Petaluma, Calif. - Last week, President Obama announced his administration's plan for a, "New Small Business Lending Initiative." The new initiative is the next installment in a series of speeches by President Obama, which have yet to yield any results for the small business community.
In his speech President Obama stated, "This administration is going to stand behind small businesses. You are our highest priority because we are confident that when you are succeeding, America succeeds." (http://www.whitehouse.gov/the-press-office/remarks-president-small-business-initiatives-landover-md) Over the past year, President Obama promised to restore the Small Business Administration's (SBA) budget, restore the SBA Administrator to a cabinet level position, implement the 5 percent set-aside goal for women owned firms, and stop the diversion of federal small business contracts to corporate giants. To date, none of these promises have been honored. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
Since the recession began, the government has spent roughly $2.8 trillion to stimulate our nation's economy. (http://money.cnn.com/news/storysupplement/economy/bailouttracker/) President Obama stated that stimulus spending has led to small businesses receiving $13 billion in new loans and $4.3 billion in federal contracts, for a total of $17.3 billion. That means small businesses have received only 0.6 percent out of the $2.8 trillion in stimulus funds invested by the government. In comparison, AIG received $180 billion in taxpayer money, while America's 27 million small businesses have received $17.3 billion.
Regarding the new initiative, Keith Girard in Allbusiness.com stated, "whether they [Obama Administration] will get desperately needed capital to small businesses in a meaningful way is problematic at best." (http://www.allbusiness.com/economy-economic-indicators/economic-conditions-depression/13271042-1.html) On the Huffington Post, Arianna Huffington stated, "if this were really a high-priority for the administration, it could, you know, actually do something about it. Right now. The executive branch has plenty of weapons at its disposal to force banks still dependent on billions of dollars in taxpayer funds and guarantees to change behavior." (http://www.huffingtonpost.com/arianna-huffington/barack-obama-is-doing-my_b_334631.html)
Last year President Obama stated that for every billion dollars spent, 40,000 new jobs would be created. (http://bit.ly/2eiyas) Based on the Obama Administration's estimates regarding job creation, stimulus spending to date should have created 640,000 jobs, however, a recent report has revealed that only 30,383 jobs have been created. (http://www.recovery.gov/Pages/home.aspx)
On August 18, President Obama announced a government-wide plan led by SBA Administrator Karen Mills and Commerce Secretary Gary Locke to increase contracting opportunities for small businesses. The plan included over 200 events nationwide within 90 days; over 70 days after the announcement no schedule of these events has been released. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_09-58.pdf)
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Wednesday, October 28, 2009
Monday, October 26, 2009
Upcoming Obama Conference Could Be Bad News for Small Business
FOR IMMEDIATE RELEASE
October 26, 2009
Petaluma, Calif. – On Wednesday, October 21, President Barack Obama announced plans to convene a conference of "regulators, congressional leaders, lenders and small businesses to determine what additional steps we can take to get credit flowing to small businesses that want to expand and create more jobs." (http://www.asbl.com/documents/Remarks_by_obama_on_small_business_initiatives.pdf)
Small business groups like the American Small Business League (ASBL) are concerned the real agenda of the upcoming Obama Administration small business conference will be to adopt legislation and policy that will change the definition of a small business and divert federal small business contracts to wealthy venture capitalists. (http://www.vcjnews.com/story.asp?sectioncode=26&storycode=46450)
The Small Business Act requires that a small business be "independently owned." Firms that are owned and controlled by venture capitalists are not considered small businesses in federal small business contracting and grant programs.
The venture capital industry, led by the National Venture Capital Association (NVCA) has spent millions of dollars lobbying members of Congress to change the current definition of a small business to allow even billionaire venture capitalists to participate in federal small business contracting programs. (http://maplight.org/map/us/interest/F2500)
During his 2003 race for a seat in the U.S. Senate, President Obama developed deep ties within the venture capital industry. Since then, President Obama has received significant contributions from the NVCA and its members.
Both the House and Senate small business committees have attempted to pass legislation that could destroy millions of legitimate small businesses by diverting billions of dollars in federal small business contracts to wealthy venture capitalists that have contributed millions of dollars to key democratic leaders in Congress.
House Small Business Committee Chair Nydia M. Velázquez (D - NY) introduced H.R. 3567, Small Business Investment Expansion Act of 2007, which would have changed the definition of a small business for all federal programs to include firms owned and controlled by venture capitalists. In a story titled, "Velázquez Champions VC Firms at Small Business Expense," by Keith Girard, AllBusiness.com, Velázquez was accused of "quarterbacking the venture capital industry's efforts." (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
"I predict that President Obama will try to cheat legitimate small businesses by diverting billions of dollars in federal small business contracts to his wealthy venture capitalist contributors under the guise of 'increasing access to capital for small businesses,' " ASBL President Lloyd Chapman said.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 26, 2009
Petaluma, Calif. – On Wednesday, October 21, President Barack Obama announced plans to convene a conference of "regulators, congressional leaders, lenders and small businesses to determine what additional steps we can take to get credit flowing to small businesses that want to expand and create more jobs." (http://www.asbl.com/documents/Remarks_by_obama_on_small_business_initiatives.pdf)
Small business groups like the American Small Business League (ASBL) are concerned the real agenda of the upcoming Obama Administration small business conference will be to adopt legislation and policy that will change the definition of a small business and divert federal small business contracts to wealthy venture capitalists. (http://www.vcjnews.com/story.asp?sectioncode=26&storycode=46450)
The Small Business Act requires that a small business be "independently owned." Firms that are owned and controlled by venture capitalists are not considered small businesses in federal small business contracting and grant programs.
The venture capital industry, led by the National Venture Capital Association (NVCA) has spent millions of dollars lobbying members of Congress to change the current definition of a small business to allow even billionaire venture capitalists to participate in federal small business contracting programs. (http://maplight.org/map/us/interest/F2500)
During his 2003 race for a seat in the U.S. Senate, President Obama developed deep ties within the venture capital industry. Since then, President Obama has received significant contributions from the NVCA and its members.
Both the House and Senate small business committees have attempted to pass legislation that could destroy millions of legitimate small businesses by diverting billions of dollars in federal small business contracts to wealthy venture capitalists that have contributed millions of dollars to key democratic leaders in Congress.
House Small Business Committee Chair Nydia M. Velázquez (D - NY) introduced H.R. 3567, Small Business Investment Expansion Act of 2007, which would have changed the definition of a small business for all federal programs to include firms owned and controlled by venture capitalists. In a story titled, "Velázquez Champions VC Firms at Small Business Expense," by Keith Girard, AllBusiness.com, Velázquez was accused of "quarterbacking the venture capital industry's efforts." (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
"I predict that President Obama will try to cheat legitimate small businesses by diverting billions of dollars in federal small business contracts to his wealthy venture capitalist contributors under the guise of 'increasing access to capital for small businesses,' " ASBL President Lloyd Chapman said.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, October 22, 2009
Obama Small Business Plan Falls Short of Real Solutions
FOR IMMEDIATE RELEASE
October 22, 2009
Petaluma, Calif. - On Wednesday, October 21, President Barack Obama held a press conference in Landover, MD to announce the administration's plans for a, "New Small Business Lending Initiative." According to President Obama's statements, the initiative would focus almost entirely on increasing the ceilings on government loans to small businesses. (http://bit.ly/47ZRLy)
However, President Obama once again failed to address widespread abuses in federal small business contracting programs, which have lead to the yearly diversion of billions of dollars in contracts intended for small businesses to corporate giants. According to the administration's most recent small business contracting data, which was released on August 21st, 2009, the top recipient of federal small business contracts during fiscal year (FY) 2008 was Textron Inc. Textron is a Fortune 500 corporation, with 43,000 employees and over $14 billion in annual sales. (http://bit.ly/W0EB1)
In addition to Textron, corporate giants like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales Communications were included in the Obama Administration's small business contracting data.
Corporate giants in Asia and Europe were also included. During FY 2008, Ssangyong Corporation headquartered in Seoul, South Korea received over $254 million in small business contracts and Finmeccanica SpA, headquartered in Italy with 73,000 employees, received over $283 million.
Since 2003, over 15 federal investigations have found that billions of dollars a month in federal small business contracts are diverted to large businesses. (http://bit.ly/3ihWSI)
In February of 2008, President 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." (http://bit.ly/4fRrGq)
The American Small Business League (ASBL) points to the fact that President Obama has refused to adopt policy or support legislation to address the problem. ASBL projects that legitimate small businesses lose up to $100 billion a year in federal contracts due to rampant abuses in government contracting programs.
"If you want to know the truth about President Obama's commitment to small businesses you have to realize that about $1 million a minute in federal small business contracts is going to some of biggest companies around the world. He knows it. He said he would stop it more than a year ago, and yet he has done nothing. Look at the facts," ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 22, 2009
Petaluma, Calif. - On Wednesday, October 21, President Barack Obama held a press conference in Landover, MD to announce the administration's plans for a, "New Small Business Lending Initiative." According to President Obama's statements, the initiative would focus almost entirely on increasing the ceilings on government loans to small businesses. (http://bit.ly/47ZRLy)
However, President Obama once again failed to address widespread abuses in federal small business contracting programs, which have lead to the yearly diversion of billions of dollars in contracts intended for small businesses to corporate giants. According to the administration's most recent small business contracting data, which was released on August 21st, 2009, the top recipient of federal small business contracts during fiscal year (FY) 2008 was Textron Inc. Textron is a Fortune 500 corporation, with 43,000 employees and over $14 billion in annual sales. (http://bit.ly/W0EB1)
In addition to Textron, corporate giants like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales Communications were included in the Obama Administration's small business contracting data.
Corporate giants in Asia and Europe were also included. During FY 2008, Ssangyong Corporation headquartered in Seoul, South Korea received over $254 million in small business contracts and Finmeccanica SpA, headquartered in Italy with 73,000 employees, received over $283 million.
Since 2003, over 15 federal investigations have found that billions of dollars a month in federal small business contracts are diverted to large businesses. (http://bit.ly/3ihWSI)
In February of 2008, President 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." (http://bit.ly/4fRrGq)
The American Small Business League (ASBL) points to the fact that President Obama has refused to adopt policy or support legislation to address the problem. ASBL projects that legitimate small businesses lose up to $100 billion a year in federal contracts due to rampant abuses in government contracting programs.
"If you want to know the truth about President Obama's commitment to small businesses you have to realize that about $1 million a minute in federal small business contracts is going to some of biggest companies around the world. He knows it. He said he would stop it more than a year ago, and yet he has done nothing. Look at the facts," ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, October 20, 2009
Justice Department Drops Appeal of Federal Court Ruling
FOR IMMEDIATE RELEASE
October 20, 2009
Petaluma, Calif. - The U.S. Department of Justice has dropped its appeal of a ruling by the U.S. District Court for the Northern District of California awarding legal fees to the American Small Business League (ASBL). The case was scheduled to be heard by the 9th Circuit Court of Appeals early next year. (http://www.asbl.com/documents/order_dismissingAppeal_SBA_names.pdf, http://www.asbl.com/documents/motion_dismissAppeal_SBA_Fees.pdf)
Prior to dropping its appeal, the Justice Department offered to drop its appeal of the District Court's ruling for attorney's fees if the ASBL agreed to waive legal fees it incurred during the appellant process. The ASBL declined the Justice Department's offer stating that it preferred to have the case heard by the 9th Circuit Court of Appeals.
The ASBL requested the specific names of the firms that were coded as small businesses for FY 2005 and 2006 and the specific dollar amounts that were awarded to those firms from the U.S. Small Business Administration (SBA). The request was made under the Freedom of Information Act (FOIA).
The SBA refused to comply with the ASBL's request for the data. During litigation, the SBA claimed that it had no information in its possession regarding the specific names of firms that had received federal small business contracts.
In the court's ruling, United States District Judge Marilyn H. Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
As a result of Patel's ruling, the SBA was ordered to turn over the requested information and pay all of the legal fees incurred by the ASBL during the initial litigation process. The information the ASBL finally obtained indicated that the SBA, the General Services Administration (GSA) and virtually every other federal agency diverted billions of dollars in federal small business contracts to Fortune 500 firms and dozens of large businesses in Europe and Asia. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
Some of the firms that received federal small business contracts included Boeing, Lockheed Martin, Northrop Grumman, Raytheon, General Dynamics, GTSI, Rolls-Royce, Dell Computer, Thales Communications, and British Aerospace (BAE).
The ASBL has estimated that legitimate small businesses are losing over $100 billion a year in federal small business contracts to corporate giants.
The ASBL drafted legislation titled, the Fairness and Transparency in Contracting Act, or H.R. 2568, which would halt the flow of federal small business contracts to large businesses. On May 21, 2009, Congressman Hank Johnson (D-GA-4) introduced the bill into the U.S. House of Representatives. To date, the bill has 15 co-sponsors and has been endorsed by more than 50 chambers of commerce and business organizations around the country.
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October 20, 2009
Petaluma, Calif. - The U.S. Department of Justice has dropped its appeal of a ruling by the U.S. District Court for the Northern District of California awarding legal fees to the American Small Business League (ASBL). The case was scheduled to be heard by the 9th Circuit Court of Appeals early next year. (http://www.asbl.com/documents/order_dismissingAppeal_SBA_names.pdf, http://www.asbl.com/documents/motion_dismissAppeal_SBA_Fees.pdf)
Prior to dropping its appeal, the Justice Department offered to drop its appeal of the District Court's ruling for attorney's fees if the ASBL agreed to waive legal fees it incurred during the appellant process. The ASBL declined the Justice Department's offer stating that it preferred to have the case heard by the 9th Circuit Court of Appeals.
The ASBL requested the specific names of the firms that were coded as small businesses for FY 2005 and 2006 and the specific dollar amounts that were awarded to those firms from the U.S. Small Business Administration (SBA). The request was made under the Freedom of Information Act (FOIA).
The SBA refused to comply with the ASBL's request for the data. During litigation, the SBA claimed that it had no information in its possession regarding the specific names of firms that had received federal small business contracts.
In the court's ruling, United States District Judge Marilyn H. Patel stated, "The court finds it curious the SBA's argument that it does not 'control' the very information it needs to carry out its duties and functions." (www.asbl.com/documents/26-2.pdf)
As a result of Patel's ruling, the SBA was ordered to turn over the requested information and pay all of the legal fees incurred by the ASBL during the initial litigation process. The information the ASBL finally obtained indicated that the SBA, the General Services Administration (GSA) and virtually every other federal agency diverted billions of dollars in federal small business contracts to Fortune 500 firms and dozens of large businesses in Europe and Asia. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
Some of the firms that received federal small business contracts included Boeing, Lockheed Martin, Northrop Grumman, Raytheon, General Dynamics, GTSI, Rolls-Royce, Dell Computer, Thales Communications, and British Aerospace (BAE).
The ASBL has estimated that legitimate small businesses are losing over $100 billion a year in federal small business contracts to corporate giants.
The ASBL drafted legislation titled, the Fairness and Transparency in Contracting Act, or H.R. 2568, which would halt the flow of federal small business contracts to large businesses. On May 21, 2009, Congressman Hank Johnson (D-GA-4) introduced the bill into the U.S. House of Representatives. To date, the bill has 15 co-sponsors and has been endorsed by more than 50 chambers of commerce and business organizations around the country.
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Friday, October 16, 2009
Corporate Giants Land Obama Small Business Funds Under ARRA
By Lloyd Chapman
President, American Small Business League
In December of 2008, President Barack Obama’s Presidential transition team estimated that for every billion dollars spent on federal infrastructure projects, 40,000 jobs would be created nationwide. (http://tiny.cc/POj7a ) Yet on Thursday, the Obama Administration released its first report on the distribution of dollars under the American Recovery and Reinvestment Act (ARRA) claiming that it has distributed $16 billion in stimulus funds and created 30, 383 jobs. (http://bit.ly/1ulfGz)
Based on the Obama Administration’s December 2008 estimates regarding job creation, the ARRA funds spent to date should have created 640,000 jobs. Thursday’s numbers represent a shortfall of 609, 617 jobs.
The American Small Business League (ASBL) maintains that if the Obama Administration had allocated more money for small businesses, the ARRA funds spent would have created significantly more jobs.
The ASBL points to the following:
On Oct. 2, the Small Business Administration claimed that small businesses had been awarded nearly 26 percent of all federal stimulus dollars awarded to date, or $4 billion. (http://www.govexec.com/dailyfed/1009/100609rb1.htm)
That said, the ASBL has found significant discrepancies in the government’s data, which are consistent with more than 15 federal investigations indicating that every year billions of dollars in federal contracts intended for small businesses actually go to some of the largest corporations in the world. Since 2003, firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, have received billions of dollars in federal small business contracts.
