FOR IMMEDIATE RELEASE
June 23, 2010
Petaluma, Calif. - The Obama Administration has finally released the agenda of its June 28 small business forum. When the small business forum was originally announced on June 14, the administration requested input from small business owners and offered them the opportunity to sign up to address members of President Obama's "Interagency Task Force" on small business.
After angry small business owners from around the country registered to attend the forum and speak, the agenda was abruptly modified to apparently preclude any unscripted comments that could embarrass the Obama Administration with the attending press.
Small business owners were provided an agenda for the event via e-mail on Monday, just a week before the forum is scheduled to begin. According to the new guidelines, comments are to be limited to only three narrowly focused categories.
Small business owners that were preparing to blast the Obama Administration for giving less than 3 percent of the stimulus funds to small businesses, and breaking a series of campaign promises to the small business community, will not have that opportunity under the new agenda.
During the 2008 Presidential Campaign, President Obama promised to restore the Small Business Administration's (SBA) budget and staffing, restore the SBA Administrator to a cabinet level position, and implement the 5 percent set-aside contracting goal for women-owned firms, which was passed by Congress in 2000.
In February of 2008, President Obama also 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 failed to honor any of his campaign promises to small business owners. The American Small Business League (ASBL) recently released a study, which found 16 instances where President Obama adopted polices that were harmful to small businesses. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
The most recent data released by the federal government indicates the Obama Administration has diverted billions of dollars in federal small business contracts to corporate giants in the United States, Europe and Asia. Firms included in the Obama Administration small business data included Lockheed Martin, Boeing, Raytheon, General Dynamics, Ssangyong Corporation headquartered in South Korea, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
"If President Obama sincerely wanted to stimulate the economy and help the small businesses that create nearly 100 percent of net new jobs, he would quit diverting federal small business funds to Fortune 500 firms," ASBL President Lloyd Chapman stated.
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Please click here to watch a clip regarding the ASBL's concerns: http://www.youtube.com/watch?v=YJh26mQySos
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, June 23, 2010
Tuesday, June 22, 2010
Obama Administration Small Business Forum Rules Discourage Attendance
FOR IMMEDIATE RELEASE
June 21, 2010
Petaluma, Calif. – On Monday, June 14, the Obama Administration surprised small business owners across the country by announcing a small business forum to be held at the U.S. Department of Commerce on June 28. The agenda has been so narrowly focused that it will be difficult, if not impossible, for meeting attendees to bring up President Obama's broken campaign promises to small businesses such as, "it is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The American Small Business League (ASBL) believes the Obama Administration has fast tracked the registration process and erected barriers as a means of discouraging attendance by small business interests outside the Washington D.C. area.
The ASBL maintains the short notice and other registration barriers may have a chilling effect on the attendance of small business owners who take issue with the Obama Administration's poor track record for small businesses. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
Although the forum was supposedly designed to collect input from small businesses on ways to increase their business with government, no small business registrant has received notification that they will be allowed to speak. Legitimate small business organizations or individual small business owners who had hoped to be heard, will not know if they will be allowed to speak. This has made it extremely difficult for small business owners outside the Washington area to attend. To make matters worse, the forum will be extremely short, which has also discouraged individuals around the country from attending.
The ASBL believes the true purpose of the forum is to gain support in the media for Obama Administration policies that may actually reduce small business contracting opportunities with the federal government.
"I guarantee President Obama will try to use his small business task force and this meeting to push policies that will actually reduce the volume of federal contracts to legitimate small businesses under the guise of helping small businesses," ASBL President Lloyd Chapman said. "A proposal to change the definition of a small business, which would divert small business funds to firms controlled by venture capitalists, is a certainty. I wouldn't be surprised if he tried to weaken small business programs further by breaking up the SBA. Big defense contractors and wealthy venture capitalists want the $150 billion that is supposed to go to small businesses, and they contributed hundreds of millions of dollars to President Obama and congress to achieve that goal."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
June 21, 2010
Petaluma, Calif. – On Monday, June 14, the Obama Administration surprised small business owners across the country by announcing a small business forum to be held at the U.S. Department of Commerce on June 28. The agenda has been so narrowly focused that it will be difficult, if not impossible, for meeting attendees to bring up President Obama's broken campaign promises to small businesses such as, "it is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The American Small Business League (ASBL) believes the Obama Administration has fast tracked the registration process and erected barriers as a means of discouraging attendance by small business interests outside the Washington D.C. area.
