PETALUMA, Calif., April 17, 2006 /PRNewswire/ The Small Business Administration has capitulated after an eighteen month legal battle with the American Small Business League to obtain documents under the Freedom of Information Act. The SBA had fought the release of small business size standard protests that had been dismissed. These protests had been filed against firms accused of misrepresenting their size status in order to illegally receive Federal small business contracts. This is the second time in the past twelve months that the ASBL has prevailed in Federal court against the SBA.

The SBA was forced to release 102 dismissed protests that had been filed over an eighteen-month timeframe against firms whose small business status was challenged. The ASBL requested the documents because it believed a clear pattern would emerge of the SBA dismissing legitimate protests in order to protect large government contractors that receive small business awards. A preliminary review of the documents released as a result of the suit confirms that a large number were dismissed on minor technicalities. Furthermore, the SBA failed to follow up on the information provided with the protests that showed these large companies were receiving millions of dollars in contracts.

"Our findings confirm we were right on target with our concerns. The SBA has a history of withholding damaging information like this," stated Lloyd Chapman, President of the American Small Business League. "And this is just a sampling over an eighteen-month period. We believe this pattern of behavior goes back well over a decade."

Chapman added, "Hector Barreto claims that there would be severe penalties for firms misrepresenting their size to obtain small business contracts. Yet the documents we received indicate that the SBA is actually helping these firms to break the law. It's time for the Justice Department to investigate the SBA's handling of protests against large firms. We're talking about $119 billion in small business prime and subcontracts. Where is the oversight to protect small business?"

Chapman stated that he intends to file another lawsuit against the SBA later this week.

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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