Petaluma, Calif. - The American Small Business League(ASBL) has filedfor an injunction in Federal District Court in San Francisco to stop twospecific Small Business Administration (SBA) policies the ASBL believes havedefrauded small businesses including  women-owned, minority-owned and disabledveteran-owned small businesses out of hundreds of billions of dollars infederal contracts.

The Small Business Act requires that small businesses shallreceive a minimumof 23% of the total value of all prime contract awards each year.

The SBA created a policy they call their "exclusionaryrule" which excludes billions of dollars in federal contracts from theircalculations to significantly inflate the percentage of awards to allcategories of small businesses. The CongressionalBudget Office indicates a total discretionary budget of $1.2 trillion forfiscal year 2015. Professor Charles Tiefer, one of the nation's leadingauthorities on federal contracting law, has issued a legal opinion putting thetotal annual federal acquisition budget at well over $1trillion dollars.

The SBAfalsely claimed the federal government achieved all its small businesscontracting goals in fiscal year 2015 with women, minorities and disabledveterans by using a federal acquisition budget of just $352billion.

The second policy the ASBL is hoping to eliminate is theSBA's longstanding practice of including billions in federalcontracts to Fortune 500 firms, their subsidiaries and thousands of otherlarge businesses in the volume of contracts they claim the federal governmentawarded to legitimate small businesses.

The SBA refers to this policy as their "five-year rule" or "grandfatheringrule". These policies were adopted shortly after a Congressionalinvestigation, conducted in 2003, where the Government Accountability Office(GAO) uncovered over5,300 large businesses including Fortune 500 firms were the actualrecipients of billions of dollars in federal contracts the SBA claimed had goneto small businesses.

The ASBL believes the SBA hurriedly adopted the"grandfathering rule" in an attempt to legitimize the rampant fraud and corruptionthat had been uncovered by the GAO.

In 2009, the GAO released Report 10-108 that seemed toaccuse the SBA of encouraging fraud in a federal programs. That investigationstated, "Byfailing to hold firms accountable the SBA and contracting agencies have sent amessage to the contracting community that there is no punishment orconsequences for committing fraud or abusing the intent of the SDVOSB program."

Some of the firms federal agencies have claimed weresmall businesses include, Rolls Royce, Hewlett-Packard, IBM, Oracle,Disney, Titan Industries, Wal-Mart, Home Depot, Bechtel, SAIC, Honda, Raytheon,Citigroup, Johnson & Johnson, General Electric, Microsoft and BritishAerospace.

The ASBL Believes if their injunction is granted federalcontracts to all categories could increase by well over $100 billion a year.

ASBL attorney Robert Belshaw stated, "I think we have a verystrong case here. I think the SBA is going to have a difficult time convincingthe court Fortune 500 firms are small businesses."

To view the full press release, click here: http://www.prnewswire.com/news-releases/federal-injunction-filed-by-asbl-against-sba-could-boost-funds-for-small-businesses-by-billions-300263317.html