PETALUMA, Calif., Nov. 17, 2016 /PRNewswire/ -- The American Small Business League ( ASBL) has appealed their federal injunction case against the Small Business Administration to the 9 th Circuit Court of Appeals in San Francisco.
The aim of their injunction is to halt two SBA policies they believe are illegal, and have resulted in the defrauding of legitimate small businesses out of hundreds of billions in federal small business contracts. The ASBL asked the court for an injunction against the SBA's " grandfathering policy." The SBA uses their "grandfathering policy" to dramatically misrepresent the government's compliance with the 23% small business contracting goal by including billions in federal contracts to Fortune 500 firms. In 2015 the SBA included contracts to over 150 Fortune 500 firms and large businesses in the $91 billion they claim were awarded to small businesses. A Government Accountability Office investigation in 2003 found federal contracts to over 5,300 large businesses were being reported as small business contracts. No language in the Small Business Act would allow Fortune 500 firms or their subsidiaries be considered as small businesses.