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

Thursday, May 28, 2009

Georgia Congressman Hank Johnson Takes a Stand for American Small Businesses

America's 27 million small businesses have a new hero and his name is Hank Johnson.

Last Friday, Georgia Congressman Hank Johnson (GA-04) introduced a new bill in the House of Representatives that will do more to help America's 27 million small businesses and stimulate the national economy than any stimulus plan proposed to date.

The bill, H.R. 2568, is titled "the Fairness and Transparency in Contracting Act of 2009." The new bill is based on a very simple principle that every American would certainly agree with: the largest corporations in the world should not be receiving government small business contracts. Congressman Johnson has worked with the American Small Business League (ASBL) staff for several months to get the bill into the final form he introduced into the House of Representatives.

The heart of the Fairness and Transparency in Contracting Act is a provision that precludes the federal government and prime contractors from reporting awards to publicly traded firms as small business awards. The original Small Business Act defines a small business as a firm that is 'independently owned." Publicly traded firms are publicly owned, and would not qualify as "independently owned."

This would seem like a no-brainer, but it has taken several years and someone with the integrity and sincere concern for our nation's 27 million small businesses like Representative Hank Johnson to finally address this staggering problem.

Since 2003, a constant flow of federal investigations have come from a variety of agencies in Washington that have all found Fortune 500 firms in the U.S. and even some of Europe's largest corporations receive billions of dollars in U.S. government small business contracts.

In 2005, the Small Business Administration Office of Inspector (SBA IG) released the results of its investigation into the diversion of federal small business contracts to corporate giants around the world. In Report 5-15, the SBA IG referred to the issue as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." That sounds pretty serious to me. Why hasn't Congress acted on this before? (http://www.sba.gov/IG/05-15.pdf)

Several senior level government officials have told me privately that as much as 86 percent of all federal small business contracts actually go to large businesses. Based on the latest numbers from the SBA Office of Advocacy indicating the total volume of contracts awarded to small businesses, 86 percent would equate to more than $100 billion a year.

I have won several Freedom of Information Act (FOIA) cases against the federal government, which forced the release of thousands of pages of information on the actual recipients of federal small business contracts. Based on all of the information I have seen, I would agree at least $100 billion a year in government small business contracts go to Fortune 500 firms and thousands of other large businesses around the world.

The latest data from the U.S. Census Bureau indicates that 98 percent of all U.S. firms have less than 100 employees. These firms create over 97 percent of all new jobs in America and employ over 50.2 percent of the private sector workforce.

The Obama Administration has stated that for every billion dollars in federal infrastructure spending 40,000 new jobs will be created. Based on the Obama Administration and the U.S. Census Bureau data, if the Fairness and Contracting Act becomes law up to 4 million new jobs could be created at no additional expense to the taxpayers.

There is another aspect to H.R 2568 that will no doubt delight almost every state in the country. Almost half of all federal small business contracts go to firms within 50 miles of the White House. These are the very corporate giants that have been passing off their subsidiaries and divisions as small businesses, and hijacking most of the small business contracts.

If President Obama signs the Fairness and Transparency in Contracting Act into law, every state will see its share of federal small business contracts double.

President Obama should love H.R. 2568. He has promised to create between 3 and 4 million new jobs. In February of 2008 he stated, "It is time to end the diversion of federal small business contracts to corporate giants." This bill will achieve both of those goals. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

Congressman Hank Johnson has introduced the most effective and cost efficient economic stimulus plan proposed to date. Hats off to Congressman Johnson for taking a stand for the American people, and letting the "corporate giants" and Washington bureaucrats know, there's a new sheriff in town and his name is Hank Johnson.

