PETALUMA, Calif., July 19, 2006 /PRNewswire/ New SBA Administrator Steven Preston is refusing to release the list of the firms that were coded as small businesses in fiscal year 2005. In a press release issued by the Small Business Administration last month, then Administrator Hector V. Barreto announced that a "record-breaking" $79.6 billion in contracts was awarded to small businesses in 2005. What he failed to point out was that some of the largest firms in the world, such as Boeing, Lockheed, Northrop Grumman, Bechtel, General Dynamics, and hundreds of other large companies were included in the numbers.

"I'm afraid that it's going to be business as usual at the SBA with Preston at the helm," stated Lloyd Chapman, President of the American Small Business League. "I would hate to see another two years of the SBA trying to cover up the fact that the Bush Administration has intentionally allowed billions in small business contracts to be diverted to giant corporations."

Chapman added, "Mr. Preston needs to pay attention to his own Inspector General who has identified this problem as the #1 management challenge facing the SBA for 2006. Releasing the names of contractors that received small business awards is the first step in addressing this major problem."

In a recent Congressional hearing, new SBA Inspector General Eric Thorson reported in detail the reasons why the government is reporting awards to large firms as small business contracts. Mr. Thorson called for new policies, legislation, and controls to stop the fraud and abuse, including establishing an office to monitor contract integrity and compliance by federal agencies. The American Small Business League urges Congress and the SBA to enact these proposals.

About the ASBL

The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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