FOR IMMEDIATE RELEASE
June 11, 2009
Petaluma, Calif. - The National Venture Capital Association (NVCA) has been showering Congress with millions of dollars in campaign contributions in hopes of changing the 55-year-old federal definition of a small business. The latest bill focuses on the Small Business Innovative Research (SBIR) program. Wealthy investors are hoping to ultimately gain access to all federal small business programs.(http://maplight.org/map/us/interest/F2500/view/all, http://www.opensecrets.org/industries/indus.php?ind=F2500, http://www.opensecrets.org/pacs/lookup2.php?strID=C00150367&cycle=2008)
Federal law currently defines a small business as a firm that is "independently owned." The NVCA is hoping to change that definition to include firms that are not only not "independently owned," but are owned and controlled by wealthy investors. If the NVCA is successful, millions of legitimate small businesses could be forced to close their doors.
For over two years, the NVCA has hired some of the most powerful lobbying firms in Washington in an effort to quietly pass legislation that will allow its members to dominate federal contracting programs for small businesses, and firms owned by women and minorities.
NVCA lobbying efforts have focused on President Barack Obama, Speaker of the House Nancy Pelosi (D - CA) and both the House and Senate Small Business Committees. In an April 2008 article in AllBusiness.com, House Small Business Committee Chair Nydia Velázquez (D - NY) was described as "quarterbacking" the legislation for the venture capital industry. (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
Congresswoman Velázquez has received significant contributions from the venture capital industry. Velázquez was able to pass two pro-venture capital bills through her committee in 2008, which were opposed by every major small business advocacy group in the country. (http://www.asbl.com/showmedia.php?id=624, http://www.whitehouse.gov/omb/legislative/sap/110-1/hr3567sap-r.pdf)
The latest bill to allow venture capitalists to participate in small business programs was introduced by Congressman Sam Graves (R - MO) on June 9. The bill, H.R. 2767, the "Investing in Tomorrow's Technology Act," amends Sec. 9 (e) of the Small Business Act and will allow a firm to be considered, "independently owned," if it is owned in majority part by one or more individuals or venture capital firms, and as long as no single venture capital firm owns 50 percent or more of the business. As a result, H.R. 2767 will allow a business to be owned up to nearly 100 percent by a venture capital syndicate and maintain small business status. (http://www.govtrack.us/congress/billtext.xpd?bill=h111-2767)
The sudden appearance of H.R. 2767 is seen as a response to another bill, H.R 2568, the "Fairness and Transparency in Contracting Act," which will strengthen the definition of "independently owned" to halt the diversion of federal small business contracts to Fortune 500 firms and firms controlled by venture capitalists.
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Thursday, June 11, 2009
Wednesday, June 10, 2009
Battle in Congress Over Billions in Small Business Contracts Heats-Up
FOR IMMEDIATE RELEASE
June 10, 2009
Petaluma, Calif. - The National Venture Capital Association (NVCA) and its wealthiest members have stepped-up their campaign to try and participate in federal small business contracting programs. Yesterday, a bill was introduced in the House of Representatives by Congressman Sam Graves (R - MO) that could allow firms that are owned by some of the nation's wealthiest investors to receive billions of dollars in federal small business contracts.
The bill, H.R. 2767, the "Investing in Tomorrow's Technology Act," would affect small businesses involved in the government's Small Business Innovation Research (SBIR) program. The heart of the bill is a proposed change in the longstanding government definition of a small business, which currently requires that a small business be "independently owned." Congressman Graves' bill would modify the term "independently owned" to include firms that are actually not "independently owned," but owned and controlled by venture capitalists. The bill circumvents the affiliation rules currently governing venture capital ownership of a small business.
Opponents of the bill say it will essentially repeal the Small Business Act by changing the federal definition of a small business to include firms that are actually not small businesses. The American Small Business League (ASBL) is opposing the bill. The ASBL estimates that changing the federal definition of a small business to include wealthy venture capitalists could divert billions of dollars in federal contracts away from middle class firms and could devastate legitimate small businesses around the country.
Although H.R. 2767 is focused on the SBIR program, the NVCA has blanketed both the House and Senate small business committees with contributions in an effort to have legislation passed that would allow them to participate in all federal small business contracting programs. In 2007, with the help of House Small Business Committee Chair Nydia Velázquez (D - NY), H.R. 3567 passed through the House of Representatives. The bill would have allowed firms owned and controlled by some of the country's wealthiest investors to participate in all federal small business contracting programs.
Small business groups around the country became concerned about the future of federal small business contracting programs when President Obama appointed multi-millionaire venture capitalist Karen Mills, to head the Small Business Administration (SBA) and venture capitalist Winslow Sargeant to head the SBA Office of Advocacy. Both Mills and Sargeant were major contributors to President Obama's campaign. They have also been outspoken advocates of changes in federal policy and legislation that would allow venture capitalists and even some of the nation's largest venture capital firms to receive federal contracts designated for legitimate small businesses.
The ASBL is mounting a national campaign to oppose H.R. 2767 and any other legislation to amend the definition of a small business as "independently owned," to include wealthy venture capitalists.
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June 10, 2009
Petaluma, Calif. - The National Venture Capital Association (NVCA) and its wealthiest members have stepped-up their campaign to try and participate in federal small business contracting programs. Yesterday, a bill was introduced in the House of Representatives by Congressman Sam Graves (R - MO) that could allow firms that are owned by some of the nation's wealthiest investors to receive billions of dollars in federal small business contracts.
The bill, H.R. 2767, the "Investing in Tomorrow's Technology Act," would affect small businesses involved in the government's Small Business Innovation Research (SBIR) program. The heart of the bill is a proposed change in the longstanding government definition of a small business, which currently requires that a small business be "independently owned." Congressman Graves' bill would modify the term "independently owned" to include firms that are actually not "independently owned," but owned and controlled by venture capitalists. The bill circumvents the affiliation rules currently governing venture capital ownership of a small business.
Opponents of the bill say it will essentially repeal the Small Business Act by changing the federal definition of a small business to include firms that are actually not small businesses. The American Small Business League (ASBL) is opposing the bill. The ASBL estimates that changing the federal definition of a small business to include wealthy venture capitalists could divert billions of dollars in federal contracts away from middle class firms and could devastate legitimate small businesses around the country.
Although H.R. 2767 is focused on the SBIR program, the NVCA has blanketed both the House and Senate small business committees with contributions in an effort to have legislation passed that would allow them to participate in all federal small business contracting programs. In 2007, with the help of House Small Business Committee Chair Nydia Velázquez (D - NY), H.R. 3567 passed through the House of Representatives. The bill would have allowed firms owned and controlled by some of the country's wealthiest investors to participate in all federal small business contracting programs.
Small business groups around the country became concerned about the future of federal small business contracting programs when President Obama appointed multi-millionaire venture capitalist Karen Mills, to head the Small Business Administration (SBA) and venture capitalist Winslow Sargeant to head the SBA Office of Advocacy. Both Mills and Sargeant were major contributors to President Obama's campaign. They have also been outspoken advocates of changes in federal policy and legislation that would allow venture capitalists and even some of the nation's largest venture capital firms to receive federal contracts designated for legitimate small businesses.
The ASBL is mounting a national campaign to oppose H.R. 2767 and any other legislation to amend the definition of a small business as "independently owned," to include wealthy venture capitalists.
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Tuesday, June 9, 2009
Obama "Roadmap for Recovery" Ignores U.S. Census Bureau Data On New Jobs
FOR IMMEDIATE RELEASE
June 9, 2009
Petaluma, Calif. - President Barack Obama is rolling out his latest program to create jobs and stimulate the economy, the "Roadmap to Recovery." Like all of President Obama's previous economic stimulus plans, this plan continues to ignore the latest U.S Census Bureau data, which indicates that small businesses create over 97 percent of all new jobs in America. (http://www.inc.com/news/articles/200708/data.html)
According to the most recent U.S. Census Bureau data, 98 percent of all American firms have less than 100 employees and those firms are responsible for more than 97 percent of all net new jobs. These firms employ over 50.2 percent of the private sector workforce, and are responsible for over 95 percent of all U.S exports and over 90 percent of all technical innovations and patents. Conversely, Census Bureau data indicates that large businesses have not created one net new job in America since 1977.
As opposed to immediate economic stimulus programs, the "Roadmap to Recovery" focuses on long-term infrastructure improvements to 107 national parks, 98 airports, 90 veterans medical centers and more than 1,500 highways. No provision in the new plan requires any portion of the recovery funds to be specifically allocated to small businesses. Absent any pro-small business provisions, the vast majority of the funds will likely go to large businesses.
Like all of President Obama's previous economic stimulus plans, the "Roadmap to Recovery" continues to allow Fortune 500 firms to receive federal contracts specifically allocated to small businesses.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms receive billions of dollars in government small businesses contracts every month.
Investigative reports by ABC, CBS and CNN have found the recipients of government small business contracts to include Wal-Mart, Dell Computer, Verizon, Xerox, Sherwin-Williams, John Deere, Raytheon, General Dynamics, Home Depot, British Aerospace (BAE), Rolls-Royce and Dutch corporate giant Buhrmann NV. (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)
An extensive investigative report by the Washington Post found Fortune 500 firms alone had received approximately 38.5 percent of all federal small business contracts. (http://www.washingtonpost.com/wp-dyn/content/article/2008/10/21/AR2008102102989.html)
In a recent interview on CNN's Wolf Blitzer Show, Dr. Laura Tyson acknowledged the most effective method to stimulate the economy and create jobs would be to direct existing federal infrastructure spending to small businesses. Dr. Tyson is the former Chair of President Clinton's Council of Economic Advisors and is currently an economic advisor to President Obama. (http://www.youtube.com/watch?v=36Z0Kz0Xa8E)
June 9, 2009
Petaluma, Calif. - President Barack Obama is rolling out his latest program to create jobs and stimulate the economy, the "Roadmap to Recovery." Like all of President Obama's previous economic stimulus plans, this plan continues to ignore the latest U.S Census Bureau data, which indicates that small businesses create over 97 percent of all new jobs in America. (http://www.inc.com/news/articles/200708/data.html)
According to the most recent U.S. Census Bureau data, 98 percent of all American firms have less than 100 employees and those firms are responsible for more than 97 percent of all net new jobs. These firms employ over 50.2 percent of the private sector workforce, and are responsible for over 95 percent of all U.S exports and over 90 percent of all technical innovations and patents. Conversely, Census Bureau data indicates that large businesses have not created one net new job in America since 1977.
As opposed to immediate economic stimulus programs, the "Roadmap to Recovery" focuses on long-term infrastructure improvements to 107 national parks, 98 airports, 90 veterans medical centers and more than 1,500 highways. No provision in the new plan requires any portion of the recovery funds to be specifically allocated to small businesses. Absent any pro-small business provisions, the vast majority of the funds will likely go to large businesses.
Like all of President Obama's previous economic stimulus plans, the "Roadmap to Recovery" continues to allow Fortune 500 firms to receive federal contracts specifically allocated to small businesses.
Since 2003, over a dozen federal investigations have found that Fortune 500 firms receive billions of dollars in government small businesses contracts every month.
Investigative reports by ABC, CBS and CNN have found the recipients of government small business contracts to include Wal-Mart, Dell Computer, Verizon, Xerox, Sherwin-Williams, John Deere, Raytheon, General Dynamics, Home Depot, British Aerospace (BAE), Rolls-Royce and Dutch corporate giant Buhrmann NV. (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)
An extensive investigative report by the Washington Post found Fortune 500 firms alone had received approximately 38.5 percent of all federal small business contracts. (http://www.washingtonpost.com/wp-dyn/content/article/2008/10/21/AR2008102102989.html)
In a recent interview on CNN's Wolf Blitzer Show, Dr. Laura Tyson acknowledged the most effective method to stimulate the economy and create jobs would be to direct existing federal infrastructure spending to small businesses. Dr. Tyson is the former Chair of President Clinton's Council of Economic Advisors and is currently an economic advisor to President Obama. (http://www.youtube.com/watch?v=36Z0Kz0Xa8E)
Monday, June 8, 2009
Wealthy Venture Capitalists to Join Fortune 500 Firms in Obama Administration Small Business Programs
Petaluma, Calif. – The Obama Administration is moving closer to new legislation and policy that will allow many of President Barack Obama’s wealthiest contributors in the venture capital industry to take federal contracts meant for small businesses.
