Local man fights for small business contracts

Lloyd Chapman knows all too well the heartache of losing a lucrative government contract, especially for a small business.

As sales manager for a Petaluma-based computer company in the late 1980s, Chapman listened as a sobbing sales team member explained how she had spent three months working on getting a contract that was earmarked for a U.S. small business only to lose out to a Dutch company with 26,000 employees.

"I thought, 'What?'" Chapman said. "How can that be true?"

Since then, Chapman, 63, has dedicated his life to fighting what he calls corruption and fraud in the way small businesses are awarded federal contracts. After a career in the computer industry, the Texas transplant founded the American Small Business League in Petaluma in 2004.

"We are the only organization in the country, no, in the world, that's working on fixing small business contracting," Chapman said. "We think it's a problem that the government is giving small business contracts to Fortune 500 companies."

The Small Business Act of 1953 mandates that 23 percent of government contracts must go to small businesses. Chapman has sued the White House, the Pentagon and the Small Business Administration multiple times to try and achieve more transparency in how government contracts are awarded.

He recently worked with Rep. Hank Johnson (D-GA) to draft a bill that would "close the loopholes that allow publicly traded, foreign-owned and Fortune 1000 companies to receive federal contracts intended for small businesses."

Chapman's lawsuits have spurred investigations into fraud and abuse in small business contracting, which found that large companies such as Verizon, General Electric and Bank of America received contracts earmarked for small businesses.

"Before I got involved, there were zero investigations," Chapman said. "Now there are dozens of investigations."

The American Small Business League headquarters, in a quiet, nondescript office park in southern Petaluma, is far from the halls of power and influence in Washington, D.C. Yet thanks to its tenacious, charismatic founder, the tiny local organization punches above its weight as it advocates for small businesses.

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