Wednesday, May 27, 2009

Georgia Congressman Hank Johnson Comes to the Rescue of America's 27 Million Small Businesses

FOR IMMEDIATE RELEASE
May 27, 2009

Petaluma, Calif. - On Thursday, May 21, Georgia Congressman Hank Johnson (GA-04) introduced a bill into the House of Representatives that could redirect billions of dollars in federal small business contracts back into the hands of legitimate small businesses. If passed into law, the bill will create millions of new jobs and provide one of the most significant economic stimulus plans ever proposed.

Bill H.R. 2568 is titled, "the Fairness and Transparency in Contracting Act of 2009." The new bill is the only legislation ever introduced in Congress to halt the diversion of over $100 billion a year in federal small business contracts to Fortune 500 firms and thousands of other large businesses.

Congressman Johnson worked with the staff at the American Small Business League (ASBL) for several months to get the bill into its final form before he introduced it into the House of Representatives on May 21. (http://www.house.gov/apps/list/press/ga04_johnson/05_26_09_small_biz.shtml)

Current federal law based on the original Small Business Act requires a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses. Since 2003, over a dozen federal investigations have been released, which found Fortune 500 firms and even some of the largest corporations in Europe were the actual recipients of most federal small business contracts.

In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) described the problem 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 Barack Obama acknowledged the magnitude of the problem when he 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 Fairness and Transparency in Contracting Act prevents the federal government from continuing to report contracts to publicly traded firms as small business awards. The original Small Business Act stipulates that a small business must be "independently owned." Firms that are publicly traded are publicly owned, and do not qualify as "independently owned."

The latest U.S. Census Bureau statistics indicate 98 percent of U.S. firms have less than 100 employees and create over 97 percent of net new jobs in America. During the 2008 election cycle, President Obama stated that every billion dollars spent on federal infrastructure projects could create up to 40,000 jobs. Based on this estimation, H.R. 2568 could create up to 4 million new jobs.

"It's unconscionable that some large corporations are the beneficiaries of small business contracts," Congressman Johnson said. "Especially given how many small businesses are struggling in this recession. H.R. 2568 will go a long way in helping correct this egregious error."

Tuesday, May 26, 2009

New House Bill 2568 Will Jumpstart National Economy

New House Bill Could Create Millions of New Jobs

Petaluma, Calif. – On Friday, May 22nd, Congressman Hank Johnson (D – GA) introduced the first bill to end the longstanding diversion of federal small business contracts to many of the nation’s largest corporations.

H.R. 2568, the Fairness and Transparency in Contracting Act, will stop the federal government and prime contractors from reporting awards to Fortune 500 corporations and other publicly traded firms as small business contracts. H.R. 2568 is based on the provision of the Small Business Act that defines a small business as a firm that is “independently owned.” Firms that are publicly traded do not qualify as “independently owned.”

Since 2003, a series of federal investigations found Fortune 1000 firms to have received billions of dollars a year in federal small business contracts. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General described the diversion of government small business contracts to large business as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today...”

In February of 2008, President Barack Obama acknowledged the magnitude of the problem when he released the statement, “It is time to end the diversion of federal small business contracts to corporate giants.

H.R. 2568 will also require the government to report all small business awards in the name of the parent company. Currently, small business contracts can be reported in the name of subsidiaries of Fortune 500 firms. This practice makes it easier for large businesses to misrepresent subsidiaries as small businesses.

The Fairness and Transparency in Contracting Act will also improve access to data on the recipients of small business contracts. H.R. 2568 will require the SBA to release the names of all recipients of government small business contracts within 90 days of the end of the fiscal year.

American Small Business League (ASBL) President Lloyd Chapman originally wrote the Fairness and Transparency in Contracting Act. Chapman estimates H.R. 2568 could redirect over $100 billion a year in federal small business contracts back to middle class firms.

“Every small business in America owes Congressman Hank Johnson a debt of gratitude for introducing this bill. Small businesses create over 97 percent of all net new jobs, and this bill will do more to help those firms than any stimulus plan proposed so far. It will create millions of new jobs and provide a dramatic boost to the middle class economy,” Chapman said.

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