By Lloyd Chapman
President, American Small Business League
CIT has acknowledged that negotiations with the Obama Administration have broken off. It seems clear the Obama Administration has decided CIT is not too big to fail.
What about the roughly one million small and medium businesses that depend on CIT for financing, should they also be allowed to fail? CIT has been the nation's number one SBA lender for nine years and the top lender to women, minorities and veteran entrepreneurs for six consecutive years. If the officials of the Obama Administration have decided not to save the nation's top small business lender, doesn't President Obama have an obligation to CIT's customers? Shouldn't he take immediate steps to ensure those firms are not forced into bankruptcy as a result of his administration's decision not to rescue CIT?
CIT's customers have worked many years to build their businesses and create jobs for millions of people. They have done nothing wrong and they do not deserve to have their businesses damaged or destroyed as a result of an arbitrary decision on the part of Washington bureaucrats.
If President Obama does not want to save CIT he should immediately offer a viable financial alternative to CIT's nearly one million customers. He should take appropriate steps to ensure that CIT's customers have workable government backed financial alternatives. To simply leave those firms to fend for themselves and say that other lenders will fill the void is unacceptable.
If the Obama Administration insists on letting CIT fail and they refuse to provide CIT's customers with reasonable and workable financial alternatives, an avalanche of bankruptcies will likely follow. There will almost certainly be a reverberation through the middle class economy that will make the recession worse and extend its duration.
President Obama should also consider the nearly one million CIT customers along with all of the employees of those firms and all the families of those employees. Conservatively the average CIT customer has approximately 15 employees. According to the U.S. Census Bureau the average American family is about 3.19 people. That comes out to 47.8 million people that could be adversely affected if President Obama lets CIT fail and refuses to offer some help to their customers.
So far President Obama's economic stimulus plan is not working for the vast majority of Americans. The 27 million small businesses that employ over 55 percent of the private sector work force, create over 97 percent of all net new jobs and are responsible for over 50 percent of the Gross Domestic Product (GDP) have received less than 1 percent of the overall 2.5 trillion in economic stimulus funds. Unemployment continues to rise as Goldman Sachs, one of President Obama's top campaign contributors, is reporting record profits. Dissatisfaction with President Obama's economic policies is growing daily across the country and on both sides of the isle in Congress.
President Obama should take a closer look at his administration's policies involving CIT and the over 40 million voters that could be impacted by those decisions.
2012 will be here before you know it. Maybe John Kerry and Al Gore could offer some advice on the difference a few million voters can make on Election Day.
Friday, July 17, 2009
Wednesday, July 15, 2009
New Bill Could be Powerful Economic Stimulus for Middle Class Firms
More than two years ago, notable small business advocate Lloyd Chapman sat in a hotel in Durango, Colorado and drafted a bill to stop billions of dollars in fraud and abuse in federal small business contracting programs. On Thursday, May 21, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.
With a mind for change, Chapman drafted H.R. 2568 with Congressman Johnson and Senator Barbara Boxer, while relying heavily on the guidance of the nation's preeminent expert on contracting law, Professor Charles Tiefer. The bill was designed to preclude the federal government from counting publicly traded firms towards the government's 23 percent small business procurement goal. The Small Business Act requires that a small business be independently owned and operated; publicly traded firms do not qualify as independently owned.
Since 2003, more than 15 federal investigations have uncovered the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations and thousands of other clearly large firms. The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal contracts intended for small businesses are awarded to firms like British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV.
The ASBL maintains that H.R. 2568 is a free and easy solution to a problem that is costing America's middle-class $100 billion a year.
With the assistance of the ASBL, Chapman has garnered a wide swath of support for H.R. 2568 from members of the House of Representatives, chambers of commerce and major business organizations across the country. With a wave of support that includes key decision makers in the minority and veteran business communities, support for H.R. 2568 appears to be turning into a major movement for change in the government's contracting community.
