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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

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

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.

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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

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