FOR IMMEDIATE RELEASE
August 26, 2009
Petaluma, Calif. - A loophole created by the federal government is having a significant negative impact on the economic recovery of middle class America. The latest U.S. Census Bureau data shows that 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.2 percent of the private sector work force, create over 97 percent of all net new jobs and generate over 50 percent of the Gross Domestic Product (GDP).
Federal law stipulates that 23 percent of the total value of all federal contracts awarded each year shall go to small businesses.
With the annual federal acquisition budget hovering around $700 billion, the nation's 27 million small businesses should be able to count on approximately $161 billion a year in federal contracts being channeled into the middle class economy.
Unfortunately, the federal government has created colossal loopholes that have diverted the vast majority of federal small business contracts away from middle class America and into the hands of many of the largest firms in the world.
The federal government adopted a policy, which allowed large businesses to acquire a small business and retain that firm's small business status for 20 years. A reporter from CBS forced this out of an SBA official in a 2004 interview. In July of 2007, the Small Business Administration (SBA) implemented a rule change requiring 5-year recertification of small business status. This rule change "grandfathered" large businesses currently receiving federal small business contracts into the government's contracting data. As a result, the overwhelming majority of federal contracts intended for American small businesses will be diverted to Fortune 500 firms and thousands of large businesses around the world until the year 2012.
Last week, the Obama Administration released the latest data on federal contracts awarded to small businesses. The top recipient of federal small business contracts was Textron. Textron is a Fortune 500 firm with 43,000 employees and over $14 billion in annual sales. Their AAI division received $775,773,505 in small business contracts during fiscal year (FY) 2008. (http://www.asbl.com/documents/20090821Top100SBContracting%20Numbers2008.pdf)
Other firms receiving federal small business contracts included, British Aerospace (BAE), Lockheed Martin, Boeing, Raytheon, GTSI, L-3 Communications, Northrop Grumman, Booz Allen Hamilton, General Dynamics, 3M Company, Hewlett-Packard, AT&T, Dell Computer, Staples, Office Depot, Xerox, General Electric, Rolls-Royce and French firm Thales Communications. Finmeccanica SpA in Italy with more than 73,000 employees received $273,872,995 in small business contracts; Ssangyong Corporation in Seoul, South Korea received $254,149,950 in federal small business contracts. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) estimates that over $100 billion a year in federal contracts that by law should go to middle class firms are diverted to worldwide corporate giants. (www.asbl.com)
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Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, August 26, 2009
Tuesday, August 25, 2009
Obama Administration Juggles the Books to Shortchange Small Businesses Out of Billions
FOR IMMEDIATE RELEASE
August 25, 2009
Petaluma, Calif. – The Obama Administration released its latest small business contracting statistics on August 21, claiming that the federal government awarded 21.5 percent of federal contracts to small businesses. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) has uncovered information within the Federal Procurement Data System - Next Generation (FPDS-NG), which indicates that the government actually did closer to 7 percent with small businesses.
Since 2003, over a dozen federal investigations have found that federal officials consistently inflated the government's actual small business contracting data, and allowed billions of dollars in federal contracts intended for small businesses to be diverted to corporate giants.
One technique used by the government to misrepresent compliance with the congressionally mandated 23 percent small business contracting goal was to create the term, "small business eligible." Using this technique, government officials subtract larger federal prime contracts from the overall federal acquisition budget. Reducing the actual federal acquisition budget significantly inflates the percentage of all federal contracts awarded to small businesses.
The ASBL points out that excluding large contracts as not being "small business eligible" is not supported by any statute of the law, and is contrary to the actual language of the Small Business Act which states, "The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year." (http://www.sba.gov/regulations/sbaact/sbaact.html) The ASBL estimates that the actual federal acquisition budget for 2008 was approximately $700 billion. The SBA used a figure of $434 billion to arrive at the 21.5 percent number. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/fy2008official_goaling_report.html)
Another technique, uncovered in federal investigations and used by government officials to misrepresent the actual percentage of federal contracts awarded to small businesses, is to include billions of dollars in contracts to Fortune 500 firms and hundreds of other large businesses as small business awards.