Despite its potential major positive impact, H.R. 2568 has run into roadblocks from faux small business advocates, the U.S. Chamber of Commerce, and the U.S. Hispanic Chamber of Commerce. That said, the ASBL maintains that the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce are wolves in sheep's clothing; lobbying for the interests of Fortune 500 corporations who are currently receiving billions of dollars in small business contracts, while at the same time masquerading as small business advocates. (http://www.asbl.com/showmedia.php?id=1432, http://www.asbl.com/showmedia.php?id=1425)
"The small business community needs to open its eyes to the deception of the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce and get behind our movement towards change in federal small business contracting programs, "ASBL President Lloyd Chapman said. "H.R. 2568 is the first and only solution to the diversion of billions of dollars in small business contracts to corporate giants. It is not reasonable to allow this problem to continue while our nation's small businesses go belly-up and our economy continues to flounder."
Small businesses are the backbone of our nation's economy. Small businesses are responsible for more than 50 percent of our gross domestic product and over 90 percent of innovations. According to the U.S. Census Bureau, 90 percent of all U.S. firms have less than 20 employees and those firms are responsible for 97 percent of net new jobs. It is time for our small business leaders to embrace a real solution, H.R. 2568, to the diversion of federal small business contracts to large corporations. our jobs, families, homes, and businesses rely on it.
With a mind for change, Chapman drafted H.R. 2568 with Congressman Johnson and Senator Barbara Boxer, while relying heavily on the guidance of the nation's preeminent expert on contracting law, Professor Charles Tiefer. The bill was designed to preclude the federal government from counting publicly traded firms towards the government's 23 percent small business procurement goal. The Small Business Act requires that a small business be independently owned and operated; publicly traded firms do not qualify as independently owned.
Since 2003, more than 15 federal investigations have uncovered the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations and thousands of other clearly large firms. The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal contracts intended for small businesses are awarded to firms like British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV.
The ASBL maintains that H.R. 2568 is a free and easy solution to a problem that is costing America's middle-class $100 billion a year.
With the assistance of the ASBL, Chapman has garnered a wide swath of support for H.R. 2568 from members of the House of Representatives, chambers of commerce and major business organizations across the country. With a wave of support that includes key decision makers in the minority and veteran business communities, support for H.R. 2568 appears to be turning into a major movement for change in the government's contracting community.
Despite its potential major positive impact, H.R. 2568 has run into roadblocks from faux small business advocates, the U.S. Chamber of Commerce, and the U.S. Hispanic Chamber of Commerce. That said, the ASBL maintains that the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce are wolves in sheep's clothing; lobbying for the interests of Fortune 500 corporations who are currently receiving billions of dollars in small business contracts, while at the same time masquerading as small business advocates. (http://www.asbl.com/showmedia.php?id=1432, http://www.asbl.com/showmedia.php?id=1425)
"The small business community needs to open its eyes to the deception of the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce and get behind our movement towards change in federal small business contracting programs, "ASBL President Lloyd Chapman said. "H.R. 2568 is the first and only solution to the diversion of billions of dollars in small business contracts to corporate giants. It is not reasonable to allow this problem to continue while our nation's small businesses go belly-up and our economy continues to flounder."
Small businesses are the backbone of our nation's economy. Small businesses are responsible for more than 50 percent of our gross domestic product and over 90 percent of innovations. According to the U.S. Census Bureau, 90 percent of all U.S. firms have less than 20 employees and those firms are responsible for 97 percent of net new jobs. It is time for our small business leaders to embrace a real solution, H.R. 2568, to the diversion of federal small business contracts to large corporations. our jobs, families, homes, and businesses rely on it.
Tuesday, July 14, 2009
Obama Should Save CIT
By Lloyd Chapman
CIT Group Inc. has been the number one Small Business Administration (SBA) 7(a) lender for nine consecutive years. They have also been the top lender to women, minority and veteran owned small businesses for six consecutive years. CIT has been a lender to roughly one million small and mid-size businesses. Without help from the federal government CIT could face a very serious challenge to their future that may include bankruptcy.
President Obama should not let that happen for several good reasons.
America's small businesses are responsible for approximately 50 percent of the gross domestic product (GDP). According to the latest U.S. Census Bureau data, small businesses with less than 100 employees are responsible for over 97 percent of all net new jobs in America. These firms employ over 56 percent of the private sector workforce and are responsible for the majority of technical innovations. Small businesses are unquestionably the foundation our of national economy.
These are the firms CIT has been serving since 1908. CIT makes successful loans available to thousands of hardworking small business owners that had been turned down repeatedly by other lenders. CIT's unique ability to work with new entrepreneurs and small business owners trying to expand their businesses will be impossible to duplicate.
