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

Thursday, September 2, 2010

An Open Letter to House Speaker Nancy Pelosi from American Small Business League President Lloyd Chapman

FOR IMMEDIATE RELEASE
September 2, 2010

Petaluma, Calif. – Despite at least $3 trillion in government spending aimed at stimulating the economy, a multitude of economic indicators now show that the economy is poised to slip into a double dip recession. I believe, as I am sure you do, that we need to bring down unemployment in order to stimulate the economy. To date, none of the actions taken by Congress or the Obama administration have met that need.
(http://money.cnn.com/news/storysupplement/economy/bailouttracker/)

As you may know, small businesses create the overwhelming majority of net new jobs in America. According to the U.S. Census Bureau, businesses with less than 20 employees create over 97 percent of net new jobs. (http://www.inc.com/news/articles/200708/data.html) Statistics from the Small Business Administration (SBA) Office of Advocacy indicate that small businesses create over 90 percent of all net new jobs. (http://www.sba.gov/advo/research/rs359.pdf) Any effort to create jobs must be focused on small businesses.

One of the most effective economic stimulus programs ever passed by the U.S. Congress was the Small Business Act of 1953. The Small Business Act requires that 23 percent of the total value of all government contracts must go to small businesses. This makes perfect sense, considering the important role small businesses play when it comes to the U.S. economy and job creation.

Since 2003, over a dozen federal investigations have found that most small business contracts actually go to Fortune 500 firms, European conglomerates and thousands of other large businesses around the world. Some of those companies are: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, General Electric, Honeywell International Corporation, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA, which is located in Italy and has 73,000 employees. (http://www.asbl.com/documentlibrary.html#5-15)

In March of 2005, the SBA Inspector General referred to this problem 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) The SBA Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years. (http://www.sba.gov/ig/onlinelibrary/tmc/index.html) Even President Obama recognized the magnitude of the problem in February of 2008 when he said, “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)

Ending the diversion of small business contracts to large businesses would redirect over $100 billion a year in federal contracts back into the middle class economy. This would be the most powerful economic stimulus to date and can be used to drive demand directly into the hands of our nation’s small businesses. With this economic stimulus in mind, I urge you to support H.R. 2568, the Fairness and Transparency in Contracting Act. It was introduced by Georgia Congressman Hank Johnson, and currently has 26 cosponsors. This bill is a deficit neutral means of ending the 10-year-old contracting scandal that has facilitated the diversion of over $1 trillion in small business contracts to corporate giants.

The single most effective and deficit neutral way to create jobs is to direct existing federal infrastructure spending to the middle class. So if you want to stimulate the economy and create jobs, H.R. 2568 would be the most effective way to do that. It could be passed and signed into law as soon as Congress comes back in session. I believe that H.R. 2568, which would bring over $100 billion a year, and every year, to small businesses, would be more effective than a one-time shot of $30 billion in loans.

As our nation slides into its worst economic disaster in history; it would be inexcusable to allow the continued diversion of billions of dollars a month in small business contracts to corporate giants. I think that the Democratic Party and President Obama would be wise to take dramatic action to stave off a double dip recession before the November election, and I think that H.R. 2568 would accomplish that.

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

Wednesday, September 1, 2010

An Open Letter to First Lady Michelle Obama from American Small Business League President Lloyd Chapman

FOR IMMEDIATE RELEASE
September 1, 2010

Petaluma, Calif. – I am writing to you today because I am hoping you will help save millions of American small businesses from bankruptcy. I realize that you, as a mother and as someone who came from a hardworking middle class family, could not only sympathize, but also help with the situation we are currently in. I am very concerned, as I am sure you are, about the state of our nation’s economy. And while I know that President Obama is trying to stay positive, all of the economic indicators are alarming, and there is certainly evidence that we could slip into another recession.

Our country is in the worst economic crisis in 80 years, and the situation appears to be degrading. Yet, as I watch what the government has done over the last few years, it does not make much sense to me. I think everyone agrees that small businesses create the overwhelming majority of net new jobs in America. According to the U.S. Census Bureau, businesses with less than 20 employees create over 97 percent of net new jobs. (http://www.inc.com/news/articles/200708/data.html) The Small Business Administration (SBA) Office of Advocacy statistics indicate that small businesses create over 90 percent of all net new jobs. (http://www.sba.gov/advo/research/rs359.pdf) Yet, even though Small businesses create almost all of the net new jobs in America, the government gives the majority of small business contracts to large corporations. That simply does not make sense.

