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Tuesday, May 22, 2007

Fact 8: SBA Myth vs. Fact Press Release Debunked by American Small Business League

Fact 8. Since 2002, 14 federal investigations have found billions of dollars have been diverted from legitimate small businesses to Fortune 1000 companies and subsidiaries across the country.

Proof- The SBA’s assertion that there have not been 14 federal investigations is blatantly false. These reports and key statements are readily available on the ASBL website. In this response the SBA tries again to mislead by diverting attention from the fact that only a very small percentage of the contracts that the federal government reports as going to small businesses are actually formal set aside contracts. Again, the SBA fails to mention, that the policy allowing Fortune 1000 firms to acquire a small business and keep the small business status for 20 years was originally drafted by the SBA.

Again, SBA Inspector General Reports 5-14, 5-15 and 5-16 all found large businesses were receiving federal small business contracts. The Eagle Eye report from the SBA Office of Advocacy found “vendor deception” -- more evidence of fraud. A report from the Center for Public Integrity found the Pentagon alone had awarded over $47 billion in small business contracts to some of the nations largest defense contractors. Investigative reports by ABC, CBS and CNN all found Fortune 1000 firms were receiving billions of dollars in federal small business contracts to Firms like Boeing, Lockheed Martin, Raytheon, Titan Industries, L3 Communications, Rolls Royce and AT&T who did not recently out grow their small business status.

1 comment:

Anonymous said...

Unbelievable, I cannot believe the SBA denied the 14+ investigations when the proof is at everyone’s fingertips online.