CIT received $2.3 billion in TARP funds. As far as I know, they didn't use the money to give their top executives millions in bonuses, buy a new corporate jet or spend a million dollars remodeling the president's bathroom like many firms in their industry.
I admit, I am not an economist and the detailed and complex inner workings of the financial industry are not my area of expertise. I am a hardcore small business advocate and a taxpayer. If my tax dollars are going to be used to rescue banks and other financial institutions, CIT is the kind of firm I want to see saved.
It looks like President Obama and the people in his administration get to decide who succeeds and who fails in the financial industry. In making those life and death decisions I believe President Obama would be wise to consider the crucial role small businesses will play in our nation's economic recovery. Over 50 percent of the GDP and over 95 percent of all net new jobs are very compelling statistics in favor of supporting America's 27 million small businesses.
President Obama recently rolled out his ARC loan program that will provide interest free $35,000 loans to small businesses. The program is capped at $255 million. CIT made $770 million in loans under the SBA's backed loan program in 2008.
If you consider the total volume of federal funds that have been allocated to stimulate the nation's failing economy, the figure is over $2.5 trillion. To date, the nation's 27 million small businesses have received less than 1 percent of those funds. To help put that in perspective, more tax dollars have gone to help J.P. Morgan than all American small businesses combined. The Wall Street executives that helped create the worst national economic disaster since the Great Depression have received more money than 27 million small businesses, over $18 billion in bonuses.
If our economy is going to recover any time soon, President Obama needs to come to the realization that small businesses will lead the way out of this recession, not Wall Street and not Fortune 500 firms. Politicians in Washington pushed the Wall Street bailout bill and the American Recovery and Re-Investment Act by saying small businesses need access to capital. The truth is, and has been widely reported, that access to capital for most small businesses has actually decreased.
An effective economic recovery will require lenders like CIT to get money into the hands of qualified small businesses.
If our hard earned tax dollars are going to be used to save financial institutions, we should use those funds to save firms like CIT that have a 100-year track record of helping those small businesses where most Americans work, the businesses that are responsible for over 50 percent of the GDP and create over 97 percent of all net new jobs.
President Obama needs to invest our tax dollars wisely and I can't think of a better use for those funds than to invest in a firm like CIT that has been the nation's top lender to small businesses and firms owned by women, minorities and veterans.
CIT Group Inc. has been the number one Small Business Administration (SBA) 7(a) lender for nine consecutive years. They have also been the top lender to women, minority and veteran owned small businesses for six consecutive years. CIT has been a lender to roughly one million small and mid-size businesses. Without help from the federal government CIT could face a very serious challenge to their future that may include bankruptcy.
President Obama should not let that happen for several good reasons.
America's small businesses are responsible for approximately 50 percent of the gross domestic product (GDP). According to the latest U.S. Census Bureau data, small businesses with less than 100 employees are responsible for over 97 percent of all net new jobs in America. These firms employ over 56 percent of the private sector workforce and are responsible for the majority of technical innovations. Small businesses are unquestionably the foundation our of national economy.
These are the firms CIT has been serving since 1908. CIT makes successful loans available to thousands of hardworking small business owners that had been turned down repeatedly by other lenders. CIT's unique ability to work with new entrepreneurs and small business owners trying to expand their businesses will be impossible to duplicate.
CIT received $2.3 billion in TARP funds. As far as I know, they didn't use the money to give their top executives millions in bonuses, buy a new corporate jet or spend a million dollars remodeling the president's bathroom like many firms in their industry.
I admit, I am not an economist and the detailed and complex inner workings of the financial industry are not my area of expertise. I am a hardcore small business advocate and a taxpayer. If my tax dollars are going to be used to rescue banks and other financial institutions, CIT is the kind of firm I want to see saved.
It looks like President Obama and the people in his administration get to decide who succeeds and who fails in the financial industry. In making those life and death decisions I believe President Obama would be wise to consider the crucial role small businesses will play in our nation's economic recovery. Over 50 percent of the GDP and over 95 percent of all net new jobs are very compelling statistics in favor of supporting America's 27 million small businesses.
President Obama recently rolled out his ARC loan program that will provide interest free $35,000 loans to small businesses. The program is capped at $255 million. CIT made $770 million in loans under the SBA's backed loan program in 2008.
If you consider the total volume of federal funds that have been allocated to stimulate the nation's failing economy, the figure is over $2.5 trillion. To date, the nation's 27 million small businesses have received less than 1 percent of those funds. To help put that in perspective, more tax dollars have gone to help J.P. Morgan than all American small businesses combined. The Wall Street executives that helped create the worst national economic disaster since the Great Depression have received more money than 27 million small businesses, over $18 billion in bonuses.
If our economy is going to recover any time soon, President Obama needs to come to the realization that small businesses will lead the way out of this recession, not Wall Street and not Fortune 500 firms. Politicians in Washington pushed the Wall Street bailout bill and the American Recovery and Re-Investment Act by saying small businesses need access to capital. The truth is, and has been widely reported, that access to capital for most small businesses has actually decreased.
An effective economic recovery will require lenders like CIT to get money into the hands of qualified small businesses.
If our hard earned tax dollars are going to be used to save financial institutions, we should use those funds to save firms like CIT that have a 100-year track record of helping those small businesses where most Americans work, the businesses that are responsible for over 50 percent of the GDP and create over 97 percent of all net new jobs.
President Obama needs to invest our tax dollars wisely and I can't think of a better use for those funds than to invest in a firm like CIT that has been the nation's top lender to small businesses and firms owned by women, minorities and veterans.
Friday, July 10, 2009
U.S. Hispanic Chamber Challenged on its Small Business Credentials
FOR IMMEDIATE RELEASE
July 10, 2009
Petaluma, Calif. - After being criticized by the American Small business League (ASBL) for refusing to support legislation to stop widespread fraud and abuse in federal small business contracting programs, on July 1, the U.S. Hispanic Chamber of Commerce (USHCC) issued an abrasive and grossly misleading press release attempting to reaffirm its commitment to "comprehensive and substantive federal contracting reform."
The USHCC's commitment to contracting reform was called into question by the ASBL after the chamber refused to offer its support to H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 corporations and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
Since 2003, more than a dozen federal investigations have reported that every year billions of dollars in government small business contracts are awarded to Fortune 500 corporations and thousands of other clearly large firms around the world. The ASBL estimates that the diversion of federal small business contracts to large corporations could exceed $100 billion a year. (http://www.asbl.com/documentlibrary.html)
In its press release the USHCC and its Chairman David C. Lizárraga touted Chairwoman of the House Committee on Small Business Nydia Velázquez as the "principle champion" of reform on small business contracting issues. The USHCC has never supported any policies, or pushed for the removal of corporate giants from federal small business contracting programs, and Chairwoman Velázquez has never proposed legislation or policy that would end the abuses. Since 2002, ASBL President Lloyd Chapman and the ASBL have been the primary advocates of federal small business contracting reform. (http://www.ushcc.com/index.cfm?fuseaction=Feature.showFeature&CategoryID=2&FeatureID=109)
The ASBL challenges the USHCC to put-up or shut-up. Chapman challenges the USHCC to produce any press releases, media appearances, legislation or lawsuits filed by the chamber that would indicate the chamber has ever supported or worked towards the removal of large firms from federal small business contracting programs.
"The U.S. Hispanic Chamber of Commerce has shown no commitment to removing corporate giants from small business contracting programs. To see that, all you have to do is look at their track record on this issue," ASBL President Lloyd Chapman said. "I seriously doubt that they will be able to produce any evidence of any kind to prove that they have done anything to stem the flow of federal small business contracts to Fortune 500 corporations."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
July 10, 2009
Petaluma, Calif. - After being criticized by the American Small business League (ASBL) for refusing to support legislation to stop widespread fraud and abuse in federal small business contracting programs, on July 1, the U.S. Hispanic Chamber of Commerce (USHCC) issued an abrasive and grossly misleading press release attempting to reaffirm its commitment to "comprehensive and substantive federal contracting reform."
