SBA IG Cites Contracting Abuses as #1 Problem for the 5th Consecutive Year
FOR IMMEDIATE RELEASE
November 30, 2009
Petaluma, Calif. - For the fifth consecutive year the Small Business Administration Office of Inspector General (SBA OIG) has described the diversion of federal small business contracts to Fortune 500 firms and other clearly large businesses as the #1 problem facing the SBA.
Since 2003, over 24 federal investigations have found that every year billions of dollars in federal small business contracts are diverted away from legitimate small businesses and into the hands of Fortune 500 firms. According to the latest information released by the Obama Administration the top recipient of federal small business contracts was Textron, a Fortune 500 corporation with 43,000 employees, and $14 billion in annual revenue. Other firms that are receiving federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees.
In 2005, the SBA OIG released Report 5-15, which referred to the diversion of federal small business contracts to large corporations as "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Even President Obama acknowledged the magnitude of the issue when in February of 2008 he promised to end the abuses by stating, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
To date, the Obama Administration has failed to honor that promise. The American Small Business League (ASBL) estimates that every year over $100 billion in federal small business contracts are diverted to corporate giants.
On May 21, 2009, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act, to address this issue. The bill was originally drafted by the ASBL, and currently has 17 co-sponsors as well as the support of more than 50 business organizations and chambers of commerce across the country.
To date, the Obama Administration and both the House and Senate small business committees have refused to address this issue or endorse H.R. 2568.
"The fact that the SBA Inspector General has found this issue to be the agency's #1 problem for the fifth consecutive year, yet the SBA has done nothing to address it, goes way beyond incompetence," ASBL President Lloyd Chapman said. "This is by design, and this issue is not going to stop until journalists start asking President Obama why his administration talks about helping small businesses, and then gives hundreds of millions of dollars in small business contracts to corporate giants every day."
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Please click here to watch a short clip about the ASBL's concerns: http://www.youtube.com/watch?v=cX34LddPtHE
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Contact
Monday, November 30, 2009
Tuesday, November 24, 2009
More Fraud in SBA Managed Small Business Programs
FOR IMMEDIATE RELEASE
November 24, 2009
Petaluma, Calif. – In a recent U.S. Government Accountability Office (GAO) investigation into fraud in the Service Disabled Veteran Owned Small Business (SDVOSB) program, investigators stated, "By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud or abusing the intent of the veterans program." http://www.gao.gov/new.items/d10108.pdf
The report, which was presented to Congress on Thursday, November 19, is just the latest example of ongoing abuses in the government's small business contracting programs, finding at least $100 million in federal contracts fraudulently awarded to ineligible firms.
Since 2002, there have been more than 24 other federal investigations, which have found fraud, abuse, loopholes and a lack of oversight in small business contracting programs under various federal agencies. http://www.asbl.com/documentlibrary.html
In 2005, Report 5-15 from the Small Business Administration Office of Inspector General (SBA OIG) stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." Since 2006, The SBA OIG has classified this issue as the #1 management challenge facing the agency. http://www.asbl.com/documents/05-15.pdf, http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf
In 2008, the Department of Interior Office of Inspector General (DOI OIG) released a report titled, "Interior Misstated Achievement of Small Business Goals by Including Fortune 500 companies." In its report, the DOI OIG found the agency awarded small business contracts to Fortune 500 firms like, Home Depot, John Deere, Dell, Sherwin Williams, Starwood Hotels and Waste Management.
http://www.doioig.gov/upload/2008-G-0024.pdf
The American Small Business League (ASBL) has estimated that due to these abuses, every year more than $100 billion in federal small business contracts are diverted away from legitimate small businesses and into the hands of Fortune 500 corporations and other clearly large firms around the world.
In February of 2008, President Obama promised to stop these abuses by stating, "It is time to end the diversion of federal small business contracts to corporate giants." To date, the Obama Administration has not honored that promise. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
"It is ludicrous to think President Obama is trying to help small businesses when he has given them a tenth of a percent of the stimulus funds, and his administration has continued to give billions of dollars a month in federal small business contracts to some of the biggest companies in the world," ASBL President Lloyd Chapman said.
