PETALUMA, Calif.,Oct. 20, 2016 /PRNewswire-USNewswire/ -- The American Small BusinessLeague's (ASBL's) injunction against the Small Business Administration (SBA)was dismissed Tuesday October 18^th for lack of subject matterjurisdiction.

Federal DistrictJudge Vince Chhabria has granted the SBA's motion to dismiss the case stating, "The upshot isthat Congress enacted a statute requiring the Small Business Administration toprovide information about the participation of small businesses in federalcontracting. If the Small Business Administration is giving Congress badinformation, then Congress can do something about it, either in an oversight orlegislative capacity."  

"This isnot unexpected," says ASBL President Lloyd Chapman,"This case would uncover billions in fraud in federal small businesscontracting programs. If the Federal courts cannot stop fraud in federal smallcontracting, where do you go?"

The SmallBusiness Act mandates small businesses receive a minimum of 23% of all federal contracts. Within that goalare separate goals for small businesses owned by women, minorities andservice-disabled veterans.

The Congressional Budget Office reported an acquisition budgetof $1.2 trillion in 2015. Twenty-three percent (what small businesses arelegally entitled to) would equal a minimum of $276 billion. In 2015, the SBAonly used an acquisition budget of $370 billion, a major decline from the $1.2trillion. The ASBL estimates that as opposed to the $276 billion legitimatesmall businesses should have received in 2015, they likely received between $35to $40 billion or just 3% of all federal contracts.

A GovernmentAccountability 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.

Professor CharlesTiefer, one of the nation's leading experts in federal contracting law andformer Commissioner of Wartime Contracting in Iraq and Afghanistan, submitted adeclaration in support of the ASBL case. "If the lawsuit had been allowedto get its rightful day in court on the merits, the lawsuit would have requiredthe SBA to give all small businesses -- and doubly so for minority,women-owned, and disabled veteran businesses -- a larger and proper shareof federal procurement."

The ASBL will beappealingthe case to the 9^th Circuit Court of Appeals.

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