The USHCC's commitment to contracting reform was called into question by the ASBL after the chamber refused to offer its support to H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 corporations and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
Since 2003, more than a dozen federal investigations have reported that every year billions of dollars in government small business contracts are awarded to Fortune 500 corporations and thousands of other clearly large firms around the world. The ASBL estimates that the diversion of federal small business contracts to large corporations could exceed $100 billion a year. (http://www.asbl.com/documentlibrary.html)
In its press release the USHCC and its Chairman David C. Lizárraga touted Chairwoman of the House Committee on Small Business Nydia Velázquez as the "principle champion" of reform on small business contracting issues. The USHCC has never supported any policies, or pushed for the removal of corporate giants from federal small business contracting programs, and Chairwoman Velázquez has never proposed legislation or policy that would end the abuses. Since 2002, ASBL President Lloyd Chapman and the ASBL have been the primary advocates of federal small business contracting reform. (http://www.ushcc.com/index.cfm?fuseaction=Feature.showFeature&CategoryID=2&FeatureID=109)
The ASBL challenges the USHCC to put-up or shut-up. Chapman challenges the USHCC to produce any press releases, media appearances, legislation or lawsuits filed by the chamber that would indicate the chamber has ever supported or worked towards the removal of large firms from federal small business contracting programs.
"The U.S. Hispanic Chamber of Commerce has shown no commitment to removing corporate giants from small business contracting programs. To see that, all you have to do is look at their track record on this issue," ASBL President Lloyd Chapman said. "I seriously doubt that they will be able to produce any evidence of any kind to prove that they have done anything to stem the flow of federal small business contracts to Fortune 500 corporations."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, July 8, 2009
U.S. Chamber Shows True Colors in Opposing Small Business Bill
FOR IMMEDIATE RELEASE
July 8, 2009
Petaluma, Calif. - The U.S. Chamber of Commerce's executive director for the small and mid-market business councils, Giovanni Coratolo, twice failed to acknowledge whether the U.S. Chamber would support H.R. 2568, The Fairness and Transparency in Contracting Act, during a recent widely publicized debate on CNBC with American Small Business League (ASBL) President Lloyd Chapman. (http://www.youtube.com/watch?v=ZWtLshGVEss)
H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. The bill is co-authored by Mr. Chapman in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
In a June 18 blog on the U.S. Chamber's website, Coratolo stated, "We find it more beneficial for our members to actually work for good policies, not merely rail into the ether on the injustices of the world. As an example we worked with the [Small Business Administration] SBA on a regulation that became final last year that has had a major impact on large business government contracts being classified as small. The Chamber supported this regulation. Oddly enough, Mr. Chapman's organization did not." (http://www.chamberpost.com/2009/06/business-united-or-business-divided-whats-at-stake.html)
The Small Business Administration (SBA) regulation Coratolo referred to in his blog post actually allows large firms who are receiving federal small business contracts to be grandfathered into government small business contracting programs, and continue to receive small business contracts through the year 2012. As a result more than $100 billion a year in federal contracts will continue to flow into the hands of Fortune 500 corporations and other clearly large corporations around the world. (http://www.asbl.com/showmedia.php?id=539)
"It's a mistake to believe the U.S. Chamber of Commerce represents the interests of small businesses. My goal is to expose the fact that the U.S. Chamber actually supports the interests of the Fortune 500 corporations who are currently abusing federal small business programs," Chapman said. "It is important to realize that 15 companies currently listed on the U.S. Chamber's board of directors are Fortune 500 corporations that have received billions of dollars in small business contracts every year. That's the real reason they refuse to back H.R. 2568."
