Appeals and then I'll split it upinto actually two lawsuits," he said. "The government admitted in their filingsthat I did have the right to challenge the ruling."

Helpingthe ASBL case is professor Charles Tiefer, an expert in federal contracting lawand the former commissioner of wartime contracting in Iraq and Afghanistan.Tiefer wrote a declaration that has been submitted to the courts supporting theclaims made by the ASBL.

Accordingto Chapman, the reason small businesses are being overlooked in Washington isbecause big businesses control the government.

"Thedefense and aerospace industry and Fortune 500 firms want every penny that thegovernment spends to go to their pocket," Chapman said. "The only way to dothat is to shut down federal small business programs by creating loopholes thatallow the government to give money to Fortune 500 firms. The big businesseshave the power in Washington like you would imagine. They're the ones that havethe big lobbying firms. They're the ones that contribute to presidentialcampaigns and Senate and House races. The big businesses want all the money."

The ASBL expects aruling in the case by Judge Vince Chhabria in the next few days. The ASBL is anon-partisan, non-profit organization dedicated to giving a voice to smallbusinesses, which the organization says makes up 98 percent of businesses inAmerica.

To view full article,click here: http://norcalrecord.com/stories/511018025-american-small-business-league-continues-fight-against-the-federal-government

 


Canceled Federal Hearing on SBA Case Prompts Protest in San Francisco

Press Release

Canceled Federal Hearing on SBA Case Prompts Protest in San Francisco

American Small Business League
October 5, 2016

PETALUMA, Calif.,Oct. 5, 2016 /PRNewswire-USNewswire/ -- The hearingin a controversial federal injunction case that was filed inFederal District Court in San Franciscoagainst the Small Business Administration (SBA) has been abruptly canceled.

Professor Charles Tiefer, one of the nation's leading expertsin federal contracting law and former Commissioner of Wartime Contracting in Iraq and Afghanistan, submitted adeclaration to the court in support of the ASBL case.

"This case presents one of the small business community'smajor grievances," said Professor Tiefer after being notified the hearinghad been canceled. "Advocates for small business have a right to be heardabout how the share of small business in government contracts has been wronglyheld down."

The American Small Business League (ASBL) isseeking a federal injunction against the SBA to halt two illegal policies that haveshortchanged legitimate small businesses out of over $2trillion dollars in federal contracts over the last ten years.

Dozens of ASBL supporters representing minority, woman andservice-disabled veteran-owned small businesses planned on attending thehearing.  Upon being notified that the hearing was canceled, severalgroups decided to stage a protest in front of the San Francisco FederalCourthouse. Enraged by the rampant abuses uncovered in federal small businesscontracting programs, they want to bring this issue to the attention of thenational media.

Federal law mandates small businesses receive a minimum of 23% of all federalcontracts. Within that goal are separate goals for small businesses owned bywomen, minorities and service-disabled veterans.

The ASBL is seeking to stop the SBA'slongstanding policy of falsifying the federal government's compliance with the23% small business contracting goals by excluding the majority of the totalfederal acquisition budget from those calculations. The Congressional Budget Office reportedan acquisition budget of $1.2 trillion in 2015,which would mean small businesses are legally entitled to a minimum of $276 billion. In 2015, the SBA only used an acquisitionbudget of $370 billion, (a major decline from $1.2 trillion) thus inflating their numbers andfalsifying their claim that small businessesreceived 24.9% of all federal contracts in 2015.

The ASBL estimates that as opposed to the $276 billion legitimate small businesses should havereceived in 2015, they likely received between $35 to $40billion or just 3% of all federal contracts.

In addition, the ASBL seeks to stop the SBA from diverting billions of dollars infederal small business contracts to Fortune 500 firms and theirsubsidiaries.  

A Government Accountability Office investigation uncovered the SBA had falsified thegovernment's compliance with the 23% small business contracting goal byincluding  billions of dollars in federal small business contracts to over5,300 Fortune 500 firms and other large businesses.

In 2008, President Obama released the statement, "It is time to end the diversion offederal small business contracts to corporate giants."

Judge Chhabria is expected to issue his ruling within the nexttwo weeks to either allow the ASBL's case to move forward ordismiss the case as the SBA has requested.

To view full press release: http://www.prnewswire.com/news-releases/canceled-federal-hearing-on-sba-case-prompts-protest-in-san-francisco-300339640.html

 


Federal Judge Cancels Hearing in ASBL vs. SBA Injunction Case

Press Release

Federal Judge Cancels Hearing in ASBL vs. SBA Injunction Case

American Small Business League
October 4, 2016

PETALUMA,Calif., Oct. 4, 2016 /PRNewswire/ -- Federal District Court Judge VinceChhabria has canceled the October 6thhearing in San Francisco that had been scheduled in the federal injunction casethe American Small Business League (ASBL)had filedagainst the Small Business Administration (SBA). No specific reason was givenfor the cancelation of the hearing. The case will now be decided based on thebriefs that have been filed by both parties.

TheASBL was pursuing a federalinjunction to stop the SBA from divertingbillions of dollars a year in federal small business contracts to Fortune 500firms and thousands of other large businesses. In 2003, the GovernmentAccountability Office (GAO) uncovered the SBA had included billions of dollarsin federal contracts to over 5,300 large businessesto falsify the governments compliance with the 23% small business contractinggoal. Every year since 2005, the SBA Office of Inspector General has named thediversion of federal small business contracts to large businesses as the number one problem at the SBA.In 2008, President Obama released the statement, "It istime to end the diversion of federal small business contracts to corporategiants."

In2015, the SBA reported contracts to 151 Fortune 500 firms andtheir subsidiaries as small business contracts. Firms the SBA reported as smallbusiness included, Apple, General Electric, IBM, UPS, Hewlett-Packard, HomeDepot, Verizon, Bank of America, Target, Wells Fargo, Pepsi, CVS, Oracle,Raytheon, Microsoft and Procter & Gamble. 

TheASBL was also asking the court to grant an injunction to stop the SBA'slongstanding policy of excludingthe majority of the total federal acquisition budget to falsify compliance withthe 23% small business contracting goal. According to the CongressionalBudget Office, the total federal acquisition budget in 2015 was $1.2trillion, which would mean small businesses should have received a minimum of $276billion. The SBA used a number of less than $370 billion to claimsmall business received 24.9% of all federal contracts in 2015. The ASBL estimates that as opposedto the $276 billion legitimate small businesses should have received in 2015,they likely received between $35 to $40 billion or just 3% of all federalcontracts.   

ASBLattorney Robert Belshaw stated, "I'm disappointed that we won't get achance to present an oral argumentin front of the court. The issues in the case are of critical importance to thenation's 28 million small businesses. It would be unfortunate if the case wasdismissed based on a procedural technicality from the SBA. The merits of ourcase are very strong and we are looking forward to a favorable ruling based onthe strength of our briefs."

TheASBL and their supporters will be holding a protest in front of the FederalBuilding starting at 9:00a.m. Thursday, October 6th.

JudgeChhabria's ruling in the case is expected within the next two weeks.

Toview full press release, click here: http://www.prnewswire.com/news-releases/federal-judge-cancels-hearing-in-asbl-vs-sba-injunction-case-300338983.html