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Please e-mail the American Small Business League (ASBL) at brianreeder@asbl.com. Thank you.

Friday, January 30, 2009

Obama Ignores Existing Federal Economic Stimulus Plans

FOR IMMEDIATE RELEASE
January 30, 2009

Petaluma, Calif. – President Barack Obama's current economic stimulus plan makes no mention of any provisions to address a myriad of problems that have been uncovered in existing federal programs designed to stimulate the economy and create jobs.

The Small Business Act of 1953 was one of the first economic stimulus plans adopted by the United States government. The purpose of the Small Business Act was to direct federal infrastructure funds to small businesses where over half of Americans work and where the overwhelming majority of new jobs are created. Since 1953, the Small Business Act has spawned a number of federal programs designed to stimulate the national economy and create jobs by assisting small businesses and firms owned by women, minorities and veterans.

During the Bush Administration, many of the programs were damaged by severe budget cuts and attempts by Bush officials to dismantle the Small Business Administration and its programs. (http://www.gao.gov/new.items/d08995.pdf)

Since 2003, over a dozen federal investigations have been released that found fraud, abuse, loopholes and a dramatic lack of proper oversight in virtually every federal program established to assist small businesses. (http://www.asbl.com/documentlibrary.html)

The single largest problem that has been uncovered is the diversion of up to $100 billion a year in federal small business contracts to Fortune 500 firms and hundreds of other large businesses. ABC, CBS and CNN all released investigative stories that found billions of dollars in federal small business contracts had actually gone to corporate giants such as Wal-Mart, Microsoft, Home Depot, John Deere, Xerox, General Dynamics and European conglomerates like British Aerospace, Rolls Royce and Burhmann NV headquartered in Holland. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)

In March of 2005, the Small Business Administration Office of Inspector General issued 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.sba.gov/IG/05-15.pdf)

Federal law currently stipulates that a minimum of 23 percent of the total value of all federal contracts and subcontracts shall be awarded to small businesses. The American Small Business League (ASBL) estimates that if President Obama's economic stimulus plan includes provisions to stop the diversion of federal small business contracts to corporate giants, over $100 billion a year in additional federal infrastructure funds could be redirected to middle class firms and create millions of jobs with minimal expense to taxpayers.

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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575

Thursday, January 29, 2009

Obama Dropped Small Business Stimulus Plan Days Before the Election

FOR IMMEDIATE RELEASE
January 29, 2009

Petaluma, Calif. – Just days before the election, President Barack Obama dropped a comprehensive plan to stimulate the middle class economy by stopping the diversion of federal small business contracts to corporate giants. The plan was drafted over the course of three months by dozens of small business experts around the country who had been invited to serve on President Obama's small business advisory panel.

The plan included a number of policies that would have redirected up to $100 billion a year in federal small business contracts back to legitimate middle class firms around the country.

Since 2003, a series of over 15 federal investigations found Bush Administration officials allowed billions of dollars in federal small business contracts to be diverted to Fortune 500 firms, their subsidiaries and thousands of large businesses in the United States and Europe.

A report issued by the Small Business Administration (SBA) Office of Inspector General (OIG) referred to the diversion of federal small business contracts to large businesses as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf)

President Obama responded to the investigations in February of 2008 with 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 plan included support for a new piece of draft legislation written by the American Small Business League (ASBL) titled the Fairness and Transparency in Contracting Act. The new legislation would prevent government contracting officials from awarding small business contracts to Fortune 500 firms and other large businesses. The ASBL estimates the new legislation would provide a dramatic boost to the nation's failing economy by redirecting up to $100 billion a year in federal infrastructure funds to middle class firms.

As opposed to other stimulus plans that could cost taxpayers hundreds of billions of dollars, the Fairness and Transparency in Contracting Act would be virtually free to taxpayers.

In December President Obama's transition team stated that up to 40,000 jobs could be created with every billion dollars spent on federal infrastructure projects. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html?_r=1) If calculations by President Obama and the ASBL are correct, the Fairness and Transparency in Contracting Act could create over 4 million new jobs at virtually no expense to taxpayers.

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Wednesday, January 28, 2009

Venture Capitalists Move to Hijack Government Small Business Contracts

FOR IMMEDIATE RELEASE
January 28, 2009

Petaluma, Calif. - The National Venture Capital Association (NVCA) and its members have launched a well-financed campaign of political contributions and lobbying in hopes of raiding federal small business contracting programs.

For over two years, the NVCA and some of its wealthiest members have been on a mission to have the longstanding federal definition of a small business as "independently owned" modified to include firms that are not independently owned, but controlled by some of the nation's wealthiest investors.

Historically, venture capitalists have attempted to disguise legislation and policies to take over federal small business contracting programs as policies to "increase access to capital for small businesses."

The NVCA has blanketed both the House and Senate small business committees with contributions. Millions of dollars in campaign contributions have been dealt out to key Democratic leaders like Speaker of the House Nancy Pelosi (D - CA) and Senator John Kerry (D - MA). According to MAPLight.org, President Barack Obama received more than one million dollars in campaign contributions from venture capitalists during his campaign. (http://www.maplight.org/map/us/interest/F2500)

Opponents of the NVCA campaign to hijack federal small business contracting programs believe President Obama's appointment of multi-millionaire venture capitalist Karen Mills to head the Small Business Administration (SBA) could indicate that the NVCA has been successful in buying influence with the White House and the democratically controlled Congress.

