Petaluma, Calif. – On Tuesday, May 27, the Small Business Administration (SBA) surprised small business owners around the country by announcing they will hold crucial public meetings regarding a comprehensive review of small business size standards in Washington D.C. on June 3^rd. Small business size standards are one of the most important topics concerning small federal contractors because they will determine which companies will be able to participate in federal small business contracting programs.

 

SBA critics believe the extreme short notice of the meetings is no accident, and was designed to make it more difficult for firms and organizations outside of the Washington D.C. area to be in attendance. Notice of such meetings is normally given months in advance. With such short notice, the input from the meetings will be dominated by subsidiaries of Fortune 1000 firms and large firms in the D.C. area that currently receive a major portion of all federal small business contracts. Lobbyists and trade groups that support large businesses in the IT industry are also expected to attend.

 

Since 2002, a series of federal investigations have found that the Bush Administration has inflated the government’s small business contracting data by including billions of dollars in awards to Fortune 1000 firms and other large businesses. SBA critics expect the meetings to result in new higher small business size standards that allow larger firms to continue to receive the lion's share of federal small business contracts.

 

The meetings will cover small business size standards in two groups. One involving size standards based on annual receipts and the other will cover size standards based on the number of employees.

 

During the last three years, the SBA has received thousands of comments from small business owners, chambers of commerce and small business advocacy groups across the country calling on the SBA to reduce small business size standards. In 2005, the SBA received a record volume of comments from the public supporting a reduction in the small business size standard for non-manufacturing firms from 500 to 100 employees. (http://edocket.access.gpo.gov/2005/05-9428.htm)

 

The SBA has consistently ignored public outcry in favor of reducing small business size standards and removing large firms from federal small business contracting programs. In June of 2007, SBA Administrator Steven Preston ignored thousands of public comments opposing the SBA grandfathering plan by implementing a policy that will allow large businesses in the United States and Europe to continue to receive federal small business contracts until the year 2012.

 

The surprise meetings are being viewed as a start to another Bush Administration attempt to disassemble small business contracting programs. After the hearings the SBA will likely propose significant increases in small business size standards that will favor many large firms in the D.C. area.

 

The American Small Business League (ASBL) is preparing a national campaign to counter the Bush Administration’s attempt to dismantle small business programs by allowing large businesses to compete for small business contracts. The ASBL recently won its fourth federal lawsuit against the SBA and is currently exploring legal remedies to stop the Bush Administration from further damaging small business programs.

 

Democratic Presidential Candidate Barack Obama has issued a statement opposing the diversion of federal small business contracts to large businesses. In January of this year, Senator Obama stated, "It is time to stop the diversion of federal small business contracts to corporate giants." ASBL plans to enlist Senator Obama's support to stop the Bush Administration's efforts to divert federal small business contracts to Fortune 1000 firms and other large businesses.