SmallBusinessNewz

The American Small Business League (ASBL) is making waves in the sea of small business contracts once again.

Known for its persistent criticism of the Small Business Administration (SBA), the ASBL is calling out the House Committee on Small Business this time, and in particular Committee chairperson Nydia M. Velzquez.

The ASBL is attacking a bill getting ready to come out of the House Committee that would allow the biggest VC firms in the United States to participate in federal programs designed to assist small businesses.

Ulterior Motives?

While the bill appears to be created to aid the Small Business Innovation Research Program, the ASBL believes it is really just a way to create a loophole that will allow these VCs to receive billions of dollars in federal small business contracts each year.

According to the ASBL, the new bill could have "devastating consequences" for thousands of small businesses, as it would amend the Small Business Act by redefining small business as "independently owned and operated" to include firms owned up to 49.9% by a VC firm.

A Continuing Reputation

"This is the second time Rep. Velzquez has tried to create a loophole that will allow billionaire venture capitalists to steal federal small business contracts," said ASBL President Lloyd Chapman.

The first time Chapman refers to would be the Small Business Investment Expansion Act of 2007, which would have allowed VC firms to own controlling interest in a firm, had it not been strongly opposed by small business groups around the country.

Chapman continued, "Velzquez is masquerading as a small business advocate while taking contributions from the National Venture Capital Association and then trying to pass legislation to give them billions of dollars in federal small business contracts. When congress passed the Small Business Act, I guarantee you that it was not their intention to allow billion dollar venture capital firms to receive federal small business contracts."

Lacing Up the Gloves

Chapman went on to say, "This is a prime example of what the American people hate about Congress and the special interest groups. Representative Velzquez and the billion dollar venture capital firms that think they can buy legislation to steal federal small business contracts from America's 26 million small businesses are in for a fight."

The ASBL certainly does always seem to be ready for a fight.