Do these companies sound like small businesses to you? Halliburton, Rolls-Royce, Wal-Mart, Home Depot, John Deere, Dell Computer, Xerox, Sherwin-Williams, and British Aerospace (BAE). How about Buhrmann NV in Amsterdam with 26,000 employees worldwide?
These are just a few of the thousands of corporate giants from around the world that your administration is giving billions of dollars a month in government small business contracts to.
Since 2003, there have been over a dozen federal investigations that found Fortune 500 firms and thousands of large businesses are receiving government small business contracts. The Small Business Administration (SBA) Office of Inspector General described the magnitude of this problem very eloquently in report 5-15. The report states, "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."
When you were running for president, you seemed to understand the staggering negative impact this problem was having on our economy.
Let me remind you of what you said during the campaign, "98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants."
You were absolutely right, small businesses are the backbone of our nation's economy. In fact, according to the latest statistics from the U.S. Census Bureau, small businesses with less than 100 employees create over 97 percent of all new jobs in America.
Nobel Prize winning economist Paul Krugman said your economic policies are almost certain to fail, and they are, "more than disappointing. In fact, it fills me with a sense of despair." Ditto for me.
Allowing Fortune 500 firms to participate in economic stimulus programs for small businesses, especially during a recession, is absolutely moronic and asinine. How in the world do you expect to create jobs and stimulate the economy if you won't even stop the diversion of billions of dollars in federal small business contracts away from the middle class firms that create 97 percent of all new jobs in this country?
Here is my suggestion, why don't you do what you said you would do during the campaign and stop giving federal small business contracts to "corporate giants"? I even have a way you can accomplish that at no additional cost to the taxpayers. I have written legislation titled the "Fairness and Transparency in Contracting Act." It is based on one of the most foundational principals of the original Small Business Act of 1953, which states that a small business must be "independently owned." My lawyers all tell me that would clearly exclude publicly traded firms. The Fairness and Transparency in Contracting Act simply says, the federal government can no longer report awards to publicly traded companies and their subsidiaries as small business awards. Tah Dah, no more small business contracts going to "corporate giants."
Your economic stimulus plan calls for $111 billion in infrastructure spending this year. My guess is about 90 percent of that money will go to big businesses. I don't know if anyone has told you this, but big businesses in America have not created one net new job since 1977.
With my plan, you simply stop giving government SMALL BUSINESS CONTRACTS on existing infrastructure spending to "CORPORATE GIANTS." I have won several Freedom of Information Act cases against the government and I have tons of data that indicates around $100 billion a year in federal small business contracts are being diverted to big businesses. Ask Paul Krugman, or one of your top economic advisors like Dr. Laura Tyson, if you can create any new jobs and stimulate the national economy by redirecting $100 billion a year in current federal infrastructure spending to the middle class firms that create over 97 percent of all new jobs in America.
$100 billion a year, year-after-year, redirected to the American small businesses that create 97 percent of all new jobs, using the original congressional intent of a 55-year-old economic stimulus program called the Small Business Act. Did I mention that it's free to the taxpayers? What's not to love?
P.S. How about a quick executive order, and we can get this economy back on track pronto?
Sincerely,
Lloyd Chapman
President, American Small Business League
Tuesday, May 12, 2009
Thursday, May 7, 2009
Small Business Contracting Scandal Celebrates its 6-Year Anniversary
Petaluma, Calif. - The American Small Business League (ASBL) has sent six separate cakes to: the Administrator of the Small Business Administration Karen Mills, the chair and ranking member of both the House and Senate small business committees, and the former Chair of the House Committee on Small Business, Rep. Donald Manzullo (R - IL).
Each cake has been decorated with, "Happy 6th anniversary small business contracting fraud." A note with each cake says:
"It's now been 6 years since the first congressional hearing on the diversion of federal small business contracts to large corporations and there has been no legislation. Why? Support the American Small Business League's Fairness and Transparency in Contracting Act."
The ASBL is hoping to bring attention to the fact that although the first hearing on the diversion of federal small business contracts to Fortune 500 firms was held six years ago, no legislation has been passed to address the abuses.
Since 2003, a series of over a dozen federal investigations have all found that every year billions of dollars in federal small business contracts actually wind up in the hands of Fortune 500 firms.
