Press Release
SBA Forced to Release Damaging Report
October 9, 0
After a lengthy legal battle with the American Small Business League, the Small Business Administration has been forced to release portions of a damaging report on federal small business contracting. The report shows that billions of dollars intended by Congress for small businesses have gone to the largest corporations in the world. While small businesses struggle to compete for contracts with the Federal Government, companies with revenues exceeding $1 billion such as the Carlyle Group, Raytheon and General Dynamics are receiving small business contracts. The report clearly shows that SBA policies have allowed some of America's largest companies to receive small business contracts totaling over $2 billion in FY2002.
The SBA continues to refuse to release the most damaging parts of the report. American Small Business League President, Lloyd Chapman, vows to keep fighting until the full report is released. Chapman believes the original draft report shows blatant fraud in federal small business contracting programs. According to Chapman, "The SBA continues to refuse to take any action to stop even the most blatant cases of felony contracting fraud.
Even the SBA's own Inspector General reported widespread fraud in their semi-annual report as early as 1995. This continued level of abuse of small business programs could not have happened without SBA's knowledge."
Through the American Small Business League, Chapman prompted a GAO investigation into contracting fraud in 2003. The GAO investigation found that small business contracts were awarded to some of the largest firms in the U.S. SBA's response to the allegations of fraud has been to blame it on miscoding and out-of-date information. Chapman's group wants to know what it will take before the SBA actually takes action against the fraud. "The small business community is tired of the SBA's lame excuses and wants them to take some action to stop this fraud. I intend to do whatever it takes, for as long as it takes, to end this so-called miscoding and misinformation that has directed billions of dollars from the small business community to large businesses."
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