by Lloyd Chapman
I have been responding to the SBA’s farcical public comment sham for close to fifteen years.
Over that time, the SBA has adopted an unending stream of policies that are designed to dismantle federal programs for legitimate small businesses and adopt policies that allow federal agencies to report contracts to larger and larger firms as small businesses contracts.
Today, the SBA uses those policies to falsify and fabricate the federal governments compliance with the 23% small business contracting goal by reporting billions in federal contracts to Fortune 500 firms and some of the largest firms in the world as going to small businesses.
My comment is to eliminate two SBA policies that are illegal and in direct violation of the Small Business Act.
I recommend the SBA policy which was originally called the “grandfathering policy” be eliminated. The SBA has used this policy to fabricate the governments compliance with the 23% small business contracting goal for over 15 years. By using this policy, the SBA includes billions in federal contracts to Fortune 500 firms, their wholly owned subsidiaries and thousands of large businesses in the volume of federal contracts they report were awarded to small businesses. This policy has cheated legitimate small businesses out of hundreds of billions if not trillions in federal contracts over the last decade and should be eliminated.
The second SBA policy I recommend eliminating is the “exclusionary rule”. Using this policy, the SBA has fabricated the true percentage of federal contracts that are awarded to small businesses each year by excluding hundreds of billions in federal acquisitions from their calculations. The Small Business Act mandates small businesses receive a minimum of 23% of the total value of all federal contracts. There is no language in the Small Business Act that would allow the SBA to exclude the vast majority of all federal acquisitions from their calculations to fabricate compliance with the 23% small business contracting goal.
The SBA has a long-standing track record of manipulating and ignoring public comments to adopt more and more blatant anti-small business policies. I am confident every change the Pentagon dominated leadership of the SBA makes will further dismantle the largest and most efficient economic stimulus program ever adopted by Congress for middle class Americans, the Small Business Act.
Lloyd Chapman, President, American Small Business League