FOR IMMEDIATE RELEASE
March 12, 2009
Petaluma, Calif. – The Small Business Administration (SBA) is being sued by the American Small Business League (ASBL) in United States District Court, Northern District of California for refusing to release the telephone records of SBA Press Office Director Mike Stamler. The ASBL requested Mr. Stamler's phone records under the Freedom of Information Act (FOIA). The ASBL believes Mr. Stamler engaged in an aggressive campaign to mislead the media and damage the organization's reputation.
The ASBL has won a series of federal lawsuits against the SBA, which forced the disclosure of information showing that the SBA had fabricated federal small business contracting data and covered-up the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 companies and other large businesses.
The ASBL expects to file an additional lawsuit against the SBA for refusing to release all of Mr. Stamler's emails for the years 2006 and 2007. The ASBL began requesting Mr. Stamler's communications after several journalists informed the organization that Mr. Stamler had libeled and slandered the ASBL and its President Lloyd Chapman, and embarked on an aggressive campaign to impugn the organization’s credibility with members of the media.
In one such example, after the Long Island Business News (LIBN) quoted ASBL President Lloyd Chapman in a story, the LIBN reporter received a profanity-riddled email from Mr. Stamler. In response, the LIBN reporter published a blog titled, "Expletives the SBA's Forte?" (http://libn.com/libizblog/2008/02/22/expletives-the-sbas-forte/)
The ASBL intends to continue gathering information on Mr. Stamler's campaign to libel and slander the organization and its President Lloyd Chapman in preparation for another lawsuit to be filed against the SBA for defamation of character.
The SBA's own Inspector General has released several investigations that found blatant fraud and abuses in SBA administered small business contracting programs. (http://www.sba.gov/IG/05-15.pdf)
In the past, the SBA responded to federal investigations and news stories, which found billions of dollars in small business contracts had gone to Fortune 500 corporations with a series of press releases claiming that the diversion of federal small business contracts to large corporations was a myth. (www.asbl.com/documents/sbamythvfact.pdf)
"There is no question that Mike Stamler and the SBA have tried to cover up the diversion of small business contracts to Fortune 500 corporations," ASBL President Lloyd Chapman said. "Based upon the information we have obtained so far, it's obvious that they have launched a massive campaign to attack our organization and impugn our credibility as we continue to expose the rampant fraud and abuse that has gone unchecked since 2002."
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Friday, March 13, 2009
Wednesday, March 11, 2009
Tuesday, March 10, 2009
Obama Economic Policy Falters Without Small Business Stimulus
FOR IMMEDIATE RELEASE
Petaluma, Calif. - Since President Barack Obama signed the stimulus bill, the Dow has dropped to a 12-year low and unemployment has jumped to a 25-year high. The most recent U.S. Census Bureau statistics could be the key to understanding why President Obama's economic stimulus bill hasn't worked so far and may never achieve its intended goal of creating millions of new jobs.
According to the most recent data, 98 percent of all U.S. firms have less than 100 employees. These firms are responsible for 98 percent of all new jobs in America and employ 50.2 percent of the private sector workforce. American small businesses are responsible for over 97 percent of all exported goods and generate the majority of innovations that come from the United States.
Not one dollar of the $2.3 trillion in economic stimulus funds will go to the 27 million small businesses where most Americans work. One hundred percent of the stimulus bill funds not destined for states, will go to the top 1 percent of U.S. firms. The firms in that top 1 percent have not created one net new job in America since 1977.
In addition to ignoring small businesses, which are the nation's top job creators in the stimulus bill, President Obama has refused to stop rampant fraud and abuse in existing federal economic stimulus programs for small businesses. During the Bush Administration, a series of over a dozen federal investigations found hundreds of billions of dollars in federal small business contracts were diverted to Fortune 500 firms. Millions of small businesses were adversely affected and thousands of hardworking small businesses were forced to close their doors as a result of the fraud and abuse. (http://www.asbl.com/documentlibrary.html)
President Obama acknowledged the magnitude of the problems in government small business programs 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://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
To date, President Obama has refused to make good on his campaign promise, by proposing policies to stop the fraud and abuse that have crippled federal economic stimulus programs for small businesses.
