SBA Appeals Federal Court Ruling to Release Contracting Data

SBA Moves to Limit Public Access to Contracting Data

PETALUMA, Calif., Sept. 25 /PRNewswire-USNewswire/ -- The U.S. Small Business
Administration (SBA) has decided to appeal a United States District Court
ruling against them, directing the agency to release the specific names of all
recipients of federal small business contracts during fiscal years (FY) 2005
and 2006. The case was filed by the American Small Business League (ASBL)
under the Freedom of Information Act (FOIA) after the SBA refused to comply
with the ASBL's request. The ASBL requested the data to prove that during the
Bush Administration most small business contracts were actually awarded to
Fortune 500 firms.

The SBA's decision to appeal the case is the latest in a series of moves by
the Bush Administration to limit the public's access to information regarding
federal small business contracting programs.

Even though the SBA is responsible for virtually every aspect of federal small
business contracting programs and policy, the SBA has attempted to convince
the court that they do not possess any information regarding the specific
names of firms that received federal small business contracts. In an August
25, 2008 court hearing, SBA lawyers told United States District Court Judge
Marilyn H. Patel that the information requested by the ASBL was "not an agency
record."

Judge Patel disagreed and ruled against the SBA. In the court's summary
judgment, Patel held that not only was the information requested by the ASBL
an agency record, but the SBA was even responsible for compiling the data. As
a result of the courts decision, the SBA will be required to pay the legal
fees incurred by the ASBL during the course of litigation.

The ASBL's case against the SBA will now go to the 9th Circuit Court of
Appeals. Court documents indicating the SBA's justification for appealing the
case have not been released.

"The Small Business Administration's willingness to take this matter to the
9th Circuit Court should be an indication to the media, public and Congress
that transparency is not a priority for the SBA at this time. We can see no
legal theory which would support an appeal of the district court's decision."
Attorney for ASBL, Robert Belshaw said.

In addition to its decision to appeal the Federal District Court ruling, the
SBA is also refusing to comply with a second ASBL Freedom of Information
request for the names of firms that received federal small business contracts
during 2001 through 2004.

To date, the SBA has also refused to release the government's small business
contracting statistics for FY 2007, which ended almost a year ago.

"It's obvious the Bush Administration has something to hide. Why else would
they be willing to go to the 9th Circuit Court of Appeals over simple
information that should be readily available to every citizen? Since 2002,
there have been 15 federal investigations that have found the Bush
Administration has diverted billions of dollars in federal small business
contracts to large corporations. That is the real reason the SBA is
withholding this data, particularly this close to an election," ASBL President
Lloyd Chapman said. "I am confident we will win this case. I won my first
FOIA case against the Defense Department in the 9th Circuit Court back in
1994. I've won every FOIA case I have ever filed against the Bush
Administration, and I'll win this one too."

SOURCE American Small Business League

Christopher Gunn of American Small Business League, +1-707-789-9575,
cgunn@asbl.com