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Please click here to watch a short clip about the ASBL's concerns: http://www.youtube.com/watch?v=cX34LddPtHE
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 24, 2009
Petaluma, Calif. – In a recent U.S. Government Accountability Office (GAO) investigation into fraud in the Service Disabled Veteran Owned Small Business (SDVOSB) program, investigators stated, "By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud or abusing the intent of the veterans program." http://www.gao.gov/new.items/d10108.pdf
The report, which was presented to Congress on Thursday, November 19, is just the latest example of ongoing abuses in the government's small business contracting programs, finding at least $100 million in federal contracts fraudulently awarded to ineligible firms.
Since 2002, there have been more than 24 other federal investigations, which have found fraud, abuse, loopholes and a lack of oversight in small business contracting programs under various federal agencies. http://www.asbl.com/documentlibrary.html
In 2005, Report 5-15 from the Small Business Administration Office of Inspector General (SBA OIG) stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." Since 2006, The SBA OIG has classified this issue as the #1 management challenge facing the agency. http://www.asbl.com/documents/05-15.pdf, http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reports_tmc_fy10.pdf
In 2008, the Department of Interior Office of Inspector General (DOI OIG) released a report titled, "Interior Misstated Achievement of Small Business Goals by Including Fortune 500 companies." In its report, the DOI OIG found the agency awarded small business contracts to Fortune 500 firms like, Home Depot, John Deere, Dell, Sherwin Williams, Starwood Hotels and Waste Management.
http://www.doioig.gov/upload/2008-G-0024.pdf
The American Small Business League (ASBL) has estimated that due to these abuses, every year more than $100 billion in federal small business contracts are diverted away from legitimate small businesses and into the hands of Fortune 500 corporations and other clearly large firms around the world.
In February of 2008, President Obama promised to stop these abuses by stating, "It is time to end the diversion of federal small business contracts to corporate giants." To date, the Obama Administration has not honored that promise. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
"It is ludicrous to think President Obama is trying to help small businesses when he has given them a tenth of a percent of the stimulus funds, and his administration has continued to give billions of dollars a month in federal small business contracts to some of the biggest companies in the world," ASBL President Lloyd Chapman said.
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Please click here to watch a short clip about the ASBL's concerns: http://www.youtube.com/watch?v=cX34LddPtHE
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, November 19, 2009
Few Attend Obama National Small Business Conference
Only Seven Small Businesses Invited to Attend Obama National Small Business Conference
FOR IMMEDIATE RELEASE
November 19, 2009
Petaluma, Calif. - After announcing that the Obama Administration would, "convene a conference…that will bring together regulators, congressional leaders, lenders and small businesses," to discuss the flow of credit and capital to small businesses, on Wednesday, November 18, the Obama Administration held a five hour small business "forum" with a mere seven hand-picked small business owners on the docket.
The American Small Business League (ASBL) points to yet another example of the staggering disparity between President Obama's rhetoric and his administration's actions for our nation's 27 million small business owners.
Small businesses are the backbone of our nation's economy. According to the U.S. Census Bureau, small businesses are responsible for over 50 percent of our nation's Gross Domestic Product (GDP), 50.2 percent of the non-farm private sector work force and 97 percent of net-new jobs. With that in mind, the ASBL maintains small businesses deserved a more substantial seat at the table.
During the 2008 election cycle, President Obama promised to:
- End the diversion of federal small business contracts to corporate giants. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
- Restore the Small Business Administration's (SBA) budget and staffing. http://obama.3cdn.net/d14eb1b3649c4d6745_0evzmv02w.pdf
- Restore the SBA Administrator to a cabinet level position. http://sbc.senate.gov/press/record.cfm?id=307468
- Implement the congressionally mandated 5-percent set-aside goal for women owned firms. http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf
More than a year after the 2008 presidential election, the Obama Administration has failed to honor its promises to the small business community.
