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Friday, February 6, 2009

Stimulus Bill Ignores Census Bureau Statistics

FOR IMMEDIATE RELEASE
February 6, 2009

Petaluma, Calif. – According to a report from the Small Business Administration (SBA) Office of Advocacy, 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 new jobs. The SBA compiled the report from the latest United States Census Bureau data. (http://www.inc.com/news/articles/200708/data.html)

Detailed analyses of the report were released by Inc.com and CNNMoney.com. (http://money.cnn.com/2008/07/30/smallbusiness/job_creation.fsb/index.htm)

Although the nation's top economists agree that creating jobs is essential to a successful stimulus plan, neither the House, nor Senate versions of the stimulus bill contain any provisions specifically directed to the small businesses that create most new jobs.

Economic experts like Dr. Laura Tyson and Carly Fiorina have both acknowledged that directing federal infrastructure funds to small businesses would be the most effective way to stimulate our nation's failing economy. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.

During the Bush Administration, federal programs developed to direct federal spending to small businesses were partially dismantled and plagued by widespread fraud and abuse. Since 2003, more than 15 federal investigations have found billions of dollars in federal contracts earmarked for small businesses were actually diverted to Fortune 500 firms, their subsidiaries and other clearly large businesses.

The American Small Business League (ASBL) has launched a national campaign to encourage President Obama and Congress to include a provision in the economic stimulus bill that would bolster federal contracting programs for small business, and eliminate existing abuses in federal small business programs that have diverted billions of dollars in federal small business contracts to Fortune 500 firms.

As early as February 2008, President Obama agreed with the ASBL by stating, "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." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

The ASBL estimates that if Congress added a provision to the stimulus bill that would stop the flow of federal small business contracts to large businesses, as much as $100 billion a year in existing federal infrastructure spending would be diverted back to America's small businesses.

On December 6, President Obama's transition team estimated that every billion dollars spent on federal infrastructure projects would create 40,000 jobs. Based on President Obama's estimation, the ASBL projects that a simple pro-small business provision in the stimulus bill to stop the flow of small business contracts to large corporations would create up to 4 million new jobs. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html)

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Thursday, February 5, 2009

National Venture Capital Association President Admits They Are Going After Small Business Programs

FOR IMMEDIATE RELEASE
February 5, 2009

Petaluma, Calif. - National Venture Capital Association (NVCA) President Mark Heesen issued a press release Tuesday that finally acknowledged the NVCA and its wealthy members have set their sights on federal contracts earmarked for small businesses.

In the press release, Heesen acknowledged the NVCA had asked Congress to allow firms controlled by some of the nation's wealthiest investors to land federal small business grants under the Small Business Innovative Research (SBIR) program.

In addition to the SBIR program, the NVCA has blanketed Congress with millions of dollars in political contributions aimed at changing the existing federal definition of a small business, which is currently defined as "independently owned." The NVCA is pushing to change the government's definition of a small business for all federal small business contracting programs to include firms that could be owned by well-heeled venture capitalists and some of the largest venture capital firms in America.

Small business advocates are concerned the legislation the NVCA is advocating for would create a colossal loophole in federal contracting law that would divert billions of dollars in federal small business contracts to wealthy investors and destroy millions of legitimate small businesses and middle class jobs.

In recent years, the NVCA's efforts to take over federal small business contracting programs have been opposed by the White House, the Small Business Administration (SBA), the United States Chamber of Commerce, the National Association of Government Contractors, the National Small Businesses Association, the American Small Business League (ASBL) and hundreds of other small business groups and individual chambers of commerce across the country.

The ASBL is concerned President Obama's appointment of venture capitalist Karen Mills to head the SBA could spell disaster for millions of American small businesses.

ASBL President Lloyd Chapman has consistently opposed the NVCA's campaign to take over federal small business contracting programs.

"The NVCA has tried to paint its legislation as something that will benefit small businesses. Nothing could be further from the truth. This is about greed, money and profits for the NVCA and it's members at the expense of legitimate small businesses," Chapman said. "Their multi-million dollar lobbying campaign is nothing more than a blatant attempt to buy legislation that will allow their members to hijack federal small business contracts. If the NVCA succeeds, millions of hard working small business could be forced to close their doors and millions of jobs will be lost. Any member of Congress that votes for this anti-small business legislation should be run out of office."


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Wednesday, February 4, 2009

Senate Bill Should Address Abuses In Existing Federal Stimulus Programs

FOR IMMEDIATE RELEASE
February 4, 2009

Petaluma, Calif. – The Senate is in the process of debating an economic stimulus plan that will cost taxpayers up to $900 billion with no guarantee of success. Before the Senate tries to reinvent the wheel, it should consider including one sentence in its stimulus bill that will address widely publicized abuses in existing government economic stimulus plans.

In 1953, Congress passed the Small Business Act as an economic stimulus plan. Current federal law, which is based on the original Small Business Act, directs that a minimum of 23 percent of the total value of all federal contracts and subcontracts shall be awarded to small businesses.

Economic experts agree that directing federal infrastructure funds to America's 27 million small businesses, which create nearly 80 percent of all new jobs and employ over 50 percent of all private sector workers, is an efficient and cost effective way to stimulate the United States economy.

The primary purpose of the Small Business Administration (SBA) is to administer and oversee this economic stimulus plan. In addition to thousands of SBA employees, an extensive national network of government and private sector staff already exist to ensure that the economic stimulus the Small Business Act was designed to deliver is properly administered.

Every federal prime contract is required to contain a small business subcontracting plan. Every prime contractor is required to have a small business liaison and submit quarterly reports on their compliance with their small business subcontracting goals.