Coratolo referred to the diversion of small business contracts to large corporations as an issue that affects, "only a small sliver of the business community." The U.S. Chamber has over 140,000 members that are affected by this issue. (http://www.youtube.com/watch?v=ZWtLshGVEss)
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July 8, 2009
Petaluma, Calif. - The U.S. Chamber of Commerce's executive director for the small and mid-market business councils, Giovanni Coratolo, twice failed to acknowledge whether the U.S. Chamber would support H.R. 2568, The Fairness and Transparency in Contracting Act, during a recent widely publicized debate on CNBC with American Small Business League (ASBL) President Lloyd Chapman. (http://www.youtube.com/watch?v=ZWtLshGVEss)
H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. The bill is co-authored by Mr. Chapman in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
In a June 18 blog on the U.S. Chamber's website, Coratolo stated, "We find it more beneficial for our members to actually work for good policies, not merely rail into the ether on the injustices of the world. As an example we worked with the [Small Business Administration] SBA on a regulation that became final last year that has had a major impact on large business government contracts being classified as small. The Chamber supported this regulation. Oddly enough, Mr. Chapman's organization did not." (http://www.chamberpost.com/2009/06/business-united-or-business-divided-whats-at-stake.html)
The Small Business Administration (SBA) regulation Coratolo referred to in his blog post actually allows large firms who are receiving federal small business contracts to be grandfathered into government small business contracting programs, and continue to receive small business contracts through the year 2012. As a result more than $100 billion a year in federal contracts will continue to flow into the hands of Fortune 500 corporations and other clearly large corporations around the world. (http://www.asbl.com/showmedia.php?id=539)
"It's a mistake to believe the U.S. Chamber of Commerce represents the interests of small businesses. My goal is to expose the fact that the U.S. Chamber actually supports the interests of the Fortune 500 corporations who are currently abusing federal small business programs," Chapman said. "It is important to realize that 15 companies currently listed on the U.S. Chamber's board of directors are Fortune 500 corporations that have received billions of dollars in small business contracts every year. That's the real reason they refuse to back H.R. 2568."
Coratolo referred to the diversion of small business contracts to large corporations as an issue that affects, "only a small sliver of the business community." The U.S. Chamber has over 140,000 members that are affected by this issue. (http://www.youtube.com/watch?v=ZWtLshGVEss)
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Tuesday, July 7, 2009
California Chamber of Commerce Opposes Small Business Bill
FOR IMMEDIATE RELEASE
July 7, 2009
Petaluma, Calif. - The California Chamber of Commerce has expressed opposition to legislation recently introduced in the House of Representatives, H.R. 2568, the Fairness and Transparency in Contracting Act. H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
When asked for an explanation of its opposition, the California Chamber could not cite any specific reason as to why it would not support H.R. 2568, which would greatly help California's 3.5 million small businesses.
Since 2003, over a dozen federal investigations have shown rampant fraud and abuse in federal small business contracting programs, which have allowed over $100 billion a year in small business contracts to go to some of the largest firms in the United States and Europe. Based on those investigations and independent research, the American Small Business League (ASBL) estimates that H.R. 2568 will create an estimated 400,000 new jobs and bring an additional $10 billion a year in federal small business contracts into California.
The Fairness and Transparency in Contracting Act was originally drafted by Lloyd Chapman, President of the California-based ASBL, in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues.
The California Chamber's close ties to Fortune 500 companies and the U.S. Chamber of Commerce may have influenced its decision to oppose H.R. 2568. Research conducted by the ASBL shows that 10 members of the California Chamber's Board of Directors are Fortune 500 companies, which have received billions of dollars in federal small business contracts. Those firms include such corporate giants as SAIC, Microsoft, Siemens, Northrop-Grumman, KPMG, and Lockheed Martin. (http://www.calchamber.com/AboutUs/Pages/BoardofDirectors.aspx)
The California Chamber seems to be following the lead of the U.S. Chamber of Commerce, which indicated it would also oppose the Fairness and Transparency in Contracting Act. Additional research also shows that 15 members of U.S. Chamber's Board of Directors are Fortune 500 companies that have received billions of dollars in federal small business contracts. (http://www.uschamber.com/about/board/all.htm)
"With California in the grips of a financial meltdown and budget crisis, I find it amazing that the California Chamber would oppose a bill that will create 400,000 new jobs and bring an additional $10 billion a year into the hands of California small businesses," ASBL President Lloyd Chapman said. "I guess the chambers loyalties to its Fortune 500 members trump the best interests for the State of California."
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July 7, 2009
Petaluma, Calif. - The California Chamber of Commerce has expressed opposition to legislation recently introduced in the House of Representatives, H.R. 2568, the Fairness and Transparency in Contracting Act. H.R. 2568 is the only legislation written to stop the flow of billions of dollars in federal small business contracts to Fortune 500 companies and foreign-owned firms. (http://www.govtrack.us/congress/bill.xpd?bill=h111-2568)
When asked for an explanation of its opposition, the California Chamber could not cite any specific reason as to why it would not support H.R. 2568, which would greatly help California's 3.5 million small businesses.