President Obama has already appointed two of his chief campaign fundraisers from the venture capital industry to top positions at the Small Business Administration (SBA). New York venture capitalist, and heiress to the multi-billion dollar Tootsie Roll Company, Karen Gordon Mills was appointed to head the agency. During her confirmation hearing, Mills voiced her support for new federal policy that would divert billions of dollars in federal small business contracts to wealthy venture capitalists.
President Obama has now appointed another major campaign contributor from the venture capital industry to the other top spot at the SBA, the Chief Counsel for the SBA Office of Advocacy. Winslow Sargeant, Ph.D., will fill that position. Prior to his appointment, Sargeant was a managing director of the Wisconsin-based venture firm, Venture Investors LLC. He is a proponent of changes in federal policy that will divert federal small business contracts to well-heeled venture capitalists and even many of the nation’s top venture capital firms.
(http://blogs.wsj.com/venturecapital/2009/05/22/obamas-sba-nomination-nods-in-favor-of-vcindustry/,http://wistechnology.com/articles/3310/)
The Obama Administration is currently allowing Fortune 500 firms and thousands of other clearly large businesses to take federal contracts earmarked for legitimate small businesses. Investigative stories by ABC, CBS and CNN have reported firms receiving federal small business contracts include: British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV. (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)
Congresswoman Nydia M. Velázquez (D – NY) is leading the Obama Administration’s efforts in the House Committee on Small Business to pass legislation to divert federal small business contracts to some of the nation’s most successful investors. Velázquez has already passed two bills through her committee, and is expected to pass a third in the near future that would divert billions of dollars a year in federal small business contracts to firms owned and controlled by venture capitalists.
Velázquez has been one of several key members of Congress who has received significant campaign contributions from the National Venture Capital Association (NVCA), its members and the venture capital industry as a whole (http://www.allbusiness.com/company-activitiesmanagement/business-climate-conditions/9077284-1.html)
Velázquez has also been a vocal opponent to the new Fairness and Transparency in Contracting Act that was written to stop the diversion of federal small business contracts to Fortune 500 firms and other large businesses. (http://www.asbl.com/documents/hr2568.pdf)
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President Obama has already appointed two of his chief campaign fundraisers from the venture capital industry to top positions at the Small Business Administration (SBA). New York venture capitalist, and heiress to the multi-billion dollar Tootsie Roll Company, Karen Gordon Mills was appointed to head the agency. During her confirmation hearing, Mills voiced her support for new federal policy that would divert billions of dollars in federal small business contracts to wealthy venture capitalists.
President Obama has now appointed another major campaign contributor from the venture capital industry to the other top spot at the SBA, the Chief Counsel for the SBA Office of Advocacy. Winslow Sargeant, Ph.D., will fill that position. Prior to his appointment, Sargeant was a managing director of the Wisconsin-based venture firm, Venture Investors LLC. He is a proponent of changes in federal policy that will divert federal small business contracts to well-heeled venture capitalists and even many of the nation’s top venture capital firms.
(http://blogs.wsj.com/venturecapital/2009/05/22/obamas-sba-nomination-nods-in-favor-of-vcindustry/,http://wistechnology.com/articles/3310/)
The Obama Administration is currently allowing Fortune 500 firms and thousands of other clearly large businesses to take federal contracts earmarked for legitimate small businesses. Investigative stories by ABC, CBS and CNN have reported firms receiving federal small business contracts include: British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV. (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)
Congresswoman Nydia M. Velázquez (D – NY) is leading the Obama Administration’s efforts in the House Committee on Small Business to pass legislation to divert federal small business contracts to some of the nation’s most successful investors. Velázquez has already passed two bills through her committee, and is expected to pass a third in the near future that would divert billions of dollars a year in federal small business contracts to firms owned and controlled by venture capitalists.
Velázquez has been one of several key members of Congress who has received significant campaign contributions from the National Venture Capital Association (NVCA), its members and the venture capital industry as a whole (http://www.allbusiness.com/company-activitiesmanagement/business-climate-conditions/9077284-1.html)
Velázquez has also been a vocal opponent to the new Fairness and Transparency in Contracting Act that was written to stop the diversion of federal small business contracts to Fortune 500 firms and other large businesses. (http://www.asbl.com/documents/hr2568.pdf)
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