The American Small Business League (ASBL) continues its quest to prove that the U.S. Small Business Administration is doing all the things it shouldn't be - in particular, giving large corporations federal contracts that should be going to small businesses.
The latest episode of this political small business soap opera began when Administrator for the SBA Jovita Carranza told the New York Times, "The S.B.A. helps small businesses get government contracts. In 2006 (the last year with published data), small businesses reached a record level of federal contracts. Small businesses owned by women experienced their largest year of growth and hit a record level. Small disadvantaged businesses (generally minority-owned) hit a record level."
Well, that doesn't sound too crooked, but the ASBL insists that these claims are misleading.
A press release issued by the ASBL says:
In fact, the Bush Administration has done everything it can to dismantle programs designed to assist small businesses from nearly every socio-economic background. For example, in 2006, the Bush Administration closed the office at the SBA solely dedicated to helping veteran-owned small businesses; and for the last 7 years it has refused to implement the congressionally mandated women-owned set-aside program.
After numerous other knocks against the SBA like the whole giving contracts to big companies fiasco and the ordering of the court for the SBA to turn over incriminating data including a list of company names that received said contracts (like HP and Lockheed Martin), the ASBL wraps things up by predicting further dismantling of small business programs before the end of the current presidency.
Entrepreneurs Honored During Small Business WeekAmerican Small Business League Takes SBA to CourtUpcoming Small Business Event RoundupSBA Wanting to Bring Big Businesses to Small Business Contracts?Some Upcoming Small Business EventsASBL: SBA Will Start Damage ControlSmall Business Week Comes to a CloseBig Business Got Federal Small Biz ContractsNational Small Business Week BeginsAmerican Small Business League Supports Obama | |||
| Do you have a business site? Submit your business related site FREE! | |||
| |||
Comments
SBA Supports Large Business
It has recently become even easier for large businesses to secretly obtain small business contracts. Under the 8(a) mentor protégé regulations, large businesses can mentor 8(a) certified small businesses and form joint ventures to bid on 8(a) and small business contracts. Two recent rulings by the SBA and the Office of Hearings and Appeals (SES TECH and Luke) have opened the door for abuse by eliminating the requirement for SBA approval of joint ventures for small business contracts under the mentor protégé program. In essence, once a mentor protégé agreement is approved by the SBA, the large business can simply push the protégé to the side by paying them off or giving them a token amount of work. There are no approvals or controls required other than the mentor protégé agreement. The beauty of this for large businesses is that the large business reaps the benefits making big bucks but stays under the radar by not having its name publicized. Priceless.
Post new comment