Things could get even worse for the economy and small business under the Obama Administration. President Obama has confirmed he will raise taxes on small business owners, and he is expected to support new loopholes in federal contracting law that will divert billions more in federal small business contracts away from the middle class and into the hands of wealthy venture capitalists that contributed heavily to his campaign.
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Petaluma, Calif. - Since President Barack Obama signed the stimulus bill, the Dow has dropped to a 12-year low and unemployment has jumped to a 25-year high. The most recent U.S. Census Bureau statistics could be the key to understanding why President Obama's economic stimulus bill hasn't worked so far and may never achieve its intended goal of creating millions of new jobs.
According to the most recent data, 98 percent of all U.S. firms have less than 100 employees. These firms are responsible for 98 percent of all new jobs in America and employ 50.2 percent of the private sector workforce. American small businesses are responsible for over 97 percent of all exported goods and generate the majority of innovations that come from the United States.
Not one dollar of the $2.3 trillion in economic stimulus funds will go to the 27 million small businesses where most Americans work. One hundred percent of the stimulus bill funds not destined for states, will go to the top 1 percent of U.S. firms. The firms in that top 1 percent have not created one net new job in America since 1977.
In addition to ignoring small businesses, which are the nation's top job creators in the stimulus bill, President Obama has refused to stop rampant fraud and abuse in existing federal economic stimulus programs for small businesses. During the Bush Administration, a series of over a dozen federal investigations found hundreds of billions of dollars in federal small business contracts were diverted to Fortune 500 firms. Millions of small businesses were adversely affected and thousands of hardworking small businesses were forced to close their doors as a result of the fraud and abuse. (http://www.asbl.com/documentlibrary.html)
President Obama acknowledged the magnitude of the problems in government small business programs 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://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
To date, President Obama has refused to make good on his campaign promise, by proposing policies to stop the fraud and abuse that have crippled federal economic stimulus programs for small businesses.
Things could get even worse for the economy and small business under the Obama Administration. President Obama has confirmed he will raise taxes on small business owners, and he is expected to support new loopholes in federal contracting law that will divert billions more in federal small business contracts away from the middle class and into the hands of wealthy venture capitalists that contributed heavily to his campaign.
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Monday, March 9, 2009
SBA Loses Fourth Lawsuit For Refusing to Release Contracting Data
Petaluma, Calif. – The Small Business Administration (SBA) has lost its fourth lawsuit to the American Small Business League (ASBL) in the 9th Circuit Court of Appeals. The ruling will increase transparency and set a new legal standard. The SBA will now be forced to release the names of any and all firms that received federal small business contracts.
In September of 2008, the SBA appealed a United States District Court ruling, which directed the agency to release the specific names of all recipients of federal small business contracts during fiscal years (FY) 2005 and 2006.
The ASBL filed suit against the SBA under the Freedom of Information Act (FOIA) after the SBA refused to comply with the ASBL’s request. The ASBL requested the data from the SBA as a means of proving the Bush Administration diverted billions of dollars in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large businesses.
Although the SBA is charged with the responsibility of overseeing and administering virtually every aspect of federal small business contracting programs; during proceedings in United States District Court, Northern District of California, SBA attorneys attempted to convince United States District Judge Marilyn H. Patel that the agency maintained no such information.
Patel dismissed the SBA’s excuse, ruling in favor of the ASBL. In the court’s decision, Patel stated, “The court finds 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)
Since 2002, over a dozen federal investigations have found that hundreds of billions of dollars in federal small business contracts have been diverted to corporate giants such as Lockheed Martin, Boeing, General Dynamics, Raytheon, L-3 Communications, Northrop Grumman and British Aerospace (BAE).
Report 5-15 from the SBA Office of Inspector General 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.sba.gov/IG/05-15.pdf)
The ASBL has drafted legislative language titled the, “Small Business Fairness and Transparency in Contracting Act,” which would end the diversion of billions of dollars in federal small business contracts to Fortune 500 firms, and redirect over $100 billion a year back into the middle class economy where over 97 percent of new jobs are created.