The ASBL maintains the short notice and other registration barriers may have a chilling effect on the attendance of small business owners who take issue with the Obama Administration's poor track record for small businesses. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
Although the forum was supposedly designed to collect input from small businesses on ways to increase their business with government, no small business registrant has received notification that they will be allowed to speak. Legitimate small business organizations or individual small business owners who had hoped to be heard, will not know if they will be allowed to speak. This has made it extremely difficult for small business owners outside the Washington area to attend. To make matters worse, the forum will be extremely short, which has also discouraged individuals around the country from attending.
The ASBL believes the true purpose of the forum is to gain support in the media for Obama Administration policies that may actually reduce small business contracting opportunities with the federal government.
"I guarantee President Obama will try to use his small business task force and this meeting to push policies that will actually reduce the volume of federal contracts to legitimate small businesses under the guise of helping small businesses," ASBL President Lloyd Chapman said. "A proposal to change the definition of a small business, which would divert small business funds to firms controlled by venture capitalists, is a certainty. I wouldn't be surprised if he tried to weaken small business programs further by breaking up the SBA. Big defense contractors and wealthy venture capitalists want the $150 billion that is supposed to go to small businesses, and they contributed hundreds of millions of dollars to President Obama and congress to achieve that goal."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, June 17, 2010
Obama Small Business Conference Draws Criticism
FOR IMMEDIATE RELEASE
June 17, 2010
Petaluma, Calif. – On Monday, June 14, the Obama Administration suddenly announced that it will hold a small business forum in Washington D.C. on June 28. Obama Administration officials claim the purpose of the forum is to collect public input on the administration's recently established Interagency Task Force on Small Business. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)
Small business groups and owners around the country are concerned about the short notice the Obama Administration has given members of the small business community regarding the meeting. The American Small Business League (ASBL) believes the Obama Administration opted to hold the meeting in Washington D.C. on short notice to minimize comments from angry small businesses over the administration's failed small business track record. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
During the 2008 campaign President Obama made a wide variety of promises to the small business community, including a promise to, "end the diversion of federal small business contracts to corporate giants." To date, President Obama has refused to honor those promises.
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In the most egregious example, President Obama has allowed the continued diversion of more than $100 billion a year in federal small business contracts to Fortune 500 firms and even some of the largest corporations in the world. Since 2003, over a dozen federal investigations have uncovered the diversion of billions of dollars in small business contracts to corporate giants. (http://www.asbl.com/documentlibrary.html)
The ASBL has launched a national campaign to rally small business groups and small business owners around the country to attend the meeting and send comments to the small business task force. The public has until Monday, June 21 to register to attend the event and Wednesday, June 30 to submit comments. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)
"I'm predicting that the Obama Administration will use its 'small business task force,' and this sham meeting on June 28, to push anti-small business policies like: changing the definition of small business to include larger firms, increasing small business size standards or dismantling the SBA by combining it with the U.S. Department of Commerce," ASBL President Lloyd Chapman said. "If President Obama really wanted to help small businesses he would quit diverting small business funds to Fortune 500 firms. Small business owners around the country need to prepare themselves to oppose any new Obama Administration policy that will actually weaken federal small business contracting programs under the guise of helping small businesses."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
June 17, 2010
Petaluma, Calif. – On Monday, June 14, the Obama Administration suddenly announced that it will hold a small business forum in Washington D.C. on June 28. Obama Administration officials claim the purpose of the forum is to collect public input on the administration's recently established Interagency Task Force on Small Business. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)
Small business groups and owners around the country are concerned about the short notice the Obama Administration has given members of the small business community regarding the meeting. The American Small Business League (ASBL) believes the Obama Administration opted to hold the meeting in Washington D.C. on short notice to minimize comments from angry small businesses over the administration's failed small business track record. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
During the 2008 campaign President Obama made a wide variety of promises to the small business community, including a promise to, "end the diversion of federal small business contracts to corporate giants." To date, President Obama has refused to honor those promises.