Some of the firms Obama officials used to reach the government’s 21.5 percent figure included Lockheed Martin, Textron, Boeing, Raytheon, L-3 Communications, Northrop Grumman, Dell Computer, General Dynamics, Office Depot, Xerox, 3M, Staples, GTSI, General Electric, AT&T, Hewlett-Packard, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees.
In response to the SBA's release of its 2008 small business goaling report, the ASBL conducted a detailed analysis of small business contracting data obtained from FPDS-NG. By excluding the large recipients of federal small business contracts and using the actual federal budget from fiscal year 2000 forward, the ASBL has estimated that legitimate American small businesses have lost an average of approximately $100 billion a year in government small business contracts.
A new bill titled the "Fairness and Transparency in Contracting Act," or H.R. 2568 has been introduced into the House of Representatives would redirect billions of dollars in federal small business contracts back to legitimate American owned small businesses.
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Please click here to watch our response to the Obama Administration’s small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 25, 2009
Petaluma, Calif. – The Obama Administration released its latest small business contracting statistics on August 21, claiming that the federal government awarded 21.5 percent of federal contracts to small businesses. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The American Small Business League (ASBL) has uncovered information within the Federal Procurement Data System - Next Generation (FPDS-NG), which indicates that the government actually did closer to 7 percent with small businesses.
Since 2003, over a dozen federal investigations have found that federal officials consistently inflated the government's actual small business contracting data, and allowed billions of dollars in federal contracts intended for small businesses to be diverted to corporate giants.
One technique used by the government to misrepresent compliance with the congressionally mandated 23 percent small business contracting goal was to create the term, "small business eligible." Using this technique, government officials subtract larger federal prime contracts from the overall federal acquisition budget. Reducing the actual federal acquisition budget significantly inflates the percentage of all federal contracts awarded to small businesses.
The ASBL points out that excluding large contracts as not being "small business eligible" is not supported by any statute of the law, and is contrary to the actual language of the Small Business Act which states, "The Government-wide goal for participation by small business concerns shall be established at not less than 23 percent of the total value of all prime contract awards for each fiscal year." (http://www.sba.gov/regulations/sbaact/sbaact.html) The ASBL estimates that the actual federal acquisition budget for 2008 was approximately $700 billion. The SBA used a figure of $434 billion to arrive at the 21.5 percent number. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/fy2008official_goaling_report.html)
Another technique, uncovered in federal investigations and used by government officials to misrepresent the actual percentage of federal contracts awarded to small businesses, is to include billions of dollars in contracts to Fortune 500 firms and hundreds of other large businesses as small business awards.
Some of the firms Obama officials used to reach the government’s 21.5 percent figure included Lockheed Martin, Textron, Boeing, Raytheon, L-3 Communications, Northrop Grumman, Dell Computer, General Dynamics, Office Depot, Xerox, 3M, Staples, GTSI, General Electric, AT&T, Hewlett-Packard, British Aerospace (BAE), Rolls-Royce, French giant Thales, Ssangyong Corporation headquartered in Seoul, South Korea and Finmeccanica SpA which is located in Italy with 73,000 employees.
In response to the SBA's release of its 2008 small business goaling report, the ASBL conducted a detailed analysis of small business contracting data obtained from FPDS-NG. By excluding the large recipients of federal small business contracts and using the actual federal budget from fiscal year 2000 forward, the ASBL has estimated that legitimate American small businesses have lost an average of approximately $100 billion a year in government small business contracts.
A new bill titled the "Fairness and Transparency in Contracting Act," or H.R. 2568 has been introduced into the House of Representatives would redirect billions of dollars in federal small business contracts back to legitimate American owned small businesses.
