The Small Business Administration and the Justice Department are threatening to file suit against Petaluma-based American Small Business League for using the SBA official seal in a way that the government contends violates federal law.

The SBA seal appears on the American Small Business League Web site on an excerpt of an investigation from the SBA's Office of Inspector General.

The ASBL's position is that the SBA's seal is not being used for any commercial purpose and does not appear in any way that would indicate an SBA endorsement.

The SBA Inspector General investigation in question found, "agencies are counting awards made to large firms towards their small business procurement goals."

ASBL President Lloyd Chapman says he believes newly appointed SBA Administrator Steven Preston prompted the threat of litigation against the ASBL to retaliate for the ongoing legal battle between the SBA and the ASBL.

The ASBL has won two federal lawsuits against the SBA to force the disclosure of information that the SBA and General Services Administration were aware of widespread fraud and abuses in federal small business contracting programs.

The ASBL is currently suing the SBA to force the disclosure of the name of a major federal contractor that was recommended for debarment by the SBA Inspector General for felony contracting fraud.

"SBA Administrator Steven Preston is wasting his time and taxpayer money if he thinks this is going to intimidate me to stop our campaign in the media and the courts to prove the Bush Administration has cheated legitimate American small businesses out of billions in federal small business contracts," Mr. Chapman says.

"I hope they do sue me so the public can see the SBA is more concerned with covering up fraud and abuse than they are in trying to stop it," he says.

"We have no comment," the SBA says in an e-mail to CVBT.