FOR IMMEDIATE RELEASE
January 25, 2011
Petaluma, Calif. – Tonight, President Barack Obama will deliver his second State of the Union address to the American people. The American Small Business League (ASBL) is predicting that President Obama will rely on the same tired rhetoric regarding economic stimulus, while continuing to ignore the diversion of federal small business contracts to corporate giants.
Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to some of the largest businesses in the world. In Report 5-15, the Small Business Administration Office of Inspector General referred to the abuse 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)
Recently, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. According to government data, recipients of federal small business contracts included: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
Based on its research and the federal government’s own small business contracting data, the ASBL has estimated that every year more than $100 billion in federal small business contracts are diverted to Fortune 500 firms and other large businesses. As a result of these abuses, the ASBL maintains that the federal government is achieving less than 5 percent of its congressionally mandated 23 percent small business-contracting goal.
In April of 2010, Senate Small Business Committee Chair Mary Landrieu (D – LA) estimated that increasing federal contracts to small businesses by just 1 percent would create more than 100,000 new jobs. Based on this estimate, ending the flow of federal small business contracts to corporate giants could create more than 1.8 million new jobs. (www.smallbusinessmajority.org/_docs/resources/SBC_Jobs_Package.pdf)
“The American people need to quit buying into President Obama’s well written speeches, and start paying attention to his actions,” ASBL President Lloyd Chapman said. “Our economy is being threatened, and yet President Obama has repeatedly refused to address this job killing contracting scandal. You cannot create jobs with rhetoric, but you can supercharge job creation by ending the diversion of federal small business contracts to corporate giants.”
In addition to failing to stop the diversion of federal small business contracts to corporate giants, President Obama has ignored a series of campaign promises including: full restoration the SBA’s budget and staffing to pre-Bush Administration levels, and restoration of cabinet-level status of the SBA Administrator.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, January 25, 2011
Tuesday, January 18, 2011
Supreme Court May Hear Case on SBA Phone Records
The American Small Business League (ASBL) has filed a petition to the Supreme Court of the United States challenging a 9th Circuit Court ruling which may allow federal agencies to withhold agency phone records requested under the Freedom of Information Act (FOIA). (http://www.asbl.com/documents/20110114_ASBL_SCOTUS_Petion.pdf)
The ASBL originally filed suit against the U.S. Small Business Administration (SBA) after the agency refused to provide several years of telephone records for the agency’s press office director, Mike Stamler. (http://www.asbl.com/documents/20090312complaint.pdf)
The ASBL requested Stamler's phone records under FOIA after a number of journalists complained that Stamler attempted to defame ASBL President Lloyd Chapman, and deny the existence of the diversion of federal small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered billions of dollars a month in federal small business contracts actually going to Fortune 500 firms and other large businesses.
In Report 5-15, the SBA Office of Inspector General (SBA IG) described the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today,” and in Report 5-16, the SBA IG found large businesses had received small business contracts illegally by making “false certifications,” and “improper certifications.” (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/05-16.pdf)
Throughout the course of litigation, the SBA has claimed that it does not have access to its own phone records, and as a result has maintained that it is not required to supply that information under FOIA. Yet during 2010, the ASBL requested and received full and comprehensive telephone records from federal agencies like the U.S. Department of Interior (DOI) and the Social Security Administration (SSA).
The SBA has a clear track record of withholding requested documents that may shine a light on efforts to cover-up the yearly diversion of billions of dollars in federal small business contracts to corporate giants. In February of 2008, the ASBL sued the SBA for refusing to release the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. In the court’s ruling, United States District Judge Marilyn H. Patel stated, “The court finds it curious the SBA’s argument that it does not ‘control’ the very information it needs to carry out its duties and functions.”
“It is blatant and obvious that the SBA is covering up these abuses. They act like they are trying to solve the problem, and yet it is clear that the SBA is directly involved with perpetrating all of these abuses on small businesses,” ASBL President Lloyd Chapman said. “Other agencies have provided the requested information, yet the SBA continues to hide behind its excuses.”
The ASBL originally filed suