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

Wednesday, July 29, 2009

Small Businesses Short Changed on Stimulus Funds

July 29, 2009

It is time for America’s small businesses to unite and take ACTION!

Los Angeles, CA – In a recent national address, President Barack Obama boldly proclaimed that his administration’s economic stimulus package was working. Meanwhile, small businesses in middle class America struggle to simply keep their doors open. Despite thousands of business closures during the last several months, the mainstream media has spent little time discussing the importance of small businesses to America’s economic vitality. Our nation’s political leaders routinely recognize small business as the backbone of our nation’s economy, but to date small businesses have largely been left out of efforts to stimulate America’s economy.

America’s 27 million small businesses generate more than $6 trillion in annual revenue and collectively account for more than half of our nation’s Gross Domestic Product (GDP). U.S. Census Bureau data indicates that companies with less than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of net new jobs.

When small businesses thrive, our economy grows. Yet today, millions of these businesses are being threatened by the very plan that was supposedly intended to help them. The president’s stimulus package, rather than providing aid to small businesses is diverting resources to save mismanaged corporate giants.

Congress earmarked a mere 1.9 percent of the initial $789 billion stimulus package to assist small businesses. Worse yet, to date, less than ½ of 1 percent has been distributed to small businesses. The irony of this is that in the long run small businesses will bear the burden of paying nearly the entire tab for this extravagant spending package and receive almost NOTHING in return.

The new administration is taking capital and revenue from the mouths of America’s small business owners and feeding it to the big national banks, greedy Fortune 500 CEOs and Wall Street executives. This theory enraptures Wall Street, yet alienates Main Street. Even the Small Business Administration (SBA) is led by venture capital vipers who are licking their chops at a chance to infiltrate and dominate federal programs designed for small businesses.

The SBA was planning to guarantee $20 billion in loans during fiscal year (FY) 2009, yet it is currently on-track to reach half of that mark. Loan programs like the ARC [America’s Recovery Capital] have been purposely structured so that few small businesses can qualify and banks literally have little motivation to lend. Even more disconcerting, every year, billions of dollars in federal contracts intended for small businesses are diverted to Fortune 500 corporations and other clearly large firms. Since 2003, more than 15 federal investigations found fraud, abuse, loopholes and a lack of oversight have led to widespread abuses in federal small business programs. The American Small Business League (ASBL) has estimated that every year up to $100 billion in federal small business contracts are diverted to corporate giants.

On top of this, small businesses are facing a hike in taxes for those earning more than $250,000, limits on itemized deductions, higher dividend taxes and shouldering more responsibility for worker health care.

While the Fortune 500 corporations have an army of lobbyists in Washington, small businesses are on their own. For this reason, it is more important than ever that small businesses unite. Regardless of political affiliation or industry association something needs to be done to stop this insane, wasteful spending spree. The ASBL and the Small Business Hour Radio Show are urging small business owners to make their voice heard. They collectively will be working together to shine a brighter light on issues facing America’s 27 million small businesses, and to help the small business community organize a more powerful unified voice. To participate in this united movement towards change, please listen to the Small Business Hour with Mark Deo at and become a supporter of the ASBL by visiting


Lloyd Chapman, President of the American Small Business LeagueA vocal crusader for the rights of small business, Mr. Chapman is a familiar figure at the Small Business Administration and in the United States Congress, where he has continued to work tirelessly during the last two presidential administrations to prevent federal small business contracts from being diverted to large corporations. He is regularly quoted by the media on small business contracting issues. He can be contacted at

Mark Deo, Host of the Small Business Hour. Mark Deo is a small business advocate, author, journalist and business owner. For 12 years he has been the host of CBS radio’s, "The Small Business Hour." He has been voted "Journalist of the Year" by the Small Business Administration; his weekly radio show can be heard at

Christopher Gunn
Communications Director
American Small Business League
(707) 789-9575

Tuesday, July 28, 2009

Who Are the Real Small Business Advocates in America?

Can Legitimate Small Business Groups be Funded by Fortune 500 Firms?

By Lloyd Chapman
President, American Small Business League

Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years? Can an organization funded by Fortune 500 firms truly represent small businesses?

In 2002, I convinced the Government Accountability Office (GAO) to launch the first federal investigation into the diversion of federal small business contracts to large corporations. In February of 2003, David Cooper, Director of GAO's Acquisition and Sourcing Management Office, told Washington Technology magazine that the GAO launched its investigation based on "information Chapman provided." (

That first GAO investigation has prompted over a dozen other federal investigations and private studies into the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses. (

In 2005, the Small Business Administration Office of Inspector General (SBA OIG) released Report 5-15, which assessed the magnitude of the widespread fraud and abuses in federal small business contracting programs. Report 5-15 described the diversion of hundreds of billions of dollars in federal small business contracts to many of the largest companies in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (

Since the results of that first GAO investigation were released in May of 2003, over 500 stories in the media have covered the issue. Every major newspaper in the country has reported on the problem. Dozens of magazine articles have covered it. It has been on every major television network, including: ABC, CBS, CNN, FOX and CNBC. Finally, the diversion of federal small business contracts to corporate giants has been discussed in more than 400 radio interviews by the American Small Business League (ASBL) staff.

Over a dozen federal investigations, more than 500 stories in the media over eight years, and over $100 billion a year diverted from small businesses and firms owned by women and minorities; surely any group that claims to represent small businesses, women or minorities must have done something to address a problem of this magnitude.

I challenge anyone to even find this issue mentioned anywhere on the websites of any so-called small business organization. Try and find any evidence of any effort to halt the fraud and abuse against legitimate small businesses. Virtually every national organization that claims to represent small businesses is actually funded by the very Fortune 500 firms that have hijacked hundreds of billions of dollars in federal small business contracts. Now that is a staggering conflict of interest. Many of these Fortune 500 firms have even lobbied to close the SBA and end all federal programs to assist small businesses and firms owned by women, minorities and veterans.

Some of these sham groups will attempt to tell us that their members don't care about this issue. Quite the contrary, try and find a single legitimate small business in America that thinks Fortune 500 firms should receive federal small business contracts.

Here's the truth; the ASBL is the only national organization that has fought to bring an end to the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 firms and hundreds of other large businesses. The ASBL is the only national small business group that does not take money from Fortune 500 firms or big businesses. We only fight for small businesses.

We provided the information that prompted the investigations. We filed the lawsuits that forced the release of thousands of pages of government data proving that Fortune 500 firms have received billions of dollars in federal small business contracts. We prompted the overwhelming majority of stories in the media on this issue. We have fought the SBA, the White House, the Pentagon and Congress as they have refused to adopt legislation and policy to halt the rampant abuses. And now we are the only small business organization in America that has successfully had legislation introduced into Congress to finally halt the diversion of federal small business contracts to corporate giants. The passage of H.R. 2568, the Fairness and transparency in Contracting Act will bring an end to years of fraud, abuse and loopholes in federal small business contracting programs.

The passage of H.R. 2568 will also redirect over $100 billion a year in current federal infrastructure spending back to the 27 million small businesses where most Americans work. These firms are responsible for 50 percent of the Gross Domestic Product and over 95 percent of all net new jobs in America.

Don't be fooled anymore, if you want to discover who the real small business advocates are in America, look to see who funds these groups and ask who has fought to end the most widely publicized and investigated abuses against small businesses in the last decade.

If you are a small business owner, after you have discovered who the real small business advocates are, join them in their fight for American small businesses.