(http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
In the most egregious example, President Obama has allowed the continued diversion of more than $100 billion a year in federal small business contracts to Fortune 500 firms and even some of the largest corporations in the world. Since 2003, over a dozen federal investigations have uncovered the diversion of billions of dollars in small business contracts to corporate giants. (http://www.asbl.com/documentlibrary.html)
The ASBL has launched a national campaign to rally small business groups and small business owners around the country to attend the meeting and send comments to the small business task force. The public has until Monday, June 21 to register to attend the event and Wednesday, June 30 to submit comments. (http://edocket.access.gpo.gov/2010/pdf/2010-14144.pdf)
"I'm predicting that the Obama Administration will use its 'small business task force,' and this sham meeting on June 28, to push anti-small business policies like: changing the definition of small business to include larger firms, increasing small business size standards or dismantling the SBA by combining it with the U.S. Department of Commerce," ASBL President Lloyd Chapman said. "If President Obama really wanted to help small businesses he would quit diverting small business funds to Fortune 500 firms. Small business owners around the country need to prepare themselves to oppose any new Obama Administration policy that will actually weaken federal small business contracting programs under the guise of helping small businesses."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Thursday, June 10, 2010
Lloyd Chapman: Help us save the economy with small businesses!
A video letter to the editor of the Central Valley Business Times. http://www.centralvalleybusinesstimes.com/letters/
General Services Administration Officials to be Deposed in Lawsuit Over Contracting Data
FOR IMMEDIATE RELEASE
June 10, 2010
Petaluma, Calif. – On Wednesday, June 9, United States District Court Judge William Alsup denied the American Small Business League's (ASBL) motion for a preliminary injunction against the General Services Administration (GSA). The ASBL originally filed the motion in response to GSA actions to remove information from the federal government's contracting database. Historically, the information has been used to uncover billions of dollars in small business contracts flowing to Fortune 500 firms. (http://www.asbl.com/documents/order_Denying_prelim.pdf)
Investigations by the Small Business Administration Office of Inspector General (SBA IG), U.S. Government Accountability Office (U.S. GAO) and inspector generals from a series of other federal agencies have used the field, "small business flag," to identify large companies masquerading as small businesses to receive federal contracts.
Since 2003, these investigations have uncovered billions of dollars in federal small business contracts actually ending up in the hands of Fortune 500 firms and some of the largest businesses in Europe and Asia. The most recent data released by the government indicates that the recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, General Dynamics, Ssangyong Corporation headquartered in South Korea, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
In response to the court's ruling, the ASBL intends to pursue a permanent injunction against the GSA to prevent the destruction of the field on all future and historical data available to the public.
In the court's ruling, Alsup stated, "In the present action, plaintiff has not shown that the deletion of the search fields was a significant revision. Nevertheless, it should be given opportunity to do so by obtaining discovery on the pedigree of the change." In accordance with Alsup's ruling, the ASBL will subpoena emails and other materials within the GSA. The ASBL believes the information will show that the destruction of the "small business flag" was in fact a "significant revision," in that it will make it difficult, if not impossible, for federal investigators to uncover billions in fraud and abuse in small business contracting programs.
"We are looking forward to deposing senior GSA officials, and issuing subpoenas for their internal documents. I am confident that we can prove the removal of the small business flag is not in the public interest," ASBL President Lloyd Chapman said. "It is obvious the GSA is attempting to reduce transparency, and hide the fact that the Obama Administration is diverting billions of dollars a week in federal small business funds to corporate giants."
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
June 10, 2010
Petaluma, Calif. – On Wednesday, June 9, United States District Court Judge William Alsup denied the American Small Business League's (ASBL) motion for a preliminary injunction against the General Services Administration (GSA). The ASBL originally filed the motion in response to GSA actions to remove information from the federal government's contracting database. Historically, the information has been used to uncover billions of dollars in small business contracts flowing to Fortune 500 firms. (http://www.asbl.com/documents/order_Denying_prelim.pdf)
Investigations by the Small Business Administration Office of Inspector General (SBA IG), U.S. Government Accountability Office (U.S. GAO) and inspector generals from a series of other federal agencies have used the field, "small business flag," to identify large companies masquerading as small businesses to receive federal contracts.