Unfortunately, since 2003 more than 15 federal investigations have found billions of dollars in federal small business contracts wound up in the hands of Fortune 500 corporations and some of the largest corporations in the U.S. and Europe.

The American Small Business League (ASBL) estimates that as much as $100 billion a year in federal small business contracts are diverted to large businesses.

Hundreds of stories in the mainstream media have chronicled the diversion of federal small business contracts to Fortune 500 firms. ABC, CBS and CNN have all covered the story.

Existing federal law defines a small business as a firm that is "independently owned." Firms that are publicly traded are certainly not "independently owned."

If the Senate sincerely wants to stimulate America's failing economy, one line could be inserted into the economic stimulus plan which would provide a free and easy way to stimulate the economy by redirecting up to $100 billion a year in current federal infrastructure spending to the small businesses that create nearly 80 percent of all new jobs in America.

The one line that should be included in the economic stimulus plan is, "Federal contracting officials and prime contractors can no longer report awards to publicly traded firms as small business awards."

Most American's would probably agree that to ignore a free and easy solution to our current economic dilemma, which would utilize existing federal laws and programs to create millions of jobs, would be the pinnacle of governmental stupidity.

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Tuesday, February 3, 2009

ASBL's Communications Director Chris Gunn on The Small Business Advocate with Jim Blasingame

Obama May Support Venture Capitalists' Move to Dominate Government Small Business Programs

Petaluma, Calif. – The National Venture Capital Association (NVCA) has blanketed Congress with millions of dollars in campaign contributions, and venture capitalists have set their sights on taking over federal small business contracting programs.

According to MAPLight.org, the venture capital industry contributed more than $1.2 million to President Obama's campaign. 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).

For several years, the NVCA and its members have been aggressively lobbying Congress to change the longstanding federal definition of a small business as "independently owned" to include firms that are controlled by wealthy venture capitalists and even some of the largest venture capital firms in America. The change would allow well-heeled investors to hijack billions of dollars in federal contracts earmarked for legitimate small businesses.

Several members of the Senate Committee on Small Business and Entrepreneurship received campaign contributions from the NVCA, including Senator Kerry who has received more than $680,000 in contributions from the venture capital industry. Under Kerry's leadership the Senate Committee on Small Business and Entrepreneurship passed S. 3362, which would allow billionaire investors to participate in federal small business contracting programs.

The majority of the members of the House Small Business Committee, including Chairwoman Nydia Velazquez, received contributions from the NVCA and its members. According to Opensecrets.org, 17 members of the House Committee on Small Business received campaign contributions from the NVCA during the 2008 election cycle.

Speaker Pelosi aggressively pushed H.R. 3567 and H.R. 5819 though the House of Representatives. Both bills would divert billions of dollars in federal small business contracts to firms controlled by wealthy investors who were major contributors to her campaign and the Democratic Party.

At a time when American small businesses need the assistance of federal small business contracting programs more than ever, thousands of legitimate small businesses could be forced to close their doors and millions of middle class jobs could be lost if the NVCA is successful.

President Obama's appointment of multi-millionaire venture capitalist and heir to the multi-billion dollar Tootsie Roll fortune, Karen Mills to head the Small Business Administration (SBA), is seen as an indication he will support federal legislation and policies that could kill millions of middle class jobs by diverting billions of dollars in federal small business contracts to some of the nation's wealthiest venture capitalists.

The American Small Business League is concerned the Obama stimulus bill may ultimately include the loophole venture capitalists have been lobbying for.

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Monday, February 2, 2009

Corporate Lobby Blocks Better Stimulus Plan

FOR IMMEDIATE RELEASE
February 2, 2009

Petaluma, Calif. – President Barack Obama's latest economic stimulus plan may have been heavily influenced by powerful corporate lobbying.

Some of President Obama's earlier campaign promises that would have directed hundreds of billions of dollars back into the middle class economy may have been killed by an intensive and well-financed lobbying campaign backed by some of our nation’s largest corporations.

President Obama campaigned for two years on a promise to institute a windfall profits tax on the oil and gas industry. The proceeds from the tax would have stimulated the economy by providing a $1000 energy rebate to American families. No additional federal funds would have been expended.

Just two days after the election, on November 6, the windfall profits tax on the oil and gas industry was the number one issue under the Economy section of President Obama's change.gov website. (http://www.asbl.com/documents/Economy_Change.pdf) On November 8th, the windfall profits tax abruptly disappeared with no justification or explanation from President Obama.( http://change.gov/agenda/economy_agenda/)

Proponents of the windfall profits tax believe the sudden and unexplained removal of the plan was prompted by an aggressive and expensive lobbying campaign by the oil and gas industry.

In February of 2008, President Obama responded to pleas from small business groups to address Bush Administration policies that had allowed the diversion of up to $100 billion a year in federal small business contracts to Fortune 500 firms and other large businesses.

Since 2003, more than 15 federal investigations have confirmed Bush officials diverted billions of dollars in federal contracts intended for small business to many of the nation's largest corporations. (http://www.asbl.com/documentlibrary.html)

Obama responded with the statement, "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." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

Days later, the Obama camp modified their website to make it appear as if President Obama had never made the statement. (http://my.barackobama.com/page/content/sbhome/) Additionally, just days before the election President Obama dropped a plan drafted by his small business advisory panel that would have created millions of jobs by redirecting up to $100 billion a year in federal small business contracts back to middle class. (http://www.asbl.com/documents/BOsmallbusinesspolicy.pdf)

To date, President Obama has offered no explanation for dropping his campaign promise to end the diversion of federal small business contracts to corporate giants, or any policies to address the problem.

Small business advocates believe a well funded lobbying campaign by the defense and aerospace giants that are currently receiving the majority of federal small business contracts could explain President Obama's handling of the issue.

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