PETALUMA, Calif., July 20, 2006 /PRNewswire/ -- The House Small Business Committee is currently preparing to reschedule its debate on reauthorizing the Small Business Administration. Republican Chairman Don Manzullo's proposed resolution, H.R. 5352, has come under criticism by a number of small business groups for lacking any strong provisions to address widespread fraud and abuse in small business contracting.

In a recent Congressional hearing, SBA Inspector General Eric Thorson stated that the #1 management challenge facing the SBA is that large firms are receiving small business contracts and federal agencies are receiving credit for these awards.

A review of the Manzullo resolution revealed only the expansion of fines and penalties for small business fraud. Unfortunately, the SBA Inspector General has admitted that the SBA has never obtained criminal prosecution of a large business misrepresenting its size in order to obtain small business contracts.

"We don't need stiffer penalties we need current penalties enforced," stated Lloyd Chapman, President of the American Small Business League. "The Republican-controlled Congress has not proposed a single piece of legislation in three years to address the fraud and abuse documented in 13 federal investigations. Quite to the contrary, they continue to propose more and more loopholes that will only exacerbate the problem."

Rep. Manzullo is the primary sponsor of a controversial provision that will allow franchises of large corporations to be considered small businesses for the purposes of federal contracting.

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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