PETALUMA, Calif., June 7, 2006 /PRNewswire/ The latest statistics on Federal small business contracting show the lowest participation by small businesses in recent history. According to current government figures, small businesses received a meager 17% of the total value of Federal contracts during fiscal year 2005. This number represents the lowest level of Federal contracts that have been awarded to small businesses in the past 20 years.

The Small Business Act of 1953 requires that 23% of Federal contracts goes to small businesses. Last year, the SBA reported that 23.09% of contracts were awarded to small firms during FY 2004.

Although President Bush has repeatedly pledged his support to America's entrepreneurs, this statistic paints a different picture. The fact that the percent of small business contracts has dropped from 23% to 17% in only one year appears to indicate a lack of commitment by the Bush Administration to offer small business owners a fair opportunity to do business with the government.

Lloyd Chapman, President of the American Small Business League points to eleven Federal investigations and two private studies that have found fraud, abuse, and lack of oversight in small business contracting. The SBA's own Inspector General uncovered outright fraud in small business contracting and in Report 5-15 called the diversion of Federal small business contracts, "One of the biggest problems facing the SBA and the entire Federal government today . . ." In report 5-20, the Inspector General also found that the SBA has done nothing to stem the growing use of large, multiple-award contracts (or "bundling") that significantly reduce the opportunities for legitimate small businesses to participate in the Federal procurement process.

"This information should sound an alarm to small business groups around the country that President Bush is serious about shutting down the SBA. It's time for small business owners around the country to wake up and see what's happening and begin to fight," stated Chapman. "People need to stop listening to what Bush says and start paying attention to what he is doing. President Bush is trying to end all programs that help small, women-owned, minority-owned, and veteran-owned businesses in order to divert more Federal contract dollars to the defense and aerospace industries."

The list of firms that received small business contracts includes the names of hundreds of large businesses. Among the top 100 recipients, over thirty firms were large, including giant defense contractors such as Science Applications International, General Dynamics, and Northrop Grumman. ASBL estimates that if all awards to large businesses were removed from the total, the small business number could decline to below 10%.

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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