The ASBL maintains that honoring President Obama's promise to "end the diversion of federal small business contracts to corporate giants" alone, would save thousands of small businesses and countless American jobs by redirecting over $100 billion a year in federal contracts to small businesses in the middle class economy.
The diversion of federal small business contracts to corporate giants was not discussed during Wednesday's forum.
"As we predicted, President Obama's forum ignored what the SBA Inspector General has referred to as the SBA's #1 challenge for five consecutive years," ASBL President Lloyd Chapman said. "We need to quit listening to what he says, and look at what he does. Despite the commotion and rhetoric the Obama Administration has stirred up regarding its small businesses forum, it looks like it was just another publicity stunt. I'd love to see someone from the mainstream media ask President Obama on national television why he is continuing to give billions of dollars a month in federal small business contracts to Fortune 500 firms."
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Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
FOR IMMEDIATE RELEASE
November 19, 2009
Petaluma, Calif. - After announcing that the Obama Administration would, "convene a conference…that will bring together regulators, congressional leaders, lenders and small businesses," to discuss the flow of credit and capital to small businesses, on Wednesday, November 18, the Obama Administration held a five hour small business "forum" with a mere seven hand-picked small business owners on the docket.
The American Small Business League (ASBL) points to yet another example of the staggering disparity between President Obama's rhetoric and his administration's actions for our nation's 27 million small business owners.
Small businesses are the backbone of our nation's economy. According to the U.S. Census Bureau, small businesses are responsible for over 50 percent of our nation's Gross Domestic Product (GDP), 50.2 percent of the non-farm private sector work force and 97 percent of net-new jobs. With that in mind, the ASBL maintains small businesses deserved a more substantial seat at the table.
During the 2008 election cycle, President Obama promised to:
- End the diversion of federal small business contracts to corporate giants. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
- Restore the Small Business Administration's (SBA) budget and staffing. http://obama.3cdn.net/d14eb1b3649c4d6745_0evzmv02w.pdf
- Restore the SBA Administrator to a cabinet level position. http://sbc.senate.gov/press/record.cfm?id=307468
- Implement the congressionally mandated 5-percent set-aside goal for women owned firms. http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf
More than a year after the 2008 presidential election, the Obama Administration has failed to honor its promises to the small business community.
The ASBL maintains that honoring President Obama's promise to "end the diversion of federal small business contracts to corporate giants" alone, would save thousands of small businesses and countless American jobs by redirecting over $100 billion a year in federal contracts to small businesses in the middle class economy.
The diversion of federal small business contracts to corporate giants was not discussed during Wednesday's forum.
"As we predicted, President Obama's forum ignored what the SBA Inspector General has referred to as the SBA's #1 challenge for five consecutive years," ASBL President Lloyd Chapman said. "We need to quit listening to what he says, and look at what he does. Despite the commotion and rhetoric the Obama Administration has stirred up regarding its small businesses forum, it looks like it was just another publicity stunt. I'd love to see someone from the mainstream media ask President Obama on national television why he is continuing to give billions of dollars a month in federal small business contracts to Fortune 500 firms."
-###-
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
Wednesday, November 18, 2009
Obama Small Business Forum Will Ignore Number One SBA Challenge
PETALUMA, Calif. - The Obama Administration will hold a Small Business Forum today with Treasury Secretary Timothy Geithner and Small Business Administration (SBA) Administrator Karen Mills. While many subjects will be covered, the American Small Business League (ASBL) predicts the one subject not discussed will be the diversion of federal small business contracts to corporate giants.