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Please click here to watch our response to the Obama Administration’s small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, August 24, 2009
Obama Administration Small Business Data Includes Billions to Corporate Giants
FOR IMMEDIATE RELEASE
August 24, 2009
Petaluma, Calif. - On August 21st, the Obama Administration released its latest statistics on the volume of federal contracts awarded to small businesses. Federal law requires a minimum of 23 percent of the total value of all federal contracts to be awarded to small businesses. Federal statute defines a small business as being "independently owned," which excludes publicly traded firms.
The Obama Administration is claiming the government awarded $93.3 billion in contracts to small businesses or 21.5 percent during fiscal year (FY) 2008.
According to information from the Federal Procurement Data System - Next Generation (FPDS-NG), of the ten largest recipients of federal small business contracts, 85.4 percent of the contracts went to large businesses. Eight of the top ten recipients of small business contracts were large businesses.
The top recipient of government small business contracts was Textron, which received $775.7 million. Textron is a Fortune 500 firm with 83,000 employees and over $25 billion in annual revenue.
Two other top ten recipients of federal small business contracts were Ssangyong Corporation, which is headquartered in Seoul, Korea and received over $254 million and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees and received over $283 million in contracts.
The 14th largest recipient of federal small business contracts is listed as "Miscellaneous Foreign Contractors" with $210 million in government small business contracts.
Other firms included in the Obama Administration's small business data were Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales.
Since 2003, over a dozen federal investigations have found that legitimate small businesses have lost billions of dollars in federal small business contracts, which have been diverted to many of the largest firms around the world. In 2005, the SBA Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today." (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama promised to halt the rampant abuses 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 taken no actions to honor his campaign promise, and corporate giants continue to dominate government small business contracting programs.
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, legitimate small businesses have lost over $50 billion in federal small business contracts to corporate giants. (www.asbl.com)
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Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 24, 2009
Petaluma, Calif. - On August 21st, the Obama Administration released its latest statistics on the volume of federal contracts awarded to small businesses. Federal law requires a minimum of 23 percent of the total value of all federal contracts to be awarded to small businesses. Federal statute defines a small business as being "independently owned," which excludes publicly traded firms.
The Obama Administration is claiming the government awarded $93.3 billion in contracts to small businesses or 21.5 percent during fiscal year (FY) 2008.
According to information from the Federal Procurement Data System - Next Generation (FPDS-NG), of the ten largest recipients of federal small business contracts, 85.4 percent of the contracts went to large businesses. Eight of the top ten recipients of small business contracts were large businesses.
The top recipient of government small business contracts was Textron, which received $775.7 million. Textron is a Fortune 500 firm with 83,000 employees and over $25 billion in annual revenue.
Two other top ten recipients of federal small business contracts were Ssangyong Corporation, which is headquartered in Seoul, Korea and received over $254 million and Finmeccanica SpA, which is headquartered in Italy with 73,000 employees and received over $283 million in contracts.
The 14th largest recipient of federal small business contracts is listed as "Miscellaneous Foreign Contractors" with $210 million in government small business contracts.
Other firms included in the Obama Administration's small business data were Lockheed Martin, Boeing, Raytheon, Northrop Grumman, General Dynamics, AT&T, 3M Corporation, Xerox, Dell Computer, Booz Allen Hamilton, Hewlett-Packard, General Electric, Staples, Office Depot, British Aerospace (BAE), Rolls-Royce and French firm Thales.
Since 2003, over a dozen federal investigations have found that legitimate small businesses have lost billions of dollars in federal small business contracts, which have been diverted to many of the largest firms around the world. In 2005, the SBA Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire federal government today." (http://www.asbl.com/documents/05-15.pdf)
In February of 2008, President Obama promised to halt the rampant abuses 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 taken no actions to honor his campaign promise, and corporate giants continue to dominate government small business contracting programs.
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, legitimate small businesses have lost over $50 billion in federal small business contracts to corporate giants. (www.asbl.com)
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Please click here to watch our response to the Obama Administration's small business contracting statistics: http://www.youtube.com/watch?v=oV0jeTrYPsM
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Friday, August 21, 2009
Obama Administration Fabricates Small Business Contracting Data
FOR IMMEDIATE RELEASE
August 21, 2009
Petaluma, Calif. - The American Small Business League (ASBL) is challenging the latest statistics released by the Obama Administration regarding the volume of federal contracts aawarded to small businesses during fiscal year (FY) 2008. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/goals_08_gov_wide.pdf)
Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts have been awarded to Fortune 500 firms and some of the largest corporations in the United States and Europe. (http://www.asbl.com/documentlibrary.html)
Every major newspaper in the country has covered this story along with a number of major television networks like ABC, CBS, CNN and FOX. These stories have reported that firms like British Aerospace (BAE), Xerox, Dell Computer, John Deere, Microsoft, Wal-Mart and Rolls-Royce have all received federal small business contracts. (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; FOX, http://www.asbl.com/showmedia.php?id=1388)
In February of 2008, President Obama acknowledged the extent of the abuses when he said, "Over half of all Americans work for a small business. 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)
To date, President Obama has refused to support legislation such as H.R. 2568, the Fairness and Transparency in Contracting Act of 2009 or adopt any policy that would stem the flow of federal small business contracts to large corporations. Consequently, the same Fortune 500 firms that were allowed to receive small business contracts during the Bush Administration continue to receive federal small business contracts.
The ASBL points out that the government's small business contracting statistics have been inflated or falsified in several ways. In one way, the government under-reported the total volume of the federal acquisition budget as a means of manipulating the final percentage reported as going to small businesses. Secondly, the Obama Administration continues to include Fortune 500 firms in the government's small business contracting statistics.
The ASBL will release a more detailed analysis of the Obama Administration's 2008 small business contracting statistics early next week.
"Despite all of President Obama's pre- and post-campaign rhetoric regarding small businesses, the fact is that the Obama Administration is allowing approximately $400 million a day in federal small business contracts to be awarded to Fortune 500 firms and some of the largest corporations in the world," ASBL President Lloyd Chapman said. "The fact that the Obama Administration is awarding small business contracts to Fortune 500 corporations cannot be denied. It is irrefutable. I challenge anyone in the country to prove me wrong. In my mind, the Obama Administration is anti-small business, and we all need to stop listening to what they say, and start looking at what they do."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 21, 2009
Petaluma, Calif. - The American Small Business League (ASBL) is challenging the latest statistics released by the Obama Administration regarding the volume of federal contracts aawarded to small businesses during fiscal year (FY) 2008. (http://www.sba.gov/idc/groups/public/documents/sba_homepage/goals_08_gov_wide.pdf)
Since 2003, over a dozen federal investigations have found that every year billions of dollars in federal small business contracts have been awarded to Fortune 500 firms and some of the largest corporations in the United States and Europe. (http://www.asbl.com/documentlibrary.html)
Every major newspaper in the country has covered this story along with a number of major television networks like ABC, CBS, CNN and FOX. These stories have reported that firms like British Aerospace (BAE), Xerox, Dell Computer, John Deere, Microsoft, Wal-Mart and Rolls-Royce have all received federal small business contracts. (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; FOX, http://www.asbl.com/showmedia.php?id=1388)
In February of 2008, President Obama acknowledged the extent of the abuses when he said, "Over half of all Americans work for a small business. 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)
To date, President Obama has refused to support legislation such as H.R. 2568, the Fairness and Transparency in Contracting Act of 2009 or adopt any policy that would stem the flow of federal small business contracts to large corporations. Consequently, the same Fortune 500 firms that were allowed to receive small business contracts during the Bush Administration continue to receive federal small business contracts.
The ASBL points out that the government's small business contracting statistics have been inflated or falsified in several ways. In one way, the government under-reported the total volume of the federal acquisition budget as a means of manipulating the final percentage reported as going to small businesses. Secondly, the Obama Administration continues to include Fortune 500 firms in the government's small business contracting statistics.
The ASBL will release a more detailed analysis of the Obama Administration's 2008 small business contracting statistics early next week.