With that in mind, small businesses have received a mere fraction of the total dollars awarded by the government, while Fortune 500 corporations are reaping the benefits of the stimulus.
If President Obama is serious about creating jobs and stimulating our nation’s economy, he should honor his campaign promise to, “stop the diversion of federal small business contracts to corporate giants,” by issuing an executive order or by supporting H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. (http://bit.ly/4fRrGq, http://www.asbl.com/documents/hr2568.pdf)
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President, American Small Business League
In December of 2008, President Barack Obama’s Presidential transition team estimated that for every billion dollars spent on federal infrastructure projects, 40,000 jobs would be created nationwide. (http://tiny.cc/POj7a ) Yet on Thursday, the Obama Administration released its first report on the distribution of dollars under the American Recovery and Reinvestment Act (ARRA) claiming that it has distributed $16 billion in stimulus funds and created 30, 383 jobs. (http://bit.ly/1ulfGz)
Based on the Obama Administration’s December 2008 estimates regarding job creation, the ARRA funds spent to date should have created 640,000 jobs. Thursday’s numbers represent a shortfall of 609, 617 jobs.
The American Small Business League (ASBL) maintains that if the Obama Administration had allocated more money for small businesses, the ARRA funds spent would have created significantly more jobs.
The ASBL points to the following:
- According to data from the United States Census Bureau, businesses with fewer than 20 employees account for 90 percent of all U.S. firms, and are responsible for more than 97 percent of all net new jobs.
(http://www.inc.com/news/articles/200708/data.html)
- Small businesses are responsible for more than 50 percent of the Gross Domestic Product (GDP), 90 percent of innovations and over 50 percent of our nation’s non-farm private sector workforce. (http://www.sba.gov/advo/research/profiles/08us.pdf)
On Oct. 2, the Small Business Administration claimed that small businesses had been awarded nearly 26 percent of all federal stimulus dollars awarded to date, or $4 billion. (http://www.govexec.com/dailyfed/1009/100609rb1.htm)
That said, the ASBL has found significant discrepancies in the government’s data, which are consistent with more than 15 federal investigations indicating that every year billions of dollars in federal contracts intended for small businesses actually go to some of the largest corporations in the world. Since 2003, firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in South Korea and the Italian Finmeccanica SpA, have received billions of dollars in federal small business contracts.
With that in mind, small businesses have received a mere fraction of the total dollars awarded by the government, while Fortune 500 corporations are reaping the benefits of the stimulus.
If President Obama is serious about creating jobs and stimulating our nation’s economy, he should honor his campaign promise to, “stop the diversion of federal small business contracts to corporate giants,” by issuing an executive order or by supporting H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. (http://bit.ly/4fRrGq, http://www.asbl.com/documents/hr2568.pdf)
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Monday, October 12, 2009
Miami Herald: In Florida, 'small businesses' aren't all small
Small businesses are supposed to get a substantial percent of government contracts. But not all contract holders are really that small.
BY JIM WYSS
jwyss (at) MiamiHerald.com
What do Dell Computer, General Electric and Boeing have in common? These massive corporations were all counted as ``small businesses'' doing work in Florida last year.
The three firms -- along with a dozen other billion-dollar companies -- soaked up at least $76 million in federal contracts that were recorded as going to small businesses during fiscal year 2008, according to government data.
The issue of how federal dollars are spent is critical in Florida, where 90 percent of all businesses have fewer than 20 employees and government contracts represent a valuable lifeline amid a tanking economy.
While the federal government is obliged to put 23 percent of all direct, or prime, contracts in the hands of small firms, it has missed that mark for the past three years.
``Call me crazy, but I just don't think Fortune 500 companies should be counted as small-business contracts,'' said Lloyd Chapman, president of the American Small Business League. ``I just can't believe this is still going on.''
Please click here to read more: http://www.miamiherald.com/569/story/1276867.html
BY JIM WYSS
jwyss (at) MiamiHerald.com
What do Dell Computer, General Electric and Boeing have in common? These massive corporations were all counted as ``small businesses'' doing work in Florida last year.
The three firms -- along with a dozen other billion-dollar companies -- soaked up at least $76 million in federal contracts that were recorded as going to small businesses during fiscal year 2008, according to government data.
The issue of how federal dollars are spent is critical in Florida, where 90 percent of all businesses have fewer than 20 employees and government contracts represent a valuable lifeline amid a tanking economy.