Every year since 2006, including the current fiscal year, the SBA Office of Inspector General (OIG) has listed the number-one management challenge facing the SBA as, "Procurement flaws allow large firms to obtain small business awards and agencies to count contracts performed by large firms towards their small business goals." (http://bit.ly/4nmRkt)
In 2005, the SBA OIG released Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
President Obama recognized the gravity of the situation in February of 2008 when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://bit.ly/4fRrGq)
Since 2003, more than 15 federal investigations have found that billions of dollars in federal small business contracts have been diverted to Fortune 500 firms in the U.S. and some of the largest firms in Europe and Asia. (http://www.asbl.com/documentlibrary.html)
In the most recent data released by the Obama Administration, Textron, a Fortune 500 firm with more than 43,000 employees, was the top recipient of federal small business contracts getting over $775 million. Other firms such as Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees, were included in the Obama Administration's small business contracting data. (http://bit.ly/W0EB1)
The ASBL estimates that since President Obama took office, over $100 billion in federal small business contracts have been diverted to corporate giants around the world. The ASBL helped draft H.R. 2568, the Fairness and Transparency in Contracting Act, which if passed, will immediately stop the flow of small business contracts to corporate giants.
"If President Obama were really sincere about helping small businesses, then he would immediately stop the flow of federal small business contracts to Fortune 500 firms," ASBL President Lloyd Chapman said.
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
Every year since 2006, including the current fiscal year, the SBA Office of Inspector General (OIG) has listed the number-one management challenge facing the SBA as, "Procurement flaws allow large firms to obtain small business awards and agencies to count contracts performed by large firms towards their small business goals." (http://bit.ly/4nmRkt)
In 2005, the SBA OIG released Report 5-15, which stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
President Obama recognized the gravity of the situation in February of 2008 when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://bit.ly/4fRrGq)
Since 2003, more than 15 federal investigations have found that billions of dollars in federal small business contracts have been diverted to Fortune 500 firms in the U.S. and some of the largest firms in Europe and Asia. (http://www.asbl.com/documentlibrary.html)
In the most recent data released by the Obama Administration, Textron, a Fortune 500 firm with more than 43,000 employees, was the top recipient of federal small business contracts getting over $775 million. Other firms such as Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees, were included in the Obama Administration's small business contracting data. (http://bit.ly/W0EB1)
The ASBL estimates that since President Obama took office, over $100 billion in federal small business contracts have been diverted to corporate giants around the world. The ASBL helped draft H.R. 2568, the Fairness and Transparency in Contracting Act, which if passed, will immediately stop the flow of small business contracts to corporate giants.
"If President Obama were really sincere about helping small businesses, then he would immediately stop the flow of federal small business contracts to Fortune 500 firms," ASBL President Lloyd Chapman said.
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
Tuesday, November 17, 2009
Obama Small Business Conference Should Take ‘Reasonable’ Steps to Reduce Unemployment
FOR IMMEDIATE RELEASE
November 17, 2009
Petaluma, Calif. – Since President Barack Obama has said that we need to take all reasonable steps to stimulate the economy and create new jobs, the American Small Business League (ASBL) would like to propose these very reasonable steps to stimulate the economy and cut unemployment: http://whitehouse.blogs.foxnews.com/2009/11/12/white-house-to-host-jobs-forum-in-december/
- Do not change the definition of a small business from being "independently owned" to include firms that are owned and controlled by venture capitalists. This would divert even more small business contracts away from legitimate small businesses and into the hands of wealthy investors.
- Do not attempt to close the Small Business Administration (SBA) by combining it with the U.S. Department of Commerce or any other federal agency.
- Honor your campaign promise to, "end the diversion of federal small business contracts to corporate giants." The best way to do this would be to back H.R. 2568, the Fairness and Transparency in Contracting Act. The Obama Administration is currently awarding billions of dollars a month in federal small business contracts to corporate giants around the world. (e.g. Textron, Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Rolls Royce, and Thales) By stopping this problem, H.R. 2568, would redirect more current federal infrastructure spending to small businesses in the middle class than any other proposal to date. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
- Implement the 5 percent set-aside goal for women owned firms like you promised during the campaign. http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf
- Restore the SBA's budget and staffing like you promised during the campaign.