"Despite all of President Obama's pre- and post-campaign rhetoric regarding small businesses, the fact is that the Obama Administration is allowing approximately $400 million a day in federal small business contracts to be awarded to Fortune 500 firms and some of the largest corporations in the world," ASBL President Lloyd Chapman said. "The fact that the Obama Administration is awarding small business contracts to Fortune 500 corporations cannot be denied. It is irrefutable. I challenge anyone in the country to prove me wrong. In my mind, the Obama Administration is anti-small business, and we all need to stop listening to what they say, and start looking at what they do."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, August 19, 2009
Obama Administration Rhetoric Inconsistent with Small Business Policies
FOR IMMEDIATE RELEASE
August 19, 2009
Petaluma, Calif. – On Tuesday, the Obama Administration released a press release outlining increased efforts to include small businesses in the economic recovery, and federal contracting programs. Despite mentioning the significant impact of small businesses on our nation's economy, any mention of President Obama's February 2008 campaign promise to end the diversion of federal small business contracts to corporate giants was conspicuously absent from the release.(http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_09-58.pdf)
In February of 2008 President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
Since 2003, over 15 federal investigations have found that a lion's share of government small business contracts actually go to Fortune 500 firms and thousands of large businesses around the world.
In 2005, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, over $50 billion in federal small business contracts were awarded to clearly large businesses. Critics of the Obama Administration's small business policies point to the fact that not only has President Obama not made good on his campaign promise to end the diversion of federal small business contracts to corporate giants, but thus far his administration has failed to follow-though on a majority of its promises to the small business community.
To date, the Obama Administration has failed to: restore the SBA's budget, restore the SBA administrator to a cabinet level position, stop the pentagon from dismantling programs for minority owned firms and implement the 5 percent set-aside program for women-owned firms. Finally, the administration appears to be backing new legislation that will divert even more small business contracts to some of the nation's wealthiest venture capitalists.
Of the funds allocated as part of the American Recovery and Reinvestment Act of 2009, approximately 1 percent has actually gone to America's 27 million small businesses.
"It is reprehensible that President Obama would make these statements about his support for small businesses when he has done nothing to stop the daily diversion of up to $400 million in federal small business contracts to corporate giants around the world," ASBL President Lloyd Chapman said. "The administration's press release appears to be is just another public relations ploy. If President Obama really wants to do something for small businesses, he'll make good on his campaign promise to stop the diversion of federal small business contracts to corporate giants by publicly supporting legislation such as H.R. 2568, the Fairness and Transparency in Contracting Act of 2009."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 19, 2009
Petaluma, Calif. – On Tuesday, the Obama Administration released a press release outlining increased efforts to include small businesses in the economic recovery, and federal contracting programs. Despite mentioning the significant impact of small businesses on our nation's economy, any mention of President Obama's February 2008 campaign promise to end the diversion of federal small business contracts to corporate giants was conspicuously absent from the release.(http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_09-58.pdf)
In February of 2008 President Obama stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
Since 2003, over 15 federal investigations have found that a lion's share of government small business contracts actually go to Fortune 500 firms and thousands of large businesses around the world.
In 2005, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The American Small Business League (ASBL) estimates that during the first six months of the Obama Administration, over $50 billion in federal small business contracts were awarded to clearly large businesses. Critics of the Obama Administration's small business policies point to the fact that not only has President Obama not made good on his campaign promise to end the diversion of federal small business contracts to corporate giants, but thus far his administration has failed to follow-though on a majority of its promises to the small business community.
To date, the Obama Administration has failed to: restore the SBA's budget, restore the SBA administrator to a cabinet level position, stop the pentagon from dismantling programs for minority owned firms and implement the 5 percent set-aside program for women-owned firms. Finally, the administration appears to be backing new legislation that will divert even more small business contracts to some of the nation's wealthiest venture capitalists.
Of the funds allocated as part of the American Recovery and Reinvestment Act of 2009, approximately 1 percent has actually gone to America's 27 million small businesses.