What I am trying to do, and would like your help with, is very logical. I don’t think the government should award small business contracts to Fortune 500 firms and some of the biggest corporations from around the world. I believe that 99 percent of all Americans would agree with me, particularly in this current economic climate, that the government should not be diverting billions of dollars in contracts to large corporations that by law are supposed to be going to small businesses.

Since 2003, there have been over a dozen federal investigations, which have found Fortune 500 firms and thousands of large companies around the world as the actual recipients of federal small business contracts. (http://www.asbl.com/documents/05-15.pdf) The SBA’s Inspector General has listed this problem as the number one management challenge facing the agency for the past five consecutive years. (http://www.sba.gov/ig/onlinelibrary/tmc/index.html)

One of the most powerful stimulus bills ever written was the Small Business Act, which currently states that small businesses are to receive a minimum of 23 percent of the total value of all federal contracts, but that is not happening. On Friday, the SBA released its fiscal year (FY) 2009 small business contracting data and claimed to have awarded over $96 billion, or 21.89 percent, in federal contracts to small businesses. In reality, of the top 100 recipients of small business contracts, 60 were large businesses that received 65 percent of the total contract dollars. Some of the firms included as small businesses were: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer, General Electric and Honeywell International Corporation. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

If the Obama Administration were to simply do as federal law mandates and ensure that 23 percent of all federal contracts actually went to small businesses, it would create millions of jobs and could potentially be our strongest defense against a double dip recession.

I have helped draft a bill titled, H.R. 2568, the Fairness and Transparency in Contracting Act. It was introduced by Georgia Congressman Hank Johnson (D-04) and currently has 26 cosponsors. This legislation is deficit neutral, and will do more to help create jobs than anything proposed to date.

I wanted to bring this to your attention in the hope that you will help us with this important cause. As our economy continues to falter, and American families are faced with heartache and despair; action needs to be taken quickly before thousands more lose their jobs and their homes. A real and simple solution exists in the form of H.R. 2568, which could begin to rescue our economy from the precipice.

I am simply asking for you help, to use your influence to do anything you think would be appropriate to convince President Obama to fulfill the campaign promise he made in February 2008 in which he 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)

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

Monday, August 30, 2010

Obama Tries to Downplay Questionable Small Business Data

FOR IMMEDIATE RELEASE
August 30, 2010

Petaluma, Calif. – The Obama Administration has released its fiscal year (FY) 2009 Small Business Procurement Scorecard, reporting that the government missed its 23 percent small business contracting goal. In its scorecard, the government claimed to have awarded a mere 21.89 percent to small businesses, while also failing to meet congressionally mandated contracting goals for women, Service Disabled Veteran Owned Small Businesses and HUBZone firms. The Obama Administration missed 4 of its 5 contracting goals. (http://www.businesswire.com/news/home/20100827005701/en)

The American Small Business League (ASBL) maintains that based on a recent evaluation of FY 2009 small business contracting data, the actual percentage of contracts awarded to small businesses is closer to 5 percent. In June, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. (http://www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

The ASBL also identified a series of Fortune 500 corporations and other large firms in the government’s 2009 contracting data. Recipients of small business contracts included: Lockheed Martin, Boeing, Raytheon, L-3 Communications, British Aerospace (BAE), Northrop Grumman, General Electric, Booz Allen Hamilton, Thales Communications, General Dynamics, and Dell Computer.

Since 2003, more than a dozen federal investigations have found billions of dollars a month in federal small business contracts flowing into the hands of corporate giants. (http://www.asbl.com/documentlibrary.html)

The ASBL believes the Obama Administration has dramatically inflated the percentage of contracts awarded to small businesses by under-reporting the actual federal acquisition budget and by including billions of dollars in contracts awarded to large businesses. The actual federal acquisition budget for foreign, domestic, classified and unclassified projects is roughly $1 trillion. The Obama Administration’s goaling achievement is based on a number that is less than half of the actual federal acquisition budget.

As the American Small Business League predicted, the Obama Administration released its FY 2009 small business contracting numbers near the close of business on Friday afternoon. The late release of data is a clear indication the Obama Administration was trying to avoid scrutiny form the mainstream media. (http://www.huffingtonpost.com/lloyd-chapman/obama-administration-fabr_b_693359.html, http://www.huffingtonpost.com/lloyd-chapman/obama-administration-will_b_674073.html)

“President Obama is not fooling anyone. These 5 o’clock Friday afternoon press releases are like sending up a signal flare that the data is fabricated,” ASBL President Lloyd Chapman said. “Every year billions of dollars in federal contracts are diverted to Fortune 500 corporations and other large businesses, and every year the government fabricates its numbers. It is time for Congress and the Obama Administration to pass H.R. 2568, the Fairness and Transparency in Contracting Act, and end this abuse once and for all.”

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