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

Thursday, December 3, 2009

Congress Considers Jobs Bill

FOR IMMEDIATE RELEASE
December 3, 2009

Petaluma, Calif. - In May of 2009, Congressman Hank Johnson (D-4-GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009, which would create millions of new jobs by stopping the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations and other corporate giants. The bill currently has the bipartisan support of 18 other cosponsors, and chambers of commerce and business organizations around the country.

The American Small Business League (ASBL) points to H.R. 2568 as the simplest and most effective economic stimulus proposed to date.

Since 2003, twenty-five federal investigations have found billions of dollars in fraud and abuse in federal small business contracting programs, which have diverted billions of dollars away from legitimate small businesses and into the hands of Fortune 500 corporations. According to the latest information released by the Obama Administration the top recipient of federal small business contracts was Textron, a Fortune 500 corporation with 43,000 employees, and $14 billion in annual revenue. Other firms that are receiving federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees. http://www.asbl.com/documentlibrary.html, http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf

The ASBL has estimated that if passed, H.R. 2568 would redirect more than $100 billion a year in government contracts to small businesses in the middle class economy. Following the 2008 presidential election, President Obama's transition team estimated that every billion dollars spent on federal infrastructure projects would create 40,000 jobs. http://www.nytimes.com/2008/12/07/us/politics/07radio.html?fta=y

Based upon the Obama Administration's own findings, H.R. 2568 would create four million new jobs, while cutting unemployment and saving thousands of small businesses from bankruptcy.

"This is the most efficient, cost effective economic stimulus anyone has proposed to date and I challenge anyone to disprove that," ASBL President Lloyd Chapman said. "I would love to hear what President Obama's economists think about a bill that would perpetually redirect between $100 and $130 billion a year in existing federal infrastructure spending to the middle class economy. The Administration claims that it has allocated $17.3 billion in stimulus to small businesses, I would not be surprised if it was less than half that. America's rapidly rising national unemployment numbers demand a BIG solution, and H.R. 2568 is that BIG solution."

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

Wednesday, December 2, 2009

Obama Jobs Forum Angers Small Business Group

FOR IMMEDIATE RELEASE
December 2, 2009

Petaluma, Calif. - On Thursday, December 3, President Barack Obama will commence a "Forum on Jobs and Economic Growth," at the White House. The American Small Business League (ASBL) is concerned that President Obama's jobs forum is yet another publicity stunt designed to yield positive public relations, as opposed to creating new jobs.

The summit will include, "130 liberal economists, union leaders, Fortune 500 executives, and even a few small-business owners," according to Kent Hoover, Washington bureau chief for bizjournals. (http://www.portfolio.com/views/blogs/capital/2009/12/01/bernanke-confirmation-hearing-is-real-jobs-summit/) President Obama's Forum on Jobs comes just weeks after the administration held a small business-lending forum with a mere seven handpicked small business owners invited to speak. http://www.asbl.com/showmedia.php?id=1521

The ASBL maintains that if President Obama really wanted to stimulate the national economy and create new jobs he would support the small business community and honor the promises he made during the 2008 presidential election.

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

To date, President Obama has failed to honor that promise.

The ASBL maintains that stopping the diversion of federal small business contracts to corporate giants alone would redirect more than $100 billion a year in federal infrastructure spending to America's chief job creators, its small businesses. Firms with 20 or fewer employees are responsible for over 97 percent of all net new jobs, according to the most recent U.S. Census Bureau data. http://www.inc.com/news/articles/200708/data.html

On October 26, Arianna Huffington took aim at President Obama's priorities by stating, "If this [small business lending] were really a high-priority for the administration, it could, you know, actually do something about it."
http://www.huffingtonpost.com/arianna-huffington/barack-obama-is-doing-my_b_334631.html

The ASBL maintains that President Obama's rhetoric is inconsistent with his actions.

"If President Obama were really serious about creating jobs he would back H.R. 2568, the Fairness and Transparency in Contracting Act, which will redirect over $100 billion a year in federal infrastructure spending to the small businesses where most Americans work and where nearly all new jobs are created. H.R. 2568 is the simplest and most effective economic stimulus anyone has proposed to date." ASBL President Lloyd Chapman said. "As George S. Patton said, 'A good plan violently executed now is better than a perfect plan executed next week.' Small businesses cannot afford the luxury of waiting for President Obama to become the man we all thought he was."

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

Monday, November 30, 2009

Small Business Contracting Abuses #1 Problem at SBA for 5th Consecutive Year

SBA IG Cites Contracting Abuses as #1 Problem for the 5th Consecutive Year

FOR IMMEDIATE RELEASE
November 30, 2009

Petaluma, Calif. - For the fifth consecutive year the Small Business Administration Office of Inspector General (SBA OIG) has described the diversion of federal small business contracts to Fortune 500 firms and other clearly large businesses as the #1 problem facing the SBA.

Since 2003, over 24 federal investigations have found that every year billions of dollars in federal small business contracts are diverted away from legitimate small businesses and into the hands of Fortune 500 firms. According to the latest information released by the Obama Administration the top recipient of federal small business contracts was Textron, a Fortune 500 corporation with 43,000 employees, and $14 billion in annual revenue. Other firms that are receiving federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, British Aerospace (BAE), Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy with 73,000 employees.

In 2005, the SBA OIG released Report 5-15, which referred to the diversion of federal small business contracts to large corporations as "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)

Even President Obama acknowledged the magnitude of the issue when in February of 2008 he promised to end the abuses by stating, "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)

To date, the Obama Administration has failed to honor that promise. The American Small Business League (ASBL) estimates that every year over $100 billion in federal small business contracts are diverted to corporate giants.

On May 21, 2009, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act, to address this issue. The bill was originally drafted by the ASBL, and currently has 17 co-sponsors as well as the support of more than 50 business organizations and chambers of commerce across the country.

To date, the Obama Administration and both the House and Senate small business committees have refused to address this issue or endorse H.R. 2568.

"The fact that the SBA Inspector General has found this issue to be the agency's #1 problem for the fifth consecutive year, yet the SBA has done nothing to address it, goes way beyond incompetence," ASBL President Lloyd Chapman said. "This is by design, and this issue is not going to stop until journalists start asking President Obama why his administration talks about helping small businesses, and then gives hundreds of millions of dollars in small business contracts to corporate giants every day."

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Please click here to watch a short clip about the ASBL's concerns: http://www.youtube.com/watch?v=cX34LddPtHE


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