The current SBA staffing levels are at their lowest levels in 30 years. http://obama.3cdn.net/d14eb1b3649c4d6745_0evzmv02w.pdf
- Eliminate the SBA fabricated exclusionary rules that reduce contacting opportunities for small businesses.
- Abolish the Comprehensive Test Program, which allows contractors to avoid penalties for non-compliance and avoid submitting reports that are used to track compliance with their small business sub-contracting goals.
- Enforce the "Liquidated Damages" clause in the Federal Acquisition Regulation (FAR), which created a penalty for prime contractor non-compliance with its small business sub-contracting plans. This law has never been enforced.
- Aggressively prosecute fraud and misrepresentation in federal small business programs.
Misrepresenting the size of a firm in order to illegally receive federal contracts and subcontracts is a felony with penalties of up to 10 years in prison, a fine up to $500,000, cancellation of all contracts and debarment from selling to the government.
-###-
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 17, 2009
Petaluma, Calif. – Since President Barack Obama has said that we need to take all reasonable steps to stimulate the economy and create new jobs, the American Small Business League (ASBL) would like to propose these very reasonable steps to stimulate the economy and cut unemployment: http://whitehouse.blogs.foxnews.com/2009/11/12/white-house-to-host-jobs-forum-in-december/
- Do not change the definition of a small business from being "independently owned" to include firms that are owned and controlled by venture capitalists. This would divert even more small business contracts away from legitimate small businesses and into the hands of wealthy investors.
- Do not attempt to close the Small Business Administration (SBA) by combining it with the U.S. Department of Commerce or any other federal agency.
- Honor your campaign promise to, "end the diversion of federal small business contracts to corporate giants." The best way to do this would be to back H.R. 2568, the Fairness and Transparency in Contracting Act. The Obama Administration is currently awarding billions of dollars a month in federal small business contracts to corporate giants around the world. (e.g. Textron, Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Rolls Royce, and Thales) By stopping this problem, H.R. 2568, would redirect more current federal infrastructure spending to small businesses in the middle class than any other proposal to date. http://www.barackobama.com/2008/02/26/the_american_small_business_le.php
- Implement the 5 percent set-aside goal for women owned firms like you promised during the campaign. http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf
- Restore the SBA's budget and staffing like you promised during the campaign.
The current SBA staffing levels are at their lowest levels in 30 years. http://obama.3cdn.net/d14eb1b3649c4d6745_0evzmv02w.pdf
- Eliminate the SBA fabricated exclusionary rules that reduce contacting opportunities for small businesses.
- Abolish the Comprehensive Test Program, which allows contractors to avoid penalties for non-compliance and avoid submitting reports that are used to track compliance with their small business sub-contracting goals.
- Enforce the "Liquidated Damages" clause in the Federal Acquisition Regulation (FAR), which created a penalty for prime contractor non-compliance with its small business sub-contracting plans. This law has never been enforced.
- Aggressively prosecute fraud and misrepresentation in federal small business programs.
Misrepresenting the size of a firm in order to illegally receive federal contracts and subcontracts is a felony with penalties of up to 10 years in prison, a fine up to $500,000, cancellation of all contracts and debarment from selling to the government.
-###-
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration's small business conference: http://www.youtube.com/watch?v=7JvT7Btd_9s
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, November 12, 2009
Details of Next Week's Obama Small Business Conference Remain a Mystery
FOR IMMEDIATE RELEASE
November 12, 2009
Petaluma, Calif. – On October 21, President Barack Obama announced he would convene a small business conference to address increasing access to capital for small businesses. Yet less than a week before the conference is set to convene on Wednesday, November 18, the Administration has refused to release any information regarding the event's location, time, agenda or attendees.
The American Small Business League (ASBL) is concerned that the administration is withholding details on the conference as a means of preventing legitimate small business concerns, small business advocates and the media from attending.
