Small Business Contracting Scandal Celebrates its 6-Year Anniversary

Petaluma, Calif. - The American Small Business League (ASBL) has sent six separate cakes to: the Administrator of the Small Business Administration Karen Mills, the chair and ranking member of both the House and Senate small business committees, and the former Chair of the House Committee on Small Business, Rep. Donald Manzullo (R - IL).

Each cake has been decorated with, "Happy 6th anniversary small business contracting fraud." A note with each cake says:

"It's now been 6 years since the first congressional hearing on the diversion of federal small business contracts to large corporations and there has been no legislation. Why? Support the American Small Business League's Fairness and Transparency in Contracting Act."

The ASBL is hoping to bring attention to the fact that although the first hearing on the diversion of federal small business contracts to Fortune 500 firms was held six years ago, no legislation has been passed to address the abuses.

Since 2003, a series of over a dozen federal investigations have all found that every year billions of dollars in federal small business contracts actually wind up in the hands of Fortune 500 firms.

The ASBL estimates over $100 billion a year in federal small business contracts are diverted to large businesses.

During the 2008 Presidential election, President Barack Obama stated, "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)

President Obama has consistently refused to adopt any legislation or policy to honor his campaign promise.

The ASBL has drafted, "The Fairness and Transparency in Contracting Act," which it believes could create millions of jobs in America by stopping the flow of federal small business contracts to large businesses and redirecting those funds to middle class firms. According to the U.S. Census Bureau, firms with less than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of all new jobs in America.

"It's been 6 years since this issue was uncovered. As America sinks deeper and deeper into an economic recession, it's time for President Obama to do what he said he was going to do during the campaign, and end the diversion of federal contracts earmarked for middle class firms to corporate giants," ASBL President Lloyd Chapman said.

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Lloyd Chapman on CNN Radio: Obama Ignores Simple Solution to Stimulate Economy

The President of the American Small Business League (ASBL) Lloyd Chapman was a featured guest on CNN Radio's, Wall Street Shuffle on Friday May 1, regarding the Obama Administration and its failure to address the diversion of federal small business contracts to corporate giants.

Please click the following link to listen:

http://thewallstreetshuffle.com/podcasts/050109-Seg3.mp3