PETALUMA, Calif., Nov. 19, 2014/PRNewswire-USNewswire/ -- In 2005, the Small Business Administration Office ofInspector General released Repot5-15 that stated, "One of the most important challenges facing theSmall Business Administration (SBA) and the entire Federal Government today isthat large businesses are receiving small business procurement awards andagencies are receiving credit for these awards."

Every year since 2005, every SBA Inspector General hasreiterated that the diversion of federal small business contracts to largebusinesses is still the number one problem at the SBA.

A long series of federalinvestigations have all uncovered many Fortune 500 firms have been theactual recipients of billions of dollars in federal small business contracts.The Associated Press reported on the problem in 2003. NBC, CBS, ABC, CNN, Fox Newsand RTTVhave also reported on the diversion of federal small business contracts tocorporate giants.

Some of the firms that have receivedfederal small business contracts include, Oracle, Hewlett-Packard, Dell,IBM, Verizon, Chevron, Apple, General Electric, AT&T, UPS, Bank of America,Citigroup, J.P. Morgan Chase & Co., Home Depot, Wells Fargo, L-3Communications, Microsoft, Pepsi, Boeing, Raytheon, Lockheed Martin, NorthropGrumman, General Dynamics, American Airlines and John Deere.

During his first campaign President Obama released thestatement, "Its time to end the diversion of federal small business contracts to corporategiants."

Congress has refused to pass any legislation such as theFairness and Transparency in Contracting Act (H.R. 1622)to stop large businesses from hijacking billions of dollars in federal smallbusiness contracts year after year.

Under section 16(d) of the Small Business Act the penalty for anylarge business that misrepresents itself to illegally received federal smallbusiness contracts is up to ten years in prison, a $500,000fine or both.

As opposed to passing any legislation to halt the illegaldiversion of federal small business contracts to large businesses, Congresspassed legislation that will likely encourage more fraud in federal smallbusiness programs. In the 2013 National Defense Authorization Act (NDAA),Congress approve the "safe harbor from fraud penalties" policy. Under thepolicy any large business that is uncovered illegally receiving federal smallbusiness contracts can avoid all penalties simply by claiming they "acted in good faith".

American Small Business League President, LloydChapman, launched anationalcampaign to oppose the policy. "It's very disappointing Congresshas refused to pass any legislation to stop the rampant fraud that has beenuncovered in federal small business contracting programs. It's absolutelyastounding that instead they passed legislation that will certainly increasefraud by adopting legislation that will actually protect fraudulent firms fromprosecution. It seems Congress has received more lobbying dollars from largefraudulent firms than America's 28 million legitimate small businesses."

The SBA is expected to release thefinal rule establishing the "safe harbor from fraud penalties"policy before the end of the year.

Here is a trailer about Lloyd Chapman'scrusade for his new documentary.

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