"It is reprehensible that President Obama would make these statements about his support for small businesses when he has done nothing to stop the daily diversion of up to $400 million in federal small business contracts to corporate giants around the world," ASBL President Lloyd Chapman said. "The administration's press release appears to be is just another public relations ploy. If President Obama really wants to do something for small businesses, he'll make good on his campaign promise to stop the diversion of federal small business contracts to corporate giants by publicly supporting legislation such as H.R. 2568, the Fairness and Transparency in Contracting Act of 2009."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Monday, August 17, 2009
Small Business Administration Looks Guilty Of Libel and Slander
By Lloyd Chapman
President, American Small Business League
On Monday, I filed an appeal with the Ninth Circuit Court of Appeals in San Francisco in my case against the Small Business Administration (SBA). Frankly, I was surprised that recently appointed Federal District Judge Edward M. Chen ruled in favor of the SBA when it claimed that it did not have access to its own phone records.
Federal law stipulates that federal records must be released even though they are in the possession of a third party. The law also stipulates the federal government must release documents requested under the Freedom of Information Act (FOIA), unless it can provide a legal justification for withholding it.
I am supremely confident that the panel of Judges on the Ninth Circuit Court of Appeals will not only rule unanimously in my favor, but I expect they will severely lambast the unfortunate individual representing the SBA. The last time I won a case in the Ninth Circuit Court, the judges were so outraged at the government attorney that the poor woman was in tears by the time she left the courtroom. I will never forget seeing the Pentagon's attorney walking out of the courtroom carrying a huge square briefcase and sobbing.
It doesn't surprise me that I have to actually go to federal appeals court to obtain the phone records of an SBA employee. I have won several legal battles under FOIA in and out of federal court with the SBA and other federal agencies. I can always tell how damaging the information I have requested is, based on how hard they fight to withhold it.
SBA press office staffer Mike Stamler's phone records would expose the unethical and likely illegal, inner workings of a federal agency that spends a tremendous amount of time and tax payer money trying to cover up billions of dollars in fraud and abuse against America's 27 million small businesses. Stamler's phone records will also provide clear evidence of the SBA's aggressive campaign to libel and slander me in an effort to prevent me from continuing to expose the truth about the SBA to Congress and the media.
Mr. Stamler is a prime example of everything the public does not want in a federal employee. Any journalist that has tried to tell the truth about the SBA's role in the diversion of hundreds of billions of dollars in federal small business contracts to corporate giants has a story to tell about Stamler. Stamler has earned a well deserved reputation as a foul mouthed blow-hard that tries to intimidate and harass journalists that stray from the SBA's conflicting excuses as to why Fortune 500 firms continue to receive billions of dollars in federal small business contracts year-after-year.
Over a dozen federal investigations since 2003 have described the diversion of billions of dollars in federal small business contracts to some of the largest corporations in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf) Hundreds of stories in the media have reported federal small business contracts that have actually gone to firms such as British Aerospace (BAE), Hewlett Packard, Home Depot, Microsoft, Xerox, Raytheon, Dell Computer, Rolls-Royce and thousands of other large firms.
The SBA continues to regurgitate its absurd excuses despite this overwhelming and incontrovertible volume of evidence. One such excuse is that Fortune 500 firms and thousands of the largest companies in the world have been put into the federal database of small businesses accidentally, everyday for the last decade. Next, they claim everyday since 2000; federal contracts to corporate giants around the world are reported as small business contracts accidentally through, "computer glitches" and "miscoding." The SBA has never been able to explain why all these random mistakes just happen to divert small business contracts to large businesses and never the other way around.
Their final excuse seems to contradict all the others. From time to time the agency rolls out its "Myth vs. Fact" excuse. The SBA periodically claims that it is a "myth" that large businesses receive federal small business contracts despite all the federal investigations and investigative stories to the contrary. (http://www.asbl.com/documents/sbamythvfact.pdf)
The fact that the SBA is willing to go to Federal Appeals Court to withhold Mike Stamler's phone records is a clear indication they are guilty of liable and slander against me. The fact that President Obama is willing to let this happen is also a clear indication his campaign promise of increased transparency in government is simply just another broken campaign promise.