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In September of 2008, the SBA appealed a United States District Court ruling, which directed the agency to release the specific names of all recipients of federal small business contracts during fiscal years (FY) 2005 and 2006.
The ASBL filed suit against the SBA under the Freedom of Information Act (FOIA) after the SBA refused to comply with the ASBL’s request. The ASBL requested the data from the SBA as a means of proving the Bush Administration diverted billions of dollars in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large businesses.
Although the SBA is charged with the responsibility of overseeing and administering virtually every aspect of federal small business contracting programs; during proceedings in United States District Court, Northern District of California, SBA attorneys attempted to convince United States District Judge Marilyn H. Patel that the agency maintained no such information.
Patel dismissed the SBA’s excuse, ruling in favor of the ASBL. In the court’s decision, Patel stated, “The court finds 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)
Since 2002, over a dozen federal investigations have found that hundreds of billions of dollars in federal small business contracts have been diverted to corporate giants such as Lockheed Martin, Boeing, General Dynamics, Raytheon, L-3 Communications, Northrop Grumman and British Aerospace (BAE).
Report 5-15 from the SBA Office of Inspector General 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.sba.gov/IG/05-15.pdf)
The ASBL has drafted legislative language titled the, “Small Business Fairness and Transparency in Contracting Act,” which would end the diversion of billions of dollars in federal small business contracts to Fortune 500 firms, and redirect over $100 billion a year back into the middle class economy where over 97 percent of new jobs are created.
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Thursday, March 5, 2009
Obama Administration Capitulates in Legal Battle with the American Small Business League
FOR IMMEDIATE RELEASE
March 4, 2009
Petaluma, Calif. - The Obama Administration has capitulated in its appeal of a federal district court ruling in favor of the American Small Business League (ASBL). According to the court's briefing schedule, the Small Business Administration (SBA) was scheduled to deliver its appellate brief Wednesday. It failed to do so.
The ASBL filed suit against the SBA under the Freedom of Information Act (FOIA) after the agency refused to release the specific names of all firms that were coded by the federal government as small businesses for FY 2005 and FY 2006. During proceedings in United States District Court, Northern District of California, SBA attorneys attempted to convince United States District Judge Marilyn H. Patel that the agency did not possess any information on the actual recipients of federal small business contracts.
Patel rejected the SBA's excuse in her ruling in favor of the ASBL stating, "The court finds 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)
Since 2003, more than a dozen federal investigations have uncovered the diversion of up to $100 billion a year in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large firms in the United States and even Europe.
Report 5-15, from the SBA Office of Inspector General 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.sba.gov/IG/05-15.pdf)
More than 500 stories in the main stream media, as well as investigative reports by ABC, CBS and CNN found the Bush Administration had diverted hundreds of billions of dollars in federal small business contracts to corporate giants such as: Lockheed Martin, Boeing, Rolls Royce, Microsoft, Wal-Mart, L-3 Communications, British Aerospace Engineering (BAE) and Buhrmann NV, a Dutch firm with 17,000 employees in 26 countries.
"It is time for President Obama to make good on his campaign promise to stop the diversion of federal small business contracts to corporate giants. The abuses in these economic stimulus programs for small businesses are at least a contributing factor to our country's current economic catastrophe. President Obama should move swiftly to immediately end these abuses," ASBL President Lloyd Chapman said.
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March 4, 2009
Petaluma, Calif. - The Obama Administration has capitulated in its appeal of a federal district court ruling in favor of the American Small Business League (ASBL). According to the court's briefing schedule, the Small Business Administration (SBA) was scheduled to deliver its appellate brief Wednesday. It failed to do so.
The ASBL filed suit against the SBA under the Freedom of Information Act (FOIA) after the agency refused to release the specific names of all firms that were coded by the federal government as small businesses for FY 2005 and FY 2006. During proceedings in United States District Court, Northern District of California, SBA attorneys attempted to convince United States District Judge Marilyn H. Patel that the agency did not possess any information on the actual recipients of federal small business contracts.
