PETALUMA, Calif., October 4th, 2006 /PRNewswire/ -- The Small Business Administration and the Justice Department are threatening to file suit against the Petaluma, California based American Small Business League. The SBA is claiming the American Small Business League is using the SBA official seal in a way that violates federal law. The SBA seal appears on the American Small Business League website on an excerpt of an investigation from the SBA's Office of Inspector General. The ASBL's position is that the SBA's seal is not being used on their website for any commercial purposes, nor does it appear in any way that would indicate an SBA endorsement.

The SBA Inspector General investigation in question found, "agencies are counting awards made to large firms towards their small business procurement goals". The SBA was one of the federal agencies found to be falsifying their small business contracting statistics. The SBA Inspector General found the SBA had reported millions in awards to several large businesses, including Dutch conglomerate, Buhrmann NV, towards their small business contracting goals.

ASBL President Lloyd Chapman believes newly appointed SBA Administrator Steven Preston prompted the threat of litigation against the ASBL to retaliate for the ongoing legal battle between the SBA and the ASBL. The ASBL has won two federal law suits against the SBA to force the disclosure of information that the SBA and General Services Administration were aware of widespread fraud and abuses in federal small business contracting programs. The ASBL is currently suing the SBA to force the disclosure of the name of a major federal contractor that was recommended for debarment by the SBA Inspector General for felony contracting fraud.

ASBL President Lloyd Chapman stated, "SBA Administrator Steven Preston is wasting his time and taxpayer money if he thinks this is going to intimidate me to stop our campaign in the media and the courts to prove the Bush Administration has cheated legitimate American small businesses out of billions in federal small business contracts."

"The SBA's own Inspector General has found firms that are guilty of blatant felony contracting fraud and instead of going after those firms they are harassing me with this ridiculous threat. I hope they do sue me so the public can see the SBA is more concerned with covering up fraud and abuse than they are in trying to stop it."

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.