"This is a clear indication that President Obama has no intention of adopting any policies that will actually benefit legitimate small businesses. My guess is that this is going to be a love-fest for his venture capitalist buddies and the Fortune 500 firms he is giving small business contracts to every day," ASBL President Lloyd Chapman said.
The ASBL is predicting that the meeting could actually propose creating a loophole that would divert federal small business contracts away from legitimate small businesses and into the hands of wealthy venture capitalists under the guise of "increasing access to capital" for small businesses. The ASBL is concerned that in a worst-case scenario President Obama may even try to wind down federal small business contracting programs under the guise of bolstering the SBA by combining it with the U.S. Department of Commerce.
The ASBL questions the motives of President Obama and the legitimacy of the conference as a whole.
"Obviously they don't want media coverage of their sham small business conference and they clearly don't want any input from legitimate small business advocates," Chapman said. The administration's strategy may be to prevent input from small business groups that have complained about the Obama Administration awarding millions of dollars a day in federal small business contracts to Fortune 500 corporations, including stimulus dollars, according to the ASBL.
The ASBL points to the fact that the Administration has allocated less than 1 percent of stimulus funds to small businesses.
In a recent post, blogger Arianna Huffington criticized President's Obama's plan to hold a small business conference and took aim at his priorities by stating, "If this [small business lending] were really a high-priority for the administration, it could, you know, actually do something about it."
http://www.huffingtonpost.com/arianna-huffington/barack-obama-is-doing-my_b_334631.html
"If President Obama really wanted to help small businesses he would have honored his February 2008 campaign promise to, 'end the diversion of federal small business contracts to corporate giants,' but he hasn't done that has he?” Chapman said.
-###-
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration’s small business conference: http://www.youtube.com/watch?v=IXAg0XRROIs
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 12, 2009
Petaluma, Calif. – On October 21, President Barack Obama announced he would convene a small business conference to address increasing access to capital for small businesses. Yet less than a week before the conference is set to convene on Wednesday, November 18, the Administration has refused to release any information regarding the event's location, time, agenda or attendees.
The American Small Business League (ASBL) is concerned that the administration is withholding details on the conference as a means of preventing legitimate small business concerns, small business advocates and the media from attending.
"This is a clear indication that President Obama has no intention of adopting any policies that will actually benefit legitimate small businesses. My guess is that this is going to be a love-fest for his venture capitalist buddies and the Fortune 500 firms he is giving small business contracts to every day," ASBL President Lloyd Chapman said.
The ASBL is predicting that the meeting could actually propose creating a loophole that would divert federal small business contracts away from legitimate small businesses and into the hands of wealthy venture capitalists under the guise of "increasing access to capital" for small businesses. The ASBL is concerned that in a worst-case scenario President Obama may even try to wind down federal small business contracting programs under the guise of bolstering the SBA by combining it with the U.S. Department of Commerce.
The ASBL questions the motives of President Obama and the legitimacy of the conference as a whole.
"Obviously they don't want media coverage of their sham small business conference and they clearly don't want any input from legitimate small business advocates," Chapman said. The administration's strategy may be to prevent input from small business groups that have complained about the Obama Administration awarding millions of dollars a day in federal small business contracts to Fortune 500 corporations, including stimulus dollars, according to the ASBL.
The ASBL points to the fact that the Administration has allocated less than 1 percent of stimulus funds to small businesses.
In a recent post, blogger Arianna Huffington criticized President's Obama's plan to hold a small business conference and took aim at his priorities by stating, "If this [small business lending] were really a high-priority for the administration, it could, you know, actually do something about it."
http://www.huffingtonpost.com/arianna-huffington/barack-obama-is-doing-my_b_334631.html
"If President Obama really wanted to help small businesses he would have honored his February 2008 campaign promise to, 'end the diversion of federal small business contracts to corporate giants,' but he hasn't done that has he?” Chapman said.