I plan to intensify my campaign in the courts and the media to go after my opponents at the SBA and all the other con-men, liars, crooked politicians and sham small business groups that are responsible for cheating America's 27 million small businesses.
Cheating small business and attacking Lloyd Chapman and the American Small Business League (ASBL) is about to become a very unpleasant and expensive proposition.
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President, American Small Business League
On Monday, I filed an appeal with the Ninth Circuit Court of Appeals in San Francisco in my case against the Small Business Administration (SBA). Frankly, I was surprised that recently appointed Federal District Judge Edward M. Chen ruled in favor of the SBA when it claimed that it did not have access to its own phone records.
Federal law stipulates that federal records must be released even though they are in the possession of a third party. The law also stipulates the federal government must release documents requested under the Freedom of Information Act (FOIA), unless it can provide a legal justification for withholding it.
I am supremely confident that the panel of Judges on the Ninth Circuit Court of Appeals will not only rule unanimously in my favor, but I expect they will severely lambast the unfortunate individual representing the SBA. The last time I won a case in the Ninth Circuit Court, the judges were so outraged at the government attorney that the poor woman was in tears by the time she left the courtroom. I will never forget seeing the Pentagon's attorney walking out of the courtroom carrying a huge square briefcase and sobbing.
It doesn't surprise me that I have to actually go to federal appeals court to obtain the phone records of an SBA employee. I have won several legal battles under FOIA in and out of federal court with the SBA and other federal agencies. I can always tell how damaging the information I have requested is, based on how hard they fight to withhold it.
SBA press office staffer Mike Stamler's phone records would expose the unethical and likely illegal, inner workings of a federal agency that spends a tremendous amount of time and tax payer money trying to cover up billions of dollars in fraud and abuse against America's 27 million small businesses. Stamler's phone records will also provide clear evidence of the SBA's aggressive campaign to libel and slander me in an effort to prevent me from continuing to expose the truth about the SBA to Congress and the media.
Mr. Stamler is a prime example of everything the public does not want in a federal employee. Any journalist that has tried to tell the truth about the SBA's role in the diversion of hundreds of billions of dollars in federal small business contracts to corporate giants has a story to tell about Stamler. Stamler has earned a well deserved reputation as a foul mouthed blow-hard that tries to intimidate and harass journalists that stray from the SBA's conflicting excuses as to why Fortune 500 firms continue to receive billions of dollars in federal small business contracts year-after-year.
Over a dozen federal investigations since 2003 have described the diversion of billions of dollars in federal small business contracts to some of the largest corporations in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf) Hundreds of stories in the media have reported federal small business contracts that have actually gone to firms such as British Aerospace (BAE), Hewlett Packard, Home Depot, Microsoft, Xerox, Raytheon, Dell Computer, Rolls-Royce and thousands of other large firms.
The SBA continues to regurgitate its absurd excuses despite this overwhelming and incontrovertible volume of evidence. One such excuse is that Fortune 500 firms and thousands of the largest companies in the world have been put into the federal database of small businesses accidentally, everyday for the last decade. Next, they claim everyday since 2000; federal contracts to corporate giants around the world are reported as small business contracts accidentally through, "computer glitches" and "miscoding." The SBA has never been able to explain why all these random mistakes just happen to divert small business contracts to large businesses and never the other way around.
Their final excuse seems to contradict all the others. From time to time the agency rolls out its "Myth vs. Fact" excuse. The SBA periodically claims that it is a "myth" that large businesses receive federal small business contracts despite all the federal investigations and investigative stories to the contrary. (http://www.asbl.com/documents/sbamythvfact.pdf)
The fact that the SBA is willing to go to Federal Appeals Court to withhold Mike Stamler's phone records is a clear indication they are guilty of liable and slander against me. The fact that President Obama is willing to let this happen is also a clear indication his campaign promise of increased transparency in government is simply just another broken campaign promise.