Patel rejected the SBA's excuse in her ruling in favor of the ASBL stating, "The court finds 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)
Since 2003, more than a dozen federal investigations have uncovered the diversion of up to $100 billion a year in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large firms in the United States and even Europe.
Report 5-15, from the SBA Office of Inspector General 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.sba.gov/IG/05-15.pdf)
More than 500 stories in the main stream media, as well as investigative reports by ABC, CBS and CNN found the Bush Administration had diverted hundreds of billions of dollars in federal small business contracts to corporate giants such as: Lockheed Martin, Boeing, Rolls Royce, Microsoft, Wal-Mart, L-3 Communications, British Aerospace Engineering (BAE) and Buhrmann NV, a Dutch firm with 17,000 employees in 26 countries.
"It is time for President Obama to make good on his campaign promise to stop the diversion of federal small business contracts to corporate giants. The abuses in these economic stimulus programs for small businesses are at least a contributing factor to our country's current economic catastrophe. President Obama should move swiftly to immediately end these abuses," ASBL President Lloyd Chapman said.
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Tuesday, March 3, 2009
Obama Policies to Allow Goliath to Slay David
President Barack Obama is expected to support legislation or policy that will allow wealthy venture capitalists to dominate federal programs designed to assist small businesses. If he is successful, it will force thousands of small businesses to close their doors and cost countless American jobs. (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 own a controlling interest in a small business and still qualify as participants in federal small business programs. Small business advocates are concerned that such a change would set a dangerous precedent for venture capital participation in all federal small business programs, and lead to the diversion of billions more in federal small business contracts to wealthy venture capitalists.
The American Small Business League (ASBL) is concerned that President Obama may attempt to sell federal small business programs to the venture capital industry by pushing Congress to add language to the omnibus spending bill, making changes to existing Small Business Administration policy or by issuing an executive order.
According to MAPLight.org, the venture capital industry contributed more than $1.2 million to President Obama's campaign. Additionally, the venture capital lobby has focused its campaign to buy political influence on key democratic leaders like Speaker of the House Nancy Pelosi (D - CA) and Senator John Kerry (D - MA). (http://www.maplight.org/map/us/interest/F2500)
Small business advocates point to the appointments of venture capitalist and Tootsie Roll heiress Karen Gordon Mills to run the Small Business Administration (SBA), and Julius Genachowski of Rock Creek Ventures to head the Federal Communications Commission (FCC), as further indications that President Obama may support the interests of the venture capital industry over small businesses.
“Small businesses are the engine that drives this nation’s economy in the car that takes American’s to work. That ‘car’ is responsible for nearly all-new jobs. President Obama needs to consider America’s 27 million small businesses before he facilitates the wholesale diversion of billions of dollars in small business grants and contracts to some of our nation’s wealthiest investors,” ASBL President Lloyd Chapman said. “Legislation or policy that will allow venture capitalist owned-firms to participate in small business programs would damage our nation’s small businesses, cost America’s middle class billions and push our country further towards a depression. It is just not reasonable.”
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 own a controlling interest in a small business and still qualify as participants in federal small business programs. Small business advocates are concerned that such a change would set a dangerous precedent for venture capital participation in all federal small business programs, and lead to the diversion of billions more in federal small business contracts to wealthy venture capitalists.
The American Small Business League (ASBL) is concerned that President Obama may attempt to sell federal small business programs to the venture capital industry by pushing Congress to add language to the omnibus spending bill, making changes to existing Small Business Administration policy or by issuing an executive order.
According to MAPLight.org, the venture capital industry contributed more than $1.2 million to President Obama's campaign. Additionally, the venture capital lobby has focused its campaign to buy political influence on key democratic leaders like Speaker of the House Nancy Pelosi (D - CA) and Senator John Kerry (D - MA). (http://www.maplight.org/map/us/interest/F2500)
Small business advocates point to the appointments of venture capitalist and Tootsie Roll heiress Karen Gordon Mills to run the Small Business Administration (SBA), and Julius Genachowski of Rock Creek Ventures to head the Federal Communications Commission (FCC), as further indications that President Obama may support the interests of the venture capital industry over small businesses.
