News Column

Battle Between a Small-Business Advocate and the SBA Gets Personal

April 17, 2009

Rob Kuznia--HispanicBusiness.com

lloyd chapman, ASBL chairman, small business, SBA lawsuits, American Small Business League


With regular appearances on Fox News and CNN, Lloyd Chapman is a small-business advocate whose star is on the rise.

And although he may not be a household name, if he has his way, everyone will know the name Chapman before too long.

The 59-year-old Texas native who founded the American Small Business League is on a one-man crusade against the federal government's U.S. Small Business Administration.

But more importantly, perhaps, Chapman is on a mission to clear his good name.

"I think it was Shakespeare who said, 'He who steals my purse steals nothing. He who steals my good name steals everything,'" Chapman said. The one doing the "stealing," according to Chapman, is Mike Stamler, head spokesman for the SBA.

"This has become personal between me and Mike Stamler, and I'm going to win, and he's going to lose."

While Chapman has a history of suing the SBA over federal procurement, his latest suit against the agency is indeed quite personal.

First, a bit of background. Ever since founding the league in 2004, Chapman has sued the SBA five times, and insists he's won every case -- except for the one that's ongoing. Most of the suits have sought to obtain public records from the SBA -- as well as a reimbursement of attorneys fees -- in a quest to show that the SBA has routinely awarded small-business contracts to huge corporations, some of them Fortune 500 companies.

But in mid-March, Chapman -- whose public profile is growing as a small-business analyst on Fox News -- filed a different kind of suit. This one alleges that Stamler has slandered and defamed him, mainly in emails and phone conversations with journalists.

On March 12, Chapman filed suit with the U.S. District Court of the Northern District of California for records of every single phone call made by Stamler from 2005 through 2007. In the coming weeks, he plans to do the same thing for Stamler's emails. The league actually began asking the SBA for the documents 15 months ago, but is now taking the matter to court because Chapman is dissatisfied with the SBA's response.

Chapman, whose organization is located in the San Francisco Bay Area, argues that Stamler has dismissed as "myth" anything the league puts forth, most notably the contention that corporate giants such as Halliburton, Boeing, Rolls Royce and Lockheed-Martin are receiving lucrative federal contracts meant for small businesses.

The charge that large companies are getting contracts they should not be eligible for has to some degree been echoed by the SBA's inspector general, and even acknowledged by President Barack Obama.

But what really seems to be irking Chapman is another, more personal, allegation. Stamler, Chapman says, has openly questioned his sanity in emails to journalists.

"Mike Stamler says I'm a lunatic," Chapman told HispanicBusiness.com. "Everything I say is a lie and that this is a myth."

Chapman said he has obtained copies of some of the emails Stamler has sent to journalists knocking him. He declined to share them, citing the ongoing litigation, but says "lunatic" is a word that Stamler has used to describe him.

Providing a glimpse of the gory details is an item in the blogosphere from 2007. It involves a post from a reporter of the Long Island Business News.

Continued | 1 | 2 | 3 | 4 | Next >>

Comments

Total Comments: 12 | Pending Comments: 0

dough
4/21/2009 11:36:41 AM PST
It looks as though SBA is too busy holding expensive events for their staff in Washington DC to actually help us recovery. The papers blast them for missing deadlines to implement loan programs but it appears they are planning a big party with the corporate executives for small business week. What a joke!


smallbizadvocate
4/20/2009 6:53:41 PM PST
In this fight with the ASBL and Mr. Stamler, whether worth it or not, should cause the SBA to take a real look at the existing laws and regulations that already provide for watchdog measures over abuse in small business subcontracting. The large businesses awarded huge contracts are only making a transparent attempt in reaching out to the small business community. The SBA has the tools, maybe not the resources; which if they really intended for small business to be successful would enforce the verification processes and hold large businesses accountable to upholding their commitments in there Subcontracting Plans rather than relying on so-called "good faith efforts" to maintain the integrity of the small business subcontracting process.


bob
4/20/2009 2:18:12 PM PST
I am surprised that the National Small Business Association is not more supportive of Lloyd Chapman's efforts. It is equally surprising that NSBA views the diversion of up to $100 billion a year in federal small business contracts away form middle class firms to be so unimportant. They must not have read report 5-15 from the SBA Office of Inspector General which refers to this problem as, "One of the largest challenges facing the SBA and the entire federal government today". Mr. Chapman is consistently in the news championing small business and suing the government to expose fraud and abuse in government small business programs. Has the NSBA ever won a federal law suit on behalf of small businesses? I think the NSBA members should join the American Small Business League. I did.