I plan to intensify my campaign in the courts and the media to go after my opponents at the SBA and all the other con-men, liars, crooked politicians and sham small business groups that are responsible for cheating America's 27 million small businesses.
Cheating small business and attacking Lloyd Chapman and the American Small Business League (ASBL) is about to become a very unpleasant and expensive proposition.
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Tuesday, August 11, 2009
SBA Goes to Federal Court of Appeals to Withhold Phone Records
FOR IMMEDIATE RELEASE
August 11, 2009
Petaluma, Calif. - On Monday, August 10, the American Small Business League (ASBL) filed an appeal with the 9th Circuit Court of Appeals regarding its lawsuit against the Small Business Administration (SBA) for the release of SBA executive Mike Stamler's phone records. The ASBL originally filed suit for Stamler's phone records under the Freedom of Information Act (FOIA) after the SBA claimed that it did not have them. (http://www.asbl.com/documents/20090810notice_appeal_endorsed.pdf)
The ASBL filed suit in Federal District Court, Northern District of California in March of 2009. At the time, former U.S. Magistrate Judge Edward M. Chen ruled in favor of the SBA, supporting its claim that it does not have access to its own phone records. ASBL originally requested Stamler's phone records after several journalists told the organization that Stamler had libeled and slandered the ASBL and its President Lloyd Chapman.
In one instance, the Long Island Business Journal (LIBJ) received an angry profanity ridden email from Stamler after the publication quoted Chapman in a story about the launching of a government website. LIBJ's staff responded by issuing a blog titled, "Expletives the SBA's forte?" (http://libn.com/libizblog/2008/02/22/expletives-the-sbas-forte/)
"I am confident that we will prevail in this case. Ultimately, we have never lost a case against the SBA or any other federal agency, and I think it is almost laughable that the SBA will go to the 9th Circuit Court of Appeals in an effort to convince the court that they don't have access to their own phone records," Chapman said. "This is a perfect example of what we have seen from the SBA for years. Anytime you want to look at what they're doing, you have to go to federal court to get it. Clearly they have something to hide."
The ASBL has won a series of federal lawsuits against the SBA, and other federal agencies, which have forced the release of thousands of pages of documents, further exposing the diversion of billions of dollars in federal small business contracts to corporate giants.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
August 11, 2009
Petaluma, Calif. - On Monday, August 10, the American Small Business League (ASBL) filed an appeal with the 9th Circuit Court of Appeals regarding its lawsuit against the Small Business Administration (SBA) for the release of SBA executive Mike Stamler's phone records. The ASBL originally filed suit for Stamler's phone records under the Freedom of Information Act (FOIA) after the SBA claimed that it did not have them. (http://www.asbl.com/documents/20090810notice_appeal_endorsed.pdf)
The ASBL filed suit in Federal District Court, Northern District of California in March of 2009. At the time, former U.S. Magistrate Judge Edward M. Chen ruled in favor of the SBA, supporting its claim that it does not have access to its own phone records. ASBL originally requested Stamler's phone records after several journalists told the organization that Stamler had libeled and slandered the ASBL and its President Lloyd Chapman.
In one instance, the Long Island Business Journal (LIBJ) received an angry profanity ridden email from Stamler after the publication quoted Chapman in a story about the launching of a government website. LIBJ's staff responded by issuing a blog titled, "Expletives the SBA's forte?" (http://libn.com/libizblog/2008/02/22/expletives-the-sbas-forte/)
"I am confident that we will prevail in this case. Ultimately, we have never lost a case against the SBA or any other federal agency, and I think it is almost laughable that the SBA will go to the 9th Circuit Court of Appeals in an effort to convince the court that they don't have access to their own phone records," Chapman said. "This is a perfect example of what we have seen from the SBA for years. Anytime you want to look at what they're doing, you have to go to federal court to get it. Clearly they have something to hide."
The ASBL has won a series of federal lawsuits against the SBA, and other federal agencies, which have forced the release of thousands of pages of documents, further exposing the diversion of billions of dollars in federal small business contracts to corporate giants.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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