The ASBL estimates over $100 billion a year in federal small business contracts are diverted to large businesses.
During the 2008 Presidential election, President Barack Obama 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)
President Obama has consistently refused to adopt any legislation or policy to honor his campaign promise.
The ASBL has drafted, "The Fairness and Transparency in Contracting Act," which it believes could create millions of jobs in America by stopping the flow of federal small business contracts to large businesses and redirecting those funds to middle class firms. According to the U.S. Census Bureau, firms with less than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of all new jobs in America.
"It's been 6 years since this issue was uncovered. As America sinks deeper and deeper into an economic recession, it's time for President Obama to do what he said he was going to do during the campaign, and end the diversion of federal contracts earmarked for middle class firms to corporate giants," ASBL President Lloyd Chapman said.
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Each cake has been decorated with, "Happy 6th anniversary small business contracting fraud." A note with each cake says:
"It's now been 6 years since the first congressional hearing on the diversion of federal small business contracts to large corporations and there has been no legislation. Why? Support the American Small Business League's Fairness and Transparency in Contracting Act."
The ASBL is hoping to bring attention to the fact that although the first hearing on the diversion of federal small business contracts to Fortune 500 firms was held six years ago, no legislation has been passed to address the abuses.
Since 2003, a series of over a dozen federal investigations have all found that every year billions of dollars in federal small business contracts actually wind up in the hands of Fortune 500 firms.
The ASBL estimates over $100 billion a year in federal small business contracts are diverted to large businesses.
During the 2008 Presidential election, President Barack Obama 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)
President Obama has consistently refused to adopt any legislation or policy to honor his campaign promise.
The ASBL has drafted, "The Fairness and Transparency in Contracting Act," which it believes could create millions of jobs in America by stopping the flow of federal small business contracts to large businesses and redirecting those funds to middle class firms. According to the U.S. Census Bureau, firms with less than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of all new jobs in America.
"It's been 6 years since this issue was uncovered. As America sinks deeper and deeper into an economic recession, it's time for President Obama to do what he said he was going to do during the campaign, and end the diversion of federal contracts earmarked for middle class firms to corporate giants," ASBL President Lloyd Chapman said.
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Monday, May 4, 2009
Lloyd Chapman on CNN Radio: Obama Ignores Simple Solution to Stimulate Economy
The President of the American Small Business League (ASBL) Lloyd Chapman was a featured guest on CNN Radio's, Wall Street Shuffle on Friday May 1, regarding the Obama Administration and its failure to address the diversion of federal small business contracts to corporate giants.
Please click the following link to listen:
http://thewallstreetshuffle.com/podcasts/050109-Seg3.mp3
Please click the following link to listen:
http://thewallstreetshuffle.com/podcasts/050109-Seg3.mp3
Friday, May 1, 2009
Wednesday, April 29, 2009
Lloyd Chapman: Dear President Obama, You Lied to Me
I endorsed you during the primary; you even put my endorsement on the front page of your campaign website. I donated thousands of dollars to your campaign, and I got up at 4:30 a.m. day-after-day doing radio shows coast-to-coast campaigning for you on both progressive and conservative radio shows.
Like millions of Americans, I was so thrilled at what I thought was the first President in my lifetime that would truly represent all of the American people.
I am a passionate and successful advocate for small businesses. I have been suing the federal government and winning lawsuits on behalf of small business for twenty years. I fight the government year-after-year to stop what 99 percent of all Americans would certainly agree is a deplorable and unbelievably damaging government policy of giving small business contracts to Fortune 500 firms.
In Report 5-15, the Small Business Administration Office of Inspector General referred to the diversion of government small business contracts to Fortune 500 firms 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)
On February 22, 2008, you responded to a series of federal investigations on the topic and 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 next thing I knew, you changed your campaign website to make it look like you never made that statement. What happened? (http://my.barackobama.com/page/content/sbhome/)
This is not gun control, gay marriage, abortion or Middle East policy. It's FORTUNE 500 FIRMS GETTING BILLIONS OF DOLLARS IN FEDERAL SMALL BUSINESS CONTRACTS.
Now, it's your 100th day in office. You have come out with numerous small business rescue plans and stimulus plans, and yet today small businesses in all 50 states are still having to compete with "corporate giants" for even the most minuscule government small business contracts for goods and services.
I know you're busy, but you might want to take a look at the most recent U.S. Census Bureau data. Firms with less than 100 employees create over 97 percent of all new jobs in America, and employ over 50.2 percent of our nation's private sector workforce.
Aren't you the guy that is supposed to create millions of new jobs in America? How do you expect to do that if you won't even address the rampant fraud and abuse in existing federal economic stimulus programs for the firms that create 97 percent of ALL NEW JOBS. That's right, 97 percent.
Barack, listen to me, if you don't get this economy turned around you're not going to get re-elected.
The way I see it, you can take care of this the easy way or the hard way. You can be a big hero to the middle class, and do something that will really stimulate the economy. If you continue to ignore the issue until the next major federal investigation, or the next major media story, it's going to be tough to explain why Fortune 500 firms are getting federal small business contracts during a recession, or worse, a depression.
That could really put a major kink in your "change we can believe in" and "an end to business as usual in Washington" mantra.
Since 2003, there have been over 15 federal investigations into this issue and hundreds of stories in the mainstream media. I can promise you this is not going to stop. More embarrassing investigations and stories are a certainty. (http://www.asbl.com/documentlibrary.html)
I can also promise you I'm not going away. You told us to hold you accountable, and I promise you that is just what I am going to do. You know how much trouble I can cause with my barrage of freedom of information requests and my unrelenting legal campaign. Entrepreneur magazine said I might be a "modern-day Cesar Chavez" for small business. That should concern you; we all know how much trouble he caused for the "corporate giants."
Do the right thing Barack; do something that you can look back on twenty years from now and be proud of. Do what you said you would do. After all, you were absolutely right during the campaign when you said, "It is time to end the diversion of federal small business contracts to corporate giants."
-###-
Like millions of Americans, I was so thrilled at what I thought was the first President in my lifetime that would truly represent all of the American people.
I am a passionate and successful advocate for small businesses. I have been suing the federal government and winning lawsuits on behalf of small business for twenty years. I fight the government year-after-year to stop what 99 percent of all Americans would certainly agree is a deplorable and unbelievably damaging government policy of giving small business contracts to Fortune 500 firms.
In Report 5-15, the Small Business Administration Office of Inspector General referred to the diversion of government small business contracts to Fortune 500 firms 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)
On February 22, 2008, you responded to a series of federal investigations on the topic and 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 next thing I knew, you changed your campaign website to make it look like you never made that statement. What happened? (http://my.barackobama.com/page/content/sbhome/)
This is not gun control, gay marriage, abortion or Middle East policy. It's FORTUNE 500 FIRMS GETTING BILLIONS OF DOLLARS IN FEDERAL SMALL BUSINESS CONTRACTS.
Now, it's your 100th day in office. You have come out with numerous small business rescue plans and stimulus plans, and yet today small businesses in all 50 states are still having to compete with "corporate giants" for even the most minuscule government small business contracts for goods and services.
I know you're busy, but you might want to take a look at the most recent U.S. Census Bureau data. Firms with less than 100 employees create over 97 percent of all new jobs in America, and employ over 50.2 percent of our nation's private sector workforce.
Aren't you the guy that is supposed to create millions of new jobs in America? How do you expect to do that if you won't even address the rampant fraud and abuse in existing federal economic stimulus programs for the firms that create 97 percent of ALL NEW JOBS. That's right, 97 percent.
Barack, listen to me, if you don't get this economy turned around you're not going to get re-elected.
The way I see it, you can take care of this the easy way or the hard way. You can be a big hero to the middle class, and do something that will really stimulate the economy. If you continue to ignore the issue until the next major federal investigation, or the next major media story, it's going to be tough to explain why Fortune 500 firms are getting federal small business contracts during a recession, or worse, a depression.
That could really put a major kink in your "change we can believe in" and "an end to business as usual in Washington" mantra.