Since 2003, these investigations have uncovered billions of dollars in federal small business contracts actually ending up in the hands of Fortune 500 firms and some of the largest businesses in Europe and Asia. The most recent data released by the government indicates that the recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, General Dynamics, Ssangyong Corporation headquartered in South Korea, and Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
In response to the court's ruling, the ASBL intends to pursue a permanent injunction against the GSA to prevent the destruction of the field on all future and historical data available to the public.
In the court's ruling, Alsup stated, "In the present action, plaintiff has not shown that the deletion of the search fields was a significant revision. Nevertheless, it should be given opportunity to do so by obtaining discovery on the pedigree of the change." In accordance with Alsup's ruling, the ASBL will subpoena emails and other materials within the GSA. The ASBL believes the information will show that the destruction of the "small business flag" was in fact a "significant revision," in that it will make it difficult, if not impossible, for federal investigators to uncover billions in fraud and abuse in small business contracting programs.
"We are looking forward to deposing senior GSA officials, and issuing subpoenas for their internal documents. I am confident that we can prove the removal of the small business flag is not in the public interest," ASBL President Lloyd Chapman said. "It is obvious the GSA is attempting to reduce transparency, and hide the fact that the Obama Administration is diverting billions of dollars a week in federal small business funds to corporate giants."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, June 9, 2010
NASA Sued For Refusing to Release Contracting Data on United Space Alliance
FOR IMMEDIATE RELEASE
June 9, 2010
Petaluma, Calif. – On Tuesday, June 8, the American Small Business League (ASBL) filed suit against the National Aeronautics and Space Administration (NASA) in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after NASA repeatedly refused to release subcontracting reports for contracts issued to United Space Alliance, LLC, a joint venture between defense giants Lockheed Martin and Boeing. (http://www.asbl.com/documents/20100608_NASA_USA_Complaint.pdf)
The ASBL originally requested information on United Space Alliance's compliance with small business subcontracting goals on NASA contracts awarded to the contractor. During fiscal year (FY) 2009, United Space Alliance was awarded over $1.5 billion in contracts from NASA.
Tuesday's suit is the third lawsuit filed by the ASBL against NASA. In February of 2007, the ASBL prevailed in its first suit against NASA, forcing the agency to provide detailed information proving that it falsified its small business contracting statistics by including contracts to a variety of Fortune 500 firms and other large businesses.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
"We believe that NASA is withholding data which shows that the agency is inflating the achievement of its congressionally mandated small business goals by including Fortune 500 corporations and other clearly large businesses. We also believe that NASA is withholding data that will prove that they are allowing major prime contractors to falsify compliance with congressionally mandated small business contracting goals," ASBL President Lloyd Chapman said. "It is disappointing to see that President Obama's promise of increased transparency was just another broken campaign promise." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
June 9, 2010
Petaluma, Calif. – On Tuesday, June 8, the American Small Business League (ASBL) filed suit against the National Aeronautics and Space Administration (NASA) in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after NASA repeatedly refused to release subcontracting reports for contracts issued to United Space Alliance, LLC, a joint venture between defense giants Lockheed Martin and Boeing. (http://www.asbl.com/documents/20100608_NASA_USA_Complaint.pdf)
The ASBL originally requested information on United Space Alliance's compliance with small business subcontracting goals on NASA contracts awarded to the contractor. During fiscal year (FY) 2009, United Space Alliance was awarded over $1.5 billion in contracts from NASA.
