Again in 2008 as in previous years, federal tax dollars failed to flow to American small businesses as mandated by law, according to a report Friday from the Small Business Administration.

Just one federal agency out of 25 – the General Services Administration – met its small business contracting goal, the SBA says.

Two agencies that spend tax money didn’t make any of their goals: the Agency for International Development and the Office of Personnel Management.

Federal law says the 25 agencies must spend 23 percent of their purchasing budgets with small businesses. The figures in the past have been disputed with critics pointing out that billions of dollars meant for small businesses have gone instead to some of the nation’s largest firms.

Although goals were not met last year, the SBA contends at least it’s an improvement.

“Small businesses won a record $93.3 billion in federal prime contracts in Fiscal Year 2008 (Oct. 1, 2007-Sept. 30, 2008), an increase of almost $10 billion from 2007,” it says in a press release Friday.

“In addition, small disadvantaged businesses, women-owned businesses and service-disabled veteran-owned businesses increased their share of federal contracting dollars by at least $1 billion to $3 billion,” the SBA says.

In terms of dollars spent, the $93.3 billion represents 21.5 percent of some $434 billion in spending last year covered by the law. In 2007, the figure was 22.0 percent and in 2006 it was 22.8 percent.

But those earlier numbers were riddled with errors, critics have said. “Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts have been awarded to Fortune 500 firms and some of the largest corporations in the United States and Europe,” says the American Small Business League of Petaluma.

“This record $93.3 billion in contracts to small businesses is significant, however, across the federal government we are committed to ensuring that the 23 percent goal is met and even exceeded going forward,” says SBA Administrator Karen Mills. “Especially during these tough economic times, federal contracts for small businesses can be just the opportunity they need to continue to grow and create jobs.”

But the head of the ASBL believes the books are cooked.

"Despite all of President Obama's pre- and post-campaign rhetoric regarding small businesses, the fact is that the Obama Administration is allowing approximately $400 million a day in federal small business contracts to be awarded to Fortune 500 firms and some of the largest corporations in the world," ASBL President Lloyd Chapman says.

"The fact that the Obama Administration is awarding small business contracts to Fortune 500 corporations cannot be denied. It is irrefutable. I challenge anyone in the country to prove me wrong. In my mind, the Obama Administration is anti-small business, and we all need to stop listening to what they say, and start looking at what they do," Mr. Chapman says.

Source:  http://www.centralvalleybusinesstimes.com/stories/001/?ID=12872