While the federal government is obliged to put 23 percent of all direct, or prime, contracts in the hands of small firms, it has missed that mark for the past three years.
``Call me crazy, but I just don't think Fortune 500 companies should be counted as small-business contracts,'' said Lloyd Chapman, president of the American Small Business League. ``I just can't believe this is still going on.''
Please click here to read more: http://www.miamiherald.com/569/story/1276867.html
Monday, October 5, 2009
Obama Refusing to Give Contracts to Small Businesses as Unemployment Continues to Rise
FOR IMMEDIATE RELEASE
October 6, 2009
Petaluma, Calif. - According to the most recent data from the Federal Procurement Data System - Next Generation (FPDS-NG), the Obama Administration is continuing to award billions of dollars a month in federal small business contracts to corporate giants.
The top recipient was Fortune 500 firm Textron, which received $775.7 million in federal small business contracts. In addition to Textron, Ssangyong Corporation, which is headquartered in Seoul, South Korea received over $254 million in small business contracts; and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees, received over $283 million.
Other firms included in the Obama Administration's small business data were: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales Communications.
In February of 2009, Bechtel Bettis Inc. received a $128 million small business contract from the U.S. Department of Energy (DOE) under the Obama Administration.
(http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf)
Since 2003, more than 15 federal investigations have found that every year billions of dollars in federal small business contracts are diverted to corporate giants. Report 5-15 from the U.S. Small Business Administration (SBA) Office of Inspector General referred to the problem as, "One of the most important challenges facing the SBA and the entire federal government today." (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama recognized the problem when 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)
To date, the Obama Administration has not adopted any policies or legislation to honor that campaign promise.
On Friday, October 2, the U.S. Department of Labor (DOL) announced that unemployment hit 9.8 percent in the month of September. Moreover, DOL announced that when factoring in frustrated workers who have dropped out, taken part-time work or haven't looked recently; unemployment could be as high as 17 percent.
The American Small Business League (ASBL) believes unemployment is on the rise as a result of the Obama Administration's refusal to stop the diversion of billions of dollars a month in federal contracts earmarked for small businesses to corporate giants.
"It's hard not to question President Obama's sincerity about creating jobs when he is giving billions of dollars a month in federal small business contracts to corporate giants around the world," ASBL President Lloyd Chapman said. "Until we stop this problem, unemployment is going to continue to rise."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
October 6, 2009
Petaluma, Calif. - According to the most recent data from the Federal Procurement Data System - Next Generation (FPDS-NG), the Obama Administration is continuing to award billions of dollars a month in federal small business contracts to corporate giants.
The top recipient was Fortune 500 firm Textron, which received $775.7 million in federal small business contracts. In addition to Textron, Ssangyong Corporation, which is headquartered in Seoul, South Korea received over $254 million in small business contracts; and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees, received over $283 million.
Other firms included in the Obama Administration's small business data were: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales Communications.
In February of 2009, Bechtel Bettis Inc. received a $128 million small business contract from the U.S. Department of Energy (DOE) under the Obama Administration.
(http://www.asbl.com/documents/20090806BechtelSB_DOE.pdf)
Since 2003, more than 15 federal investigations have found that every year billions of dollars in federal small business contracts are diverted to corporate giants. Report 5-15 from the U.S. Small Business Administration (SBA) Office of Inspector General referred to the problem as, "One of the most important challenges facing the SBA and the entire federal government today." (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama recognized the problem when 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)
To date, the Obama Administration has not adopted any policies or legislation to honor that campaign promise.
On Friday, October 2, the U.S. Department of Labor (DOL) announced that unemployment hit 9.8 percent in the month of September. Moreover, DOL announced that when factoring in frustrated workers who have dropped out, taken part-time work or haven't looked recently; unemployment could be as high as 17 percent.
The American Small Business League (ASBL) believes unemployment is on the rise as a result of the Obama Administration's refusal to stop the diversion of billions of dollars a month in federal contracts earmarked for small businesses to corporate giants.
"It's hard not to question President Obama's sincerity about creating jobs when he is giving billions of dollars a month in federal small business contracts to corporate giants around the world," ASBL President Lloyd Chapman said. "Until we stop this problem, unemployment is going to continue to rise."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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