In the past, the NVCA's efforts to muscle in on federal small business contracting programs have been opposed by the Bush White House, the SBA, the United States Chamber of Commerce, the American Small Business League (ASBL) and hundreds of small business advocacy groups and chambers of commerce across the country.

With help from President Obama and House Speaker Nancy Pelosi, venture capitalists may try to slip language into the Obama stimulus plan that will modify the definition of a small business, which the Small Business Act currently defines as a firm that is "independently owned."

If the NVCA is successful, the ASBL projects that thousands of middle class jobs could be lost as small businesses across the country are forced out of business, due to a small number of firms controlled by wealthy investors dominating federal small business contracting programs.

"This is not about increasing small businesses access to capital. This is about increasing access to billions of dollars in federal small business contracts for some of our nation's wealthiest venture capitalists. It's unthinkable that President Obama would support policy changes that could devastate so many hard working small businesses as America faces its worst economic downturn since the great depression," ASBL President Lloyd Chapman said.

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No Plans From Obama to Dismantle Bush Anti-Small Business Policies

FOR IMMEDIATE RELEASE
January 28, 2009

Petaluma, Calif. – President Obama has not offered any plans to stop Bush Administration policies that will allow Fortune 500 firms and some of the largest companies in Europe to continue to receive hundreds of billions of dollars in federal small business contracts through the year 2012.

In June of 2007, former Administrator of the Small Business Administration (SBA) Steven Preston ignored recommendations from the SBA's own Office of Inspector General (OIG) and adopted a policy that will allow Fortune 500 firms and thousands of other large businesses to continue to receive federal small business contracts until 2012. (http://www.asbl.com/showmedia.php?id=592)

During the Bush Administration, 15 federal investigations and two private studies were released, which uncovered widespread fraud and abuse in virtually every federal small business contracting program. (http://www.asbl.com/documentlibrary.html)

In March of 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.sba.gov/IG/05-15.pdf)

In Report 5-16, the SBA OIG found large businesses had committed felony federal contracting fraud by making "false certifications" and "improper certifications." (http://www.sba.gov/IG/05-16.pdf)

In Report 5-14, the SBA OIG found the SBA itself had reported contracts to Dutch conglomerate Buhrmann NV, with 26,000 employees worldwide as small business awards. (http://www.sba.gov/IG/05-14.pdf)

A report from the SBA Office of Advocacy found large businesses had illegally received federal small business contracts through, "vendor deception." (http://www.asbl.com/documents/eagkeeye_report 2002.pdf)

In July of 2008, the Department of the Interior (DOI) OIG found that the agency had awarded millions of dollars in federal small business contracts to firms such as Dell Computer, Sherwin-Williams, John Deere, Xerox, Home Depot, GTSI Incorporated, McGraw-Hill Companies, Ricoh, Starwood Hotels, Weyerhaeuser, Waste Management and World Wide Technology. (http://www.doioig.gov/upload/2008-G-0024.pdf)

ABC, CBS and CNN all released investigative reports on the issue. (ABC, http://www.asbl.com/abc_evening_news.wmv ; CBS, http://www.asbl.com/cbs.wmv ;CNN, http://www.asbl.com/showmedia.php?id=1170)

The American Small Business League (ASBL) estimates that every year up to $100 billion in federal small business contracts are diverted to Fortune 500 firms and other large businesses.

In February of 2008, President Obama released the statement, "Its 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) Small business advocates and millions of legitimate small businesses are hoping President Obama will make good on his campaign promise, but no specific plans to address the billions in fraud and abuse in federal small business contracting programs have been proposed by President Obama so far.

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Tuesday, January 27, 2009

Obama Will Give Small Business Contracts to Fortune 500 Firms and Venture Capitalists

Petaluma, Calif. – President Barack Obama has dropped a campaign promise he made to small businesses in February of 2008 when he said, “98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. It’s 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)

During the campaign, Obama modified the quote on his website to remove the statement. (http://my.barackobama.com/page/content/sbhome/)

President Obama is expected to join House Speaker Nancy Pelosi and support a change in the federal definition of a small business as "independently owned" to include firms controlled by wealthy venture capitalists.

President Obama refused to include any proposed policies or legislation in his Change.gov website to address the problem. Just days before the election he also dropped a plan prepared by his small business advisory council to stop the flow of federal small business contracts to Fortune 500 firms and thousands of other large businesses. Without specific legislation or policy from President Obama, middle class companies will continue to lose jobs and up to $100 billion a year in federal small business contracts. (http://www.asbl.com/documents/BOsmallbusinesspolicy.pdf)

Obama's appointment of multi-millionaire venture capitalist and National Venture Capital Association (NVCA) member Karen Mills to head the Small Business Administration (SBA) is an indication that President Obama will likely support the diversion of federal small business contracts to wealthy venture capitalists.

During the course of the presidential campaign the NVCA and many of its largest members contributed millions of dollars to President Obama, House Speaker Nancy Pelosi, Senator John Kerry and dozens of key democratic members of Congress. The NVCA has been lobbying for changes in federal contracting law that will allow its members to take billions of dollars in federal contracts earmarked for small businesses. (http://www.maplight.org/map/us/interest/F2500)

The NVCA has hired some of Washington's most powerful lobbyists to help them gain access to federal programs designed to help middle class firms. They have tried to disguise the policy and legislative changes they are seeking by calling it, “increasing access to capital for small businesses.”

In the recent past, attempts by the NVCA to have the federal definition of a small business as “independently owned” modified was opposed by the SBA, the United States Chamber of Commerce, the American Small Business League and dozens of other small business groups around the country. (http://www.asbl.com/showmedia.php?id=624)


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