Not only have many small businesses watched their profits decline over the last year as consumers keep cash tucked firmly in their wallets, but many have also had trouble accessing business loans to help bridge the gap until economic recovery begins.

Small businesses unable to obtain necessary financing from traditional banks have more frequently turned to nontraditional lenders for short-term relief.

But in addition to battling these cash flow woes, one small business advocate has brought to light the fact that small firms have been increasingly competing with bigger companies for what should be government contracts allocated only to small businesses.

The American Small Business League has been vocal in its concerns that the Obama administration and small business leaders within the federal government are going to funnel traditionally small business contracts to venture capitalists and Fortune 500 firms.

The small business advocate announced that it had a hand in writing new legislation being introduced to the House of Representatives that would end the diversion of federal small business contracts to other players.

The ASBL claims that billions of dollars in small business federal contracts are handed to larger firms each year.

Source:  http://capitalsolutionsbancorp.com/news/small-businesses-to-benefit-from-new-legislation-20090603