PETALUMA, Calif., Oct. 21, 2014 /PRNewswire-USNewswire/ -- If a new round of policies proposed by the federal government are adopted thousands of big businesses could push thousands of legitimate small businesses out of the federal market place and out of business.
The new pro-big business polices were proposed by the Small Business Administration (SBA) on Sept. 10. According to the latest data from the U.S. Census Bureau, 89 percent of all U.S firms have less than 20 employees and the average American company has approximately 10 employees.
Under the new policies proposed by new SBA Administrator Maria Contreras-Sweet, thousands of firms that are 15,000 percent larger than the average American firm will be able to compete for federal small businesses contracts. Thousands of large businesses that are 7,500 percent larger than 89 percent of all U.S. firms will become eligible to compete for federal small business contracts.
This will make it much easier for the federal government and prime contractors to claim they reached the government's 23 percent small business contracting goal.
Under the new much larger size standards, millions of legitimate small businesses will be forced out of business as they hopelessly struggle to compete with many of the largest firms in their industries for even the smallest government orders of goods and services. Millions of jobs will be lost across the country.
Critics of the new size standards believe the policies are actually a plan by the government to close the SBA and dismantle federal small business contracting programs to obscure billions of dollars in fraud that has been uncovered in a long series of federal investigations. In January, an article in Forbes agreed with American Small Business League President Lloyd Chapman that President Obama was actually trying to close the SBA.
As recently as Sept. 10, the House Small Business Committee lambasted SBA Administrator Maria Contreras-Sweet for reporting billions of dollars in contracts to firms such as Lockheed Martin, Northrup Grumman, Raytheon and Chevron as small business contracts.
The only national small business advocacy group that has mounted a campaign to oppose the SBA's anti-small business policies is the American Small Business League (ASBL).
The SBA will be taking public comment on their new proposed policies until Nov. 10. Individuals can post their opposition to the policies by going to the federal regulation's website and click "Comment Now!"
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SOURCE American Small Business League