Alice
4/20/2009 9:30:22 AM PST
First, I want to say thank you to Mr. Chapman, his efforts have helped countless small businesses like mine, who work with the government. While working with the government can provide great opportunities, it is also a dangerous minefield where small businesses get eaten by the big companies that dominate the contracting arena. I have always been disappointed with the SBA and their performance in helping small businesses, this perhaps explains some reasons why. I find it curious that the SBA is actually actively fighting small businesses instead of helping them. What is going on here? I had hoped the irony of this situation would end with the Bush regime. The mission of the SBA is to help small businesses, so why, after so many investigations, do they deny the reality of what is going on?


iluvsb
4/20/2009 9:20:21 AM PST
Dear Mr. Stamler, I think your behavior is nothing short of childish. You are doing a very poor job representing the Small Business Administration. Didn't your 2nd grade teacher ever tell you not to name call? I think it is time for you to stop focusing on slandering your opponents (which seem to be very angry with you for some reason) and focus on the real issue at hand and that is that small businesses are getting the shaft because your agency is allowing billions in set-aside contracts to go to large corporations. It is time to grow-up, face the music and do your job. Sincerely, Very Concerned Small Business Owner.


Ashki
4/20/2009 8:04:11 AM PST
I am glad to see that someone is stepping up to the issues that us small businesses are dealing with. Stop and think about all the businesses that had to close their doors because they are competing with corporate giants. How can a small materials company compete with Home Depot or a computer company compete with Dell? The SBA should have no secrets and should give the information, what are they protecting? It is the freakin SBA.. not NASA and not the DOD. The SBA is not working with missiles or strategic defense of our country. So there should be no secrets and as an employee of the people, Stamler should not say or write anything that he would not want to be repeated. Mike if you did wrong you might as well tell the truth, why dig yourself into a deeper hole?


HispSmBusiness
4/19/2009 10:35:12 PM PST
I've been following Lloyd Chapman & the Americal Small Business League for a number of years & this guy gets it DONE! I've supported a number of small business organizations in the past and I've given up on them and started giving my support to the ASBL because Chapman MAKES THINGS HAPPEN!! If you're a Hispanic business owner or work for a Hispanic company this is the group to get behind for REAL change. They sincerely and effectively lobby for us & make a difference. I'm sure that's why Stamler is bad mouthing him - Chapman goes out there and calls the SBA & the Feds out on their stuff & Stamler has no defense because Chapman is RIGHT. Stamler backed himself into a corner & started name calling because what else is he going to say?! Chapman is the only guy fighting for us...and he WINS!


truthtimeisnow
4/19/2009 10:22:25 PM PST
It is amazing to hear that a single American citizen could have so much passion and impact on our political process. it's also shocking knowing that the SBA is so uncooperative. Maybe, Stamler should think more about doing the best thing for the American people, as opposed to defaming our nation's watchdogs.


Small Biz Owner
4/19/2009 8:45:14 PM PST
Thank you American Small Business League! Selling to the Federal Government is challenging enough without competing with large corporations for small business contracts. This is a real problem. It's too hard for small businesses to take on these issues individually. Thank you Lloyd Chapman for being our advocate. Shame on the SBA for deliberately ignoring this problem.


juliiana
4/19/2009 8:32:30 PM PST
I have seen Lloyd Chapman on TV several times advocating for small businesses. Hispanic owned small businesses and all small businesses probably owe Mr. Chapman a debt of gratitude. It sounds like Mike Stamler needs to be fired ASAP.


bizadvocate
4/19/2009 8:26:24 PM PST
It is amazing what Lloyd Chapman has done for small business. Thank goodness for his passion. I am sure if it were not for his tenacity, George Bush would have just done away with the SBA and any focus on small business. Lloyd, THANK YOU!!! Kay Baker The Strategic Alliance LLC Lakewood, Colorado


radar423
4/19/2009 7:57:23 PM PST
I want to applaud Hispanic Business for giving this story the attention that it deserves. Even though Mr. Chapman is not Hispanic(neither am I, but my wife is and she owns her own small business) his cause is vital for the reinvention of the American Economy. Small business is the only way to create jobs in this country and if the leaders of the SBA are trying to take the oxygen away from the visionary fires that made this country great, we will all suffer. Presidential candidate Obama seemed to have understood this until major corporations and big business contributed enough to his campaign so that he became the president, and beholden to his large contributors. I would like to remind President Obama that the first American flag was commissioned by a small women owned shop.


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