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Sizing Things Up

Under fire for giving too many contracts to big business, the SBA fights back.

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This story appears in the October 2005 issue of Entrepreneur. Subscribe »

Depending on whom you talk to, Texas-born small-businessadvocate Lloyd Chapman is either a modern-day Cesar Chavez or aconspiracy theorist with a grudge. Either way, as the haslearned, he's become hard to ignore.

In late 2004, Chapman and his organization, the American Small BusinessLeague, spearheaded an investigation into a series of flaws inthe SBA's contract procurement process, culminating in alawsuit. Since the end of 2004, at least five reports from threedifferent agencies--the Government AccountabilityOffice, the SBA Office of Advocacy and the SBA Office of theInspector General--have noted irregularities in the SBA'ssystem of awarding small- contracts, prompted in part byChapman's incessant lobbying. The agencies' findings allegecomplacency at best, borderline at worst.

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