Since 2003, over a dozen federal investigations have shown rampant fraud and abuse in federal small business contracting programs, which have allowed over $100 billion a year in small business contracts to go to some of the largest firms in the United States and Europe. Based on those investigations and independent research, the American Small Business League (ASBL) estimates that H.R. 2568 will create an estimated 400,000 new jobs and bring an additional $10 billion a year in federal small business contracts into California.
The Fairness and Transparency in Contracting Act was originally drafted by Lloyd Chapman, President of the California-based ASBL, in collaboration with Senator Barbara Boxer (D-CA), Congressman Hank Johnson (D-GA), and Professor Charles Tiefer, America's foremost legal scholar on federal contracting and procurement issues.
The California Chamber's close ties to Fortune 500 companies and the U.S. Chamber of Commerce may have influenced its decision to oppose H.R. 2568. Research conducted by the ASBL shows that 10 members of the California Chamber's Board of Directors are Fortune 500 companies, which have received billions of dollars in federal small business contracts. Those firms include such corporate giants as SAIC, Microsoft, Siemens, Northrop-Grumman, KPMG, and Lockheed Martin. (http://www.calchamber.com/AboutUs/Pages/BoardofDirectors.aspx)
The California Chamber seems to be following the lead of the U.S. Chamber of Commerce, which indicated it would also oppose the Fairness and Transparency in Contracting Act. Additional research also shows that 15 members of U.S. Chamber's Board of Directors are Fortune 500 companies that have received billions of dollars in federal small business contracts. (http://www.uschamber.com/about/board/all.htm)
"With California in the grips of a financial meltdown and budget crisis, I find it amazing that the California Chamber would oppose a bill that will create 400,000 new jobs and bring an additional $10 billion a year into the hands of California small businesses," ASBL President Lloyd Chapman said. "I guess the chambers loyalties to its Fortune 500 members trump the best interests for the State of California."
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Friday, June 19, 2009
IT’S TIME TO END THE U.S. CHAMBER OF COMMERCE’S MASQUERADE AS SMALL BUSINESS ADVOCATES
A recent post on the U.S Chamber of Commerce website titled, “Business United or Business Divided – What’s at Stake?” is one of the best examples you could find of typical U.S. Chamber propaganda. As he did in our heated exchange on CNBC, Chamber spokesman Giovanni Coratolo struggles to piece together a series of outright lies, blatant fabrications and misdirection to try and attack me and cover up the U.S Chamber’s actual pro-Fortune 500 and anti-small business track record. (http://www.chamberpost.com/2009/06/business-united-or-business-divided-whats-at-stake.html)
If you haven’t seen our debate on CNBC, you can find it on YouTube under, “ASBL President Lloyd Chapman spars with U.S. Chamber of Commerce.” I hope
I get a chance to finish our debate on national television sometime soon. (http://www.youtube.com/watch?v=ZWtLshGVEss)
Let me focus on Giovanni’s statement referring to the annual diversion of over $100 billion a year in federal small business contracts to corporate giants as a “niche issue” that will “impact only a small sliver of the business community.”
The truth is, no issue affecting American small businesses has been the subject of more federal investigations and more stories in the mainstream media than the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses.
Since 2003 there have been over a dozen federal investigations on the issue and hundreds of stories. Every major newspaper in the country has reported on the problem along with major television networks like ABC, CBS and CNN.
In Report 5-15, the Small Business Administration (SBA) Office of Inspector General stated, “One of the biggest challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving federal small business awards…” (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama acknowledged the magnitude of the problem 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)
As opposed to the U.S. Chamber’s position that this is a “niche issue” that will impact “only a small sliver of the business community,” this issue has negatively impacted every man, woman and child in America. You don’t have to be an economist to understand the diversion of over $100 billion a year from the middle class, year after year will have a devastating negative impact on the national economy.
The U.S Chamber claims to have 3 million members, 96% with less than 100 employees and 5% of those firms do business with the government. That comes out to 144,000 U.S Chamber members that are small businesses being negatively impacted by this issue.
Now let’s look at what the U.S. Chamber has done over the last seven years to address what the SBA Inspector General referred to as one of the largest challenges facing the SBA and “the entire federal government today.”
NOTHING!
No lobbying, no press conference, no press releases, no blog posts, no legislation, no lawsuits, no newspaper stories, no radio interviews, nothing on their website!