Since 2003, there have been over 15 federal investigations into this issue and hundreds of stories in the mainstream media. I can promise you this is not going to stop. More embarrassing investigations and stories are a certainty. (http://www.asbl.com/documentlibrary.html)
I can also promise you I'm not going away. You told us to hold you accountable, and I promise you that is just what I am going to do. You know how much trouble I can cause with my barrage of freedom of information requests and my unrelenting legal campaign. Entrepreneur magazine said I might be a "modern-day Cesar Chavez" for small business. That should concern you; we all know how much trouble he caused for the "corporate giants."
Do the right thing Barack; do something that you can look back on twenty years from now and be proud of. Do what you said you would do. After all, you were absolutely right during the campaign when you said, "It is time to end the diversion of federal small business contracts to corporate giants."
-###-
Tuesday, April 28, 2009
Obama Alienates Core Constituents in First 100 Days
FOR IMMEDIATE RELEASE
April 28, 2009
Petaluma, Calif. - Without the support of women, minorities and small business owners across the nation, President Obama would still be Senator Obama.
After just 100 days in office, President Obama has managed to alienate a multitude of his staunchest supporters by going back on key campaign promises and ignoring some of their most important issues.
Beginning in 2003, a consistent flow of federal investigations have been released that found billions of dollars in federal small business contracts were intentionally diverted to Fortune 500 firms. Several investigations uncovered cases of blatant fraud. The Small Business Administration (SBA) Office of Inspector General released Report 5-15, which referred to the rampant fraud and abuse as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today..."
During his campaign for President, Barack Obama acknowledged the magnitude of the problem and released the statement, "It is time to end the diversion of federal small business contracts to corporate giants."
To date, President Obama has consistently refused to propose any policy or legislation to address the problem. As a result, during the first 100 days of his administration, middle class firms across America have lost approximately $28.8 billion in federal small business contracts to "corporate giants." That number will top $100 billion by the end of President Obama's first year in office.
During the campaign, President Obama promised women business owners he would fully implement the federal law establishing a 5 percent woman-owned business set-aside federal contracting goal. To date, he has failed to do so, and there is no indication he has any plans to establish the program. Woman-owned firms continue to lose billions of dollars every month in federal contracts eight years after the program was signed into law.
When Barack Obama's victory over John McCain in the Presidential election was announced, millions of African Americans were moved to tears. They cried tears of joy with the belief that decades of racial discrimination would finally be over.
Today, minority business owners watch in stunned disbelief as the first African American President and Attorney General allow the Defense Department to completely dismantle federal economic stimulus programs to direct just 5 percent of federal contracts to minority-owned firms. Thousands of minority-owned businesses around the country will be forced to close their doors.
Based on the actions of his first 100 days in office, America's first African American President may be the first President in history to dismantle federal economic stimulus programs designed to create jobs for women, minorities and thousands of other small businesses.
-###-
April 28, 2009
Petaluma, Calif. - Without the support of women, minorities and small business owners across the nation, President Obama would still be Senator Obama.
After just 100 days in office, President Obama has managed to alienate a multitude of his staunchest supporters by going back on key campaign promises and ignoring some of their most important issues.
Beginning in 2003, a consistent flow of federal investigations have been released that found billions of dollars in federal small business contracts were intentionally diverted to Fortune 500 firms. Several investigations uncovered cases of blatant fraud. The Small Business Administration (SBA) Office of Inspector General released Report 5-15, which referred to the rampant fraud and abuse as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today..."
During his campaign for President, Barack Obama acknowledged the magnitude of the problem and released the statement, "It is time to end the diversion of federal small business contracts to corporate giants."
To date, President Obama has consistently refused to propose any policy or legislation to address the problem. As a result, during the first 100 days of his administration, middle class firms across America have lost approximately $28.8 billion in federal small business contracts to "corporate giants." That number will top $100 billion by the end of President Obama's first year in office.
During the campaign, President Obama promised women business owners he would fully implement the federal law establishing a 5 percent woman-owned business set-aside federal contracting goal. To date, he has failed to do so, and there is no indication he has any plans to establish the program. Woman-owned firms continue to lose billions of dollars every month in federal contracts eight years after the program was signed into law.
When Barack Obama's victory over John McCain in the Presidential election was announced, millions of African Americans were moved to tears. They cried tears of joy with the belief that decades of racial discrimination would finally be over.
