American Small Business League continues fight against the federal government


American Small Business League continues fight against the federal government

By Dawn Geske
Northern California Record
October 12, 2016

PETALUMA– The American Small Business League (ASBL) has filed for an injunction to haltthe alleged falsifying of small business contracts by the federal government.

TheASBL filed the suit against the U.S. Small Business Administration (SBA)claiming that it is inaccurately showing that the federal government is incompliance with offering small businesses 23 percent of government contracts asoutlined by federal law. ASBL alleges that the SBA is inflating these numbersand that the government is actually in default in excess of $2 trillion overthe last 10 years in supplying these contracts to small businesses.

"Thereare 200 million small businesses in America," Lloyd Chapman, president andfounder of the ASBL, told the Northern California Record. "If we can winand force the government to redirect an additional $250 billion in thiseconomy, that will be the largest economic stimulus program in the history ofAmerica. It will create about 3 million jobs a year."

Whilethe suit aims to put a stop to the alleged falsifying of the small businesscontract goals that have been enacted, Chapman doesn't think his suit will beheard this time around.

"Ithink my case will be dismissed not because I don't have a valid case, butbecause the government is going to want to cover up these abuses," Chapmansaid. "I think it will be dismissed because the impact to the government willbe so significant."

Ifthe case is dismissed, Chapman doesn't plan to let it die. He has a strategy inplace to appeal the case to the U.S. Court of Appeals for the Ninth Circuit. 

"Iwill appeal it to the Ninth Circuit Court of Appeals and then I'll split it upinto actually two lawsuits," he said. "The government admitted in their filingsthat I did have the right to challenge the ruling."

Helpingthe ASBL case is professor Charles Tiefer, an expert in federal contracting lawand the former commissioner of wartime contracting in Iraq and Afghanistan.Tiefer wrote a declaration that has been submitted to the courts supporting theclaims made by the ASBL.

Accordingto Chapman, the reason small businesses are being overlooked in Washington isbecause big businesses control the government.

"Thedefense and aerospace industry and Fortune 500 firms want every penny that thegovernment spends to go to their pocket," Chapman said. "The only way to dothat is to shut down federal small business programs by creating loopholes thatallow the government to give money to Fortune 500 firms. The big businesseshave the power in Washington like you would imagine. They're the ones that havethe big lobbying firms. They're the ones that contribute to presidentialcampaigns and Senate and House races. The big businesses want all the money."

The ASBL expects aruling in the case by Judge Vince Chhabria in the next few days. The ASBL is anon-partisan, non-profit organization dedicated to giving a voice to smallbusinesses, which the organization says makes up 98 percent of businesses inAmerica.

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