Small Business Group Renews Suit Challenging SBA's Goal Claims
By Charles S. Clark
November 18, 2016
The small but vocal American Small Business
League this week continued its long-standing
challenge to the Small Business Administration's claims that agencies
are meeting their statutory goals in awarding contracts to qualified small
In an appeal filed in the Ninth Circuit Court
in San Francisco, the group's attorney's challenged a May ruling in the case naming
SBA Administrator Maria Contreras-Sweet and seeking "injunctive and other
appropriate relief" to prevent the SBA from "continuing to misrepresent the
attainment of small business contracting goals to Congress and the American
The league has long charged that definitions
used by the SBA have allowed many large Fortune 500 companies through
subsidiaries to win contracts intended as set-asides for qualified small firms.
"Small Businesses are legally entitled
to 23 percent of the total federal contracting acquisition budget, which
is currently $1.2 trillion," a league spokesman said. "However, the SBA is only
allotting small business 23 percent of $352 billion, resulting in a small
business loss of over $180 billion."
The league's president, Lloyd Chapman, argues
that using the total federal acquisition budget in calculating the correct
percentage of federal contracts awarded to small businesses would raise the
small business share to 23 percent of more than $1 trillion.
Asked for comment, an SBA spokesman said, "We
stand by the ruling of the United States District Court for the Northern
District of California."