Today, minority business owners watch in stunned disbelief as the first African American President and Attorney General allow the Defense Department to completely dismantle federal economic stimulus programs to direct just 5 percent of federal contracts to minority-owned firms. Thousands of minority-owned businesses around the country will be forced to close their doors.
Based on the actions of his first 100 days in office, America's first African American President may be the first President in history to dismantle federal economic stimulus programs designed to create jobs for women, minorities and thousands of other small businesses.
-###-
Monday, April 27, 2009
Obama Continuing Bush Anti-Small Business Policies
FOR IMMEDIATE RELEASE
April 27, 2009
Petaluma, Calif. - President Barack Obama has outraged small business owners across the country by continuing Bush Administration policies that divert federal small business contracts to Fortune 500 firms.
Since 2003, over a dozen federal investigations have been released, which found billions of dollars in federal small business contracts have actually wound up in the hands of some of the largest firms in the United States and Europe. (http://www.asbl.com/documentlibrary.html)
In 2005, the SBA's own Office of Inspector General referred to the diversion of federal small business contracts to corporate giants 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)
The nation's largest newspapers have all covered the story along with major television networks such as ABC, CBS and CNN. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
In February of 2008, during the Presidential campaign, President Obama promised to end the abuses 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)
To date, President Obama has consistantly refused to propose any policies or legislation to address the issue. President Obama refused to include any solutions to the issue in any of his small business rescue and stimulus plans. Since President Obama has taken office, approximately $2 billion a week in federal small business contracts have gone to Fortune 500 firms and thousands of other large businesses. (http://www.asbl.com/documents/BOsmallbusinesspolicy.pdf)
According to the latest U.S. Census Bureau statistics 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.4 percent of the private sector workforce and create over 97 percent of all new jobs in America. President Obama promised to create millions of new jobs in America, but so far, the small businesses that create the lion's share of new jobs have not seen one dime of federal stimulus funds under any of President Obama's stimulus plans.
Now, in addition to being shut out of all federal stimulus funds, small businesses are losing billions of dollars in federal small business contracts every month. President Obama has consistently refused to make good on his February 2008 campaign promise to stop the flow of federal small business contracts to corporate giants.
Small business owners and advocates are disappointed and angered that President Obama has decided to continue the Bush Administration's anti-small business policies. Even in the face of the highest national unemployment statistics in 26 years, President Obama is still refusing to make good on his most important campaign promise to America's 27 million small businesses.
-###-
April 27, 2009
Petaluma, Calif. - President Barack Obama has outraged small business owners across the country by continuing Bush Administration policies that divert federal small business contracts to Fortune 500 firms.
Since 2003, over a dozen federal investigations have been released, which found billions of dollars in federal small business contracts have actually wound up in the hands of some of the largest firms in the United States and Europe. (http://www.asbl.com/documentlibrary.html)
In 2005, the SBA's own Office of Inspector General referred to the diversion of federal small business contracts to corporate giants 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)
The nation's largest newspapers have all covered the story along with major television networks such as ABC, CBS and CNN. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
In February of 2008, during the Presidential campaign, President Obama promised to end the abuses 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)
To date, President Obama has consistantly refused to propose any policies or legislation to address the issue. President Obama refused to include any solutions to the issue in any of his small business rescue and stimulus plans. Since President Obama has taken office, approximately $2 billion a week in federal small business contracts have gone to Fortune 500 firms and thousands of other large businesses. (http://www.asbl.com/documents/BOsmallbusinesspolicy.pdf)
According to the latest U.S. Census Bureau statistics 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.4 percent of the private sector workforce and create over 97 percent of all new jobs in America. President Obama promised to create millions of new jobs in America, but so far, the small businesses that create the lion's share of new jobs have not seen one dime of federal stimulus funds under any of President Obama's stimulus plans.
Now, in addition to being shut out of all federal stimulus funds, small businesses are losing billions of dollars in federal small business contracts every month. President Obama has consistently refused to make good on his February 2008 campaign promise to stop the flow of federal small business contracts to corporate giants.
Small business owners and advocates are disappointed and angered that President Obama has decided to continue the Bush Administration's anti-small business policies. Even in the face of the highest national unemployment statistics in 26 years, President Obama is still refusing to make good on his most important campaign promise to America's 27 million small businesses.
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