“Small businesses are the engine that drives this nation’s economy in the car that takes American’s to work. That ‘car’ is responsible for nearly all-new jobs. President Obama needs to consider America’s 27 million small businesses before he facilitates the wholesale diversion of billions of dollars in small business grants and contracts to some of our nation’s wealthiest investors,” ASBL President Lloyd Chapman said. “Legislation or policy that will allow venture capitalist owned-firms to participate in small business programs would damage our nation’s small businesses, cost America’s middle class billions and push our country further towards a depression. It is just not reasonable.”
Friday, February 27, 2009
Obama Budget Ignores Fraud and Abuse in Small Business Contracting Programs
FOR IMMEDIATE RELEASE
February 27, 2009
Petaluma, Calif. - President Barack Obama's new fiscal 2010 budget proposal does not contain any specific funding for, or mention of the Small Business Administration's (SBA) biggest challenge, the diversion of federal small business contracts to large corporations.
Since 2003, more than 15 federal investigations have found fraud, abuse, loopholes and a lack of oversight in federal small business contracting programs that have allowed Fortune 500 firms to take billions of dollars in federal contracts earmarked for small businesses. (http://www.asbl.com/documentlibrary.html) ABC, CBS and CNN have aired stories on the investigations. (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)
Report 5-15 from the SBA Office of Inspector General (OIG) 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.sba.gov/IG/05-15.pdf)
In Report 5-16, the SBA OIG found large businesses had committed felony federal contracting fraud by making "false certifications" and "improper certifications." (http://www.sba.gov/IG/05-16.pdf)
A report from the SBA Office of Advocacy found a number of large businesses had illegally received federal small business contracts through, "vendor deception." (http://www.asbl.com/documents/eagkeeye_report 2002.pdf)
In February of 2008, President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." While President Obama's budget mentions a number of specific small business programs; the proposal contains no mention of this issue, which small business advocates maintain is responsible for pulling up to $100 billion in federal small business contracts out of the middle class economy every year. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In the last year, President Obama has consistently refused to offer a solution to the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large firms. President Obama's fiscal 2010 budget proposal represents his 6th opportunity to mention solutions to this devastating problem.
"I would like a member of the White House Press Corps to ask President Obama one question for America's 27 million small businesses," ASBL President Lloyd Chapman said. "Why are you allowing Fortune 500 firms to take federal contracts that have been legally set-aside for small businesses?"
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February 27, 2009
Petaluma, Calif. - President Barack Obama's new fiscal 2010 budget proposal does not contain any specific funding for, or mention of the Small Business Administration's (SBA) biggest challenge, the diversion of federal small business contracts to large corporations.
Since 2003, more than 15 federal investigations have found fraud, abuse, loopholes and a lack of oversight in federal small business contracting programs that have allowed Fortune 500 firms to take billions of dollars in federal contracts earmarked for small businesses. (http://www.asbl.com/documentlibrary.html) ABC, CBS and CNN have aired stories on the investigations. (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)
Report 5-15 from the SBA Office of Inspector General (OIG) 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.sba.gov/IG/05-15.pdf)
In Report 5-16, the SBA OIG found large businesses had committed felony federal contracting fraud by making "false certifications" and "improper certifications." (http://www.sba.gov/IG/05-16.pdf)
A report from the SBA Office of Advocacy found a number of large businesses had illegally received federal small business contracts through, "vendor deception." (http://www.asbl.com/documents/eagkeeye_report 2002.pdf)
In February of 2008, President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." While President Obama's budget mentions a number of specific small business programs; the proposal contains no mention of this issue, which small business advocates maintain is responsible for pulling up to $100 billion in federal small business contracts out of the middle class economy every year. (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In the last year, President Obama has consistently refused to offer a solution to the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations, their subsidiaries and other clearly large firms. President Obama's fiscal 2010 budget proposal represents his 6th opportunity to mention solutions to this devastating problem.
"I would like a member of the White House Press Corps to ask President Obama one question for America's 27 million small businesses," ASBL President Lloyd Chapman said. "Why are you allowing Fortune 500 firms to take federal contracts that have been legally set-aside for small businesses?"
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