ASBL's Lloyd Chapman Challenges SBA Over Anti-Small Business Policies

Press Release

ASBL's Lloyd Chapman Challenges SBA Over Anti-Small Business Policies

By Lloyd Chapman
American Small Business League
October 9, 9600

PETALUMA, Calif., Oct. 28, 2014/PRNewswire-USNewswire/ -- The Small Business Administration (SBA) has proposed some sweeping new policy changesthat have small business owners across the country up in arms.

American Small Business League (ASBL) President, Lloyd Chapman, has launched a nationalcampaign to oppose a specific policy change the SBA is proposing that coulddevastate over 12,000 small businesses in the Information Technology (IT)industry.

In 2002 the SBA proposed a new small business size standardfor small businesses in the IT industry that would have raised the federaldefinition of a small business from a maximum of 100 employees to 500 employees.

Chapman launched a nationalcampaign that garnered a record number of comments opposing the SBA's500-employee size standard. Up to that point in time the SBA normally receivedless than 50 comments on any proposed policy change. Chapman's campaign rallied a record 1400 comments opposingthe new SBA 500 employee size standard that would have forced thousands oflegitimate small IT firms out of business. Based on U.S. Census Bureau data theaverage number of employees for small businesses in the IT industry hasremained constant for the last two decades at less than 20 employees.

Computer Reseller News published a story chroniclingChapman's successful national campaign to force the government to drop theInformation Technology Value Added Reseller size standards from 500 to 150 employees. The 150 employee size standardhas allowed thousands of small IT firms to grow and flourish in the federalmarketplace.

Now the SBA is once again trying to increase the federal definitionof a small business in the IT industry back up to 500 employees which is morethan 25 times higher than the overwhelming majority of small businesses in the industry.Chapman has assembled a top-notch legal team to challenge theSBA. In addition to their attorney Robert Belshaw,the ASBL has also retained the services of Professor CharlesTiefer, one of the nation's leading experts on federalcontracting law.

In January of 2014 several journalist agreed with Chapman that President Obama was attempting to close the SBA.

"A long series of federalinvestigations and investigative reports in the mainstreammedia have uncovered rampant fraud and abuse in federal small businessprograms. The SBA's justifications for changing these small business size standardsare absurd and completely inconsistent with all available economic data. Thisis just the latest attempt by Washingtonbureaucrats to dismantle the SBA to cover up the rampant fraud that has been uncovered inevery SBA managed program," Chapman stated.

The SBA will be taking public comment on increasing small business sizestandards until Nov. 10.

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