-###-
Please click here to watch a short clip about the ASBL's concerns regarding the Obama Administration’s small business conference: http://www.youtube.com/watch?v=IXAg0XRROIs
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, November 9, 2009
Obama Stimulus Plan Fails Middle Class
FOR IMMEDIATE RELEASE
November 9, 2009
Petaluma, Calif. - On Friday, the U.S. Department of Labor announced that the national unemployment rate rose to 10.2 percent in the month of October, its highest point in 26 years.
Small business advocates like the American Small Business League (ASBL) believe the unemployment rate continues to soar because the Obama Administration's economic stimulus plan has virtually ignored middle class firms.
Firms with 20 or fewer employees are responsible for over 97 percent of all net new jobs, according to the most recent U.S. Census Bureau data. http://www.inc.com/news/articles/200708/data.html To date the Obama Administration has awarded less than one percent of all funds allocated under the stimulus to those firms.
In February of 2008, President Obama released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." http://www.barackobama.com/2008/02/26/the_american_small_business_le.php The statement is based on a series of federal investigations, which have found that every year billions of dollars in federal small business contracts are diverted to some of the largest companies around the world. http://www.asbl.com/documentlibrary.html
The ASBL estimates that since President Obama took office over $100 billion in federal contracts were diverted to corporate giants around the world.
Despite pledging to address these issues, the Obama Administration has consistently refused to adopt any legislation or policy to solve the problem. Consequently, Fortune 500 firms like Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Rolls Royce, and French giant Thales Communications continue to receive federal small business contracts. The most recent data released by the Obama Administration lists Fortune 500 corporation, Textron Inc. as the largest recipient of federal small business contracts. Textron has 43,000 employees.
"If President Obama really wants to stimulate our nation's economy and create new jobs, he needs to help pass H.R. 2568, the Fairness and Transparency in Contracting Act," ASBL President Lloyd Chapman said. "H.R. 2568 offers the most efficient and cost effective method anyone has proposed to redirect federal infrastructure spending to small businesses. It would also solve the 10-year-old contracting scandal the Small Business Administration (SBA) Inspector General referred to as, 'one of the most important challenges facing the small business administration and the entire federal government today.' "
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 9, 2009
Petaluma, Calif. - On Friday, the U.S. Department of Labor announced that the national unemployment rate rose to 10.2 percent in the month of October, its highest point in 26 years.
Small business advocates like the American Small Business League (ASBL) believe the unemployment rate continues to soar because the Obama Administration's economic stimulus plan has virtually ignored middle class firms.
Firms with 20 or fewer employees are responsible for over 97 percent of all net new jobs, according to the most recent U.S. Census Bureau data. http://www.inc.com/news/articles/200708/data.html To date the Obama Administration has awarded less than one percent of all funds allocated under the stimulus to those firms.
In February of 2008, President Obama released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." http://www.barackobama.com/2008/02/26/the_american_small_business_le.php The statement is based on a series of federal investigations, which have found that every year billions of dollars in federal small business contracts are diverted to some of the largest companies around the world. http://www.asbl.com/documentlibrary.html
The ASBL estimates that since President Obama took office over $100 billion in federal contracts were diverted to corporate giants around the world.
Despite pledging to address these issues, the Obama Administration has consistently refused to adopt any legislation or policy to solve the problem. Consequently, Fortune 500 firms like Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Rolls Royce, and French giant Thales Communications continue to receive federal small business contracts. The most recent data released by the Obama Administration lists Fortune 500 corporation, Textron Inc. as the largest recipient of federal small business contracts. Textron has 43,000 employees.
"If President Obama really wants to stimulate our nation's economy and create new jobs, he needs to help pass H.R. 2568, the Fairness and Transparency in Contracting Act," ASBL President Lloyd Chapman said. "H.R. 2568 offers the most efficient and cost effective method anyone has proposed to redirect federal infrastructure spending to small businesses. It would also solve the 10-year-old contracting scandal the Small Business Administration (SBA) Inspector General referred to as, 'one of the most important challenges facing the small business administration and the entire federal government today.' "
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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