Why wouldn’t the organization that claims to be the most powerful voice for small business in American lift a finger to address a problem that is impacting millions of small businesses, including 144,000 of their own members?
Because the Fortune 500 firms that are receiving the lion’s share of all federal small business contracts are some of the most powerful members of the U.S. Chamber. Dozens of Fortune 500 firms that are currently receiving billions of dollars in federal small business contracts serve on the Board of Directors of the U.S. Chamber.
Take a look at stories on this issue from the Associated Press, the New York Times and the Washington Post. Take a look at the investigative stories by ABC, CBS and CNN. (AP, http://www.cbsnews.com/stories/2003/05/07/politics/main552758.shtml; NYT, http://www.nytimes.com/2006/07/06/business/06sba.html; WaPo, http://www.asbl.com/showmedia.php?id=1179; 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)
Now take a look at the list of firms that belong to the U.S. Chamber and serve on their board. Over fifteen Fortune 500 firms on the U.S. Chamber board have received federal small business contracts. (http://www.uschamber.com/about/board/all.htm)
Small businesses in America need to quit listening to what the U.S Chamber says and start to watch what they do. If you do that, you will quickly realize they are no friend to American’s 27 million small businesses.
If you haven’t seen our debate on CNBC, you can find it on YouTube under, “ASBL President Lloyd Chapman spars with U.S. Chamber of Commerce.” I hope
I get a chance to finish our debate on national television sometime soon. (http://www.youtube.com/watch?v=ZWtLshGVEss)
Let me focus on Giovanni’s statement referring to the annual diversion of over $100 billion a year in federal small business contracts to corporate giants as a “niche issue” that will “impact only a small sliver of the business community.”
The truth is, no issue affecting American small businesses has been the subject of more federal investigations and more stories in the mainstream media than the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses.
Since 2003 there have been over a dozen federal investigations on the issue and hundreds of stories. Every major newspaper in the country has reported on the problem along with major television networks like ABC, CBS and CNN.
In Report 5-15, the Small Business Administration (SBA) Office of Inspector General stated, “One of the biggest challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving federal small business awards…” (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama acknowledged the magnitude of the problem 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)
As opposed to the U.S. Chamber’s position that this is a “niche issue” that will impact “only a small sliver of the business community,” this issue has negatively impacted every man, woman and child in America. You don’t have to be an economist to understand the diversion of over $100 billion a year from the middle class, year after year will have a devastating negative impact on the national economy.
The U.S Chamber claims to have 3 million members, 96% with less than 100 employees and 5% of those firms do business with the government. That comes out to 144,000 U.S Chamber members that are small businesses being negatively impacted by this issue.
Now let’s look at what the U.S. Chamber has done over the last seven years to address what the SBA Inspector General referred to as one of the largest challenges facing the SBA and “the entire federal government today.”
NOTHING!
No lobbying, no press conference, no press releases, no blog posts, no legislation, no lawsuits, no newspaper stories, no radio interviews, nothing on their website!
Why wouldn’t the organization that claims to be the most powerful voice for small business in American lift a finger to address a problem that is impacting millions of small businesses, including 144,000 of their own members?
Because the Fortune 500 firms that are receiving the lion’s share of all federal small business contracts are some of the most powerful members of the U.S. Chamber. Dozens of Fortune 500 firms that are currently receiving billions of dollars in federal small business contracts serve on the Board of Directors of the U.S. Chamber.
Take a look at stories on this issue from the Associated Press, the New York Times and the Washington Post. Take a look at the investigative stories by ABC, CBS and CNN. (AP, http://www.cbsnews.com/stories/2003/05/07/politics/main552758.shtml; NYT, http://www.nytimes.com/2006/07/06/business/06sba.html; WaPo, http://www.asbl.com/showmedia.php?id=1179; 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)
Now take a look at the list of firms that belong to the U.S. Chamber and serve on their board. Over fifteen Fortune 500 firms on the U.S. Chamber board have received federal small business contracts. (http://www.uschamber.com/about/board/all.htm)
Small businesses in America need to quit listening to what the U.S Chamber says and start to watch what they do. If you do that, you will quickly realize they are no friend to American’s 27 million small businesses.
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