Tuesday's suit is the third lawsuit filed by the ASBL against NASA. In February of 2007, the ASBL prevailed in its first suit against NASA, forcing the agency to provide detailed information proving that it falsified its small business contracting statistics by including contracts to a variety of Fortune 500 firms and other large businesses.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and other clearly large businesses. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
"We believe that NASA is withholding data which shows that the agency is inflating the achievement of its congressionally mandated small business goals by including Fortune 500 corporations and other clearly large businesses. We also believe that NASA is withholding data that will prove that they are allowing major prime contractors to falsify compliance with congressionally mandated small business contracting goals," ASBL President Lloyd Chapman said. "It is disappointing to see that President Obama's promise of increased transparency was just another broken campaign promise." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
Friday, May 28, 2010
Obama Proposes Tax Cut for Mega Rich Venture Capitalist Contributors
President Barack Obama has proposed new legislation that will allow many of the nation's wealthiest venture capitalists to avoid paying billions of dollars in federal income tax. Under the new proposal some of President Obama's top campaign contributors in the venture capital industry will be exempt from capital gains tax.
I believe President Obama will also back legislation and policy that will attempt to change the longstanding federal definition of a small business as being "independently owned." President Obama will likely back legislation or policy that will change the federal definition of a small business to include firms owned by many of the nation's wealthiest venture capitalists.
If he is successful, billions of dollars a month in federal small business contracts will be diverted from legitimate small businesses, and into the hands of mega wealthy venture capitalists.
President Obama has maintained close ties to the National Venture Capital Association (NVCA) since his days in the Illinois State Legislature. Wealthy venture capitalists were major contributors to President Obama's campaign. In February of 2009, a story in the Venture Capital Journal titled, "Real Change: New President Gets VC," boasted about the close relationship between President Obama and the venture capital industry. (http://www.vcjnews.com/story.asp?storycode=46450)
President Obama's close ties and political debt to the venture capital industry were clearly demonstrated when he appointed New York venture capitalist, and Tootsie Roll heiress Karen Mills to head the Small Business Administration (SBA). He appointed another venture capitalist, Winslow Sargeant to head the Small Business Administration Office of Advocacy. Both Mills and Sargeant were major contributors and fund raisers during Obama's Presidential campaign.
In addition to millions of dollars in contributions to President Obama, the NVCA and its members have spent millions of dollars lobbying Congress. The vast majority of venture capital industry contributions have been focused on the House and Senate small business committees. A story in AllBusiness.com described House Small Business Committee Chair Nydia Velázquez as "quarterbacking" legislation for well-heeled venture capitalists. (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
In the past, the NVCA and its members have pushed for pro-venture capital loopholes under the guise of "increasing access to capital for small businesses." Nothing could be further from the truth. In reality, the true purpose of the NVCA political agenda is obviously to increase their access to billions of dollars in federal small business contracts and withdraw profits without paying taxes.
According to the U.S. Census Bureau and the Kauffman Foundation, small businesses employ over 50.2 percent of the private sector workforce, are responsible for more than 50 percent of GDP and create nearly all net new jobs. Legislation or policy that would divert federal small business funds away from American small businesses could have a significant negative impact on the national economy.
If President Obama truly wanted to increase access to capital for small businesses, he would not have allowed CIT, the nation's leading lender to small businesses and firms owned by women, minorities and veterans, to fail. If President Obama were sincere about helping small businesses, he would have kept his campaign promises to: implement the 5 percent set-aside goal for woman owned firms, restore the SBA's budget and staffing, restore the head of the SBA to a cabinet level position, and "end the diversion of federal small business contracts to corporate giants." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
President Obama has broken every campaign promise he made to America's 27 million small business owners. Instead he has continued to allow billions of dollars a month in federal small business funds to be diverted to corporate giants around the world. His administration has tried to cover up the diversion of federal small business contacts to corporate giants by destroying data in the Federal Procurement Data System such as the "small business flag" and the "parent DUNS number." The Obama Administration is refusing to release a wide variety of information that the public can use to monitor the actual recipients of federal small business contracts. They have also refused to release reports on prime contractor compliance with federal small business goals. President Obama even refused to accept the recommendation of his own small business advisory council to end the "Comprehensive Subcontracting Plan Test Program." This program allows prime contractors to ignore federally mandated small business goals and avoid any penalties for noncompliance.
As I have said many times, the media and the American people need to quit listening to President Obama's well written and insincere speeches, and look at what he is actually doing. When you do, it becomes clear that President Barack Obama is no friend to the 27 million small businesses where most American's work. Quite the contrary, his administration has adopted numerous policies that are clearly anti-small business.
I predict that President Obama will continue to pursue legislation and policy that will allow his wealthy contributors in the venture capital industry to hijack billions of dollars in federal small business contracts and avoid paying taxes on their ill gotten gains.
I believe President Obama will also back legislation and policy that will attempt to change the longstanding federal definition of a small business as being "independently owned." President Obama will likely back legislation or policy that will change the federal definition of a small business to include firms owned by many of the nation's wealthiest venture capitalists.
If he is successful, billions of dollars a month in federal small business contracts will be diverted from legitimate small businesses, and into the hands of mega wealthy venture capitalists.
President Obama has maintained close ties to the National Venture Capital Association (NVCA) since his days in the Illinois State Legislature. Wealthy venture capitalists were major contributors to President Obama's campaign. In February of 2009, a story in the Venture Capital Journal titled, "Real Change: New President Gets VC," boasted about the close relationship between President Obama and the venture capital industry. (http://www.vcjnews.com/story.asp?storycode=46450)
President Obama's close ties and political debt to the venture capital industry were clearly demonstrated when he appointed New York venture capitalist, and Tootsie Roll heiress Karen Mills to head the Small Business Administration (SBA). He appointed another venture capitalist, Winslow Sargeant to head the Small Business Administration Office of Advocacy. Both Mills and Sargeant were major contributors and fund raisers during Obama's Presidential campaign.
In addition to millions of dollars in contributions to President Obama, the NVCA and its members have spent millions of dollars lobbying Congress. The vast majority of venture capital industry contributions have been focused on the House and Senate small business committees. A story in AllBusiness.com described House Small Business Committee Chair Nydia Velázquez as "quarterbacking" legislation for well-heeled venture capitalists. (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
In the past, the NVCA and its members have pushed for pro-venture capital loopholes under the guise of "increasing access to capital for small businesses." Nothing could be further from the truth. In reality, the true purpose of the NVCA political agenda is obviously to increase their access to billions of dollars in federal small business contracts and withdraw profits without paying taxes.
According to the U.S. Census Bureau and the Kauffman Foundation, small businesses employ over 50.2 percent of the private sector workforce, are responsible for more than 50 percent of GDP and create nearly all net new jobs. Legislation or policy that would divert federal small business funds away from American small businesses could have a significant negative impact on the national economy.
If President Obama truly wanted to increase access to capital for small businesses, he would not have allowed CIT, the nation's leading lender to small businesses and firms owned by women, minorities and veterans, to fail. If President Obama were sincere about helping small businesses, he would have kept his campaign promises to: implement the 5 percent set-aside goal for woman owned firms, restore the SBA's budget and staffing, restore the head of the SBA to a cabinet level position, and "end the diversion of federal small business contracts to corporate giants." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
President Obama has broken every campaign promise he made to America's 27 million small business owners. Instead he has continued to allow billions of dollars a month in federal small business funds to be diverted to corporate giants around the world. His administration has tried to cover up the diversion of federal small business contacts to corporate giants by destroying data in the Federal Procurement Data System such as the "small business flag" and the "parent DUNS number." The Obama Administration is refusing to release a wide variety of information that the public can use to monitor the actual recipients of federal small business contracts. They have also refused to release reports on prime contractor compliance with federal small business goals. President Obama even refused to accept the recommendation of his own small business advisory council to end the "Comprehensive Subcontracting Plan Test Program." This program allows prime contractors to ignore federally mandated small business goals and avoid any penalties for noncompliance.
As I have said many times, the media and the American people need to quit listening to President Obama's well written and insincere speeches, and look at what he is actually doing. When you do, it becomes clear that President Barack Obama is no friend to the 27 million small businesses where most American's work. Quite the contrary, his administration has adopted numerous policies that are clearly anti-small business.
I predict that President Obama will continue to pursue legislation and policy that will allow his wealthy contributors in the venture capital industry to hijack billions of dollars in federal small business contracts and avoid paying taxes on their ill gotten gains.
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