PETALUMA, Calif.--(BUSINESS WIRE)--The American Small Business League (ASBL) was founded in 2004 on the principle that small businesses are the backbone of a vital American economy and should receive a fair portion of the total value of all prime contracts. ASBL President Lloyd Chapman issued the following open letter to Kelly Loeffler:
Congratulations on being nominated to serve as the administrator for the Small Business Administration. Since over 99% of all businesses in America are small businesses, the SBA is clearly one of the most important agencies in our government. President Trump should restore the SBA’s budget and staff to a more appropriate level for the only agency in our government to support the 34 million small businesses that are responsible for over 98% of all net new jobs in America and where most Americans are employed.
The Small Business Act is the largest economic stimulus program ever passed by Congress to create jobs and direct federal spending to the middle class. Over the last two decades, a long series of federal investigations and investigative reports in the media have exposed a pattern across all federal agencies and at the SBA where contracts to Fortune 500 firms and thousands of clearly large businesses were reported as small business awards. These erroneous classifications of large corporations misrepresented the actual volume of federal contacts that were awarded to legitimate small businesses.
In 2005, the SBA’s own Office of Inspector General released Report 5-15 that stated, “One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards.” That problem still exists. You will have the power to end the diversion of federal small business contracts to Fortune 500 firms and thousands of clearly large businesses to ensure that legitimate small businesses are the only firms the SBA reports as receiving small business awards.
Over the last two decades, I have won dozens of legal battles against the SBA over the agency's refusal to release the names of all the firms the SBA included in its calculations on compliance with federal small business contracting goals. You have an opportunity to foster a new era of honesty and transparency at the SBA where the American people have the right to see how their tax dollars are being spent. The American people should not have to wage lengthy and expensive legal battles just to see the names of firms the SBA is reporting as having received federal small business contracts.
I hope you will commit to supporting woman-owned small businesses by creating opportunities for them to receive a more equitable share of all federal contracts and subcontracts. Women are 50% of the population and they own 42% of the businesses in America. For decades, companies owed by men have consistently received over 95% of all federal contracts and subcontracts. Women pay their taxes just like men, and giving firms owned by men over 95% of all federal contracts and subcontracts is unjust and inequitable.
Robert F. Kennedy Jr. released his, “Small Business, Big Middle Class” economic stimulus plan during his presidential campaign. He proposed to increase the federal goal for woman-owned small businesses up to 25%. Although that would still give firms owned by men 75% of all federal contracts and subcontracts, it would be much more equitable than the 95% male owned firms are currently receiving. At the American Small Business League, we have launched the Don’t Cheat Women campaign to end the discrimination against woman-owned small businesses in federal contracting.
Your leadership can help usher in a new era of honesty and transparency at the Small Business Administration that will help to truly Make America Great Again for the over 99% of all firms in America that are small businesses.
Sincerely,
Lloyd Chapman
President, American Small Business League
About American Small Business League (ASBL): The American Small Business League was formed in 2004 with the goal of helping the nation’s 30 million+ small businesses and small businesses owned by women, minorities and service disabled veterans. The ASBL was founded on the principle that small businesses are the backbone of a vital American economy and should receive a fair portion of the total value of all prime contracts as mandated by the Small Business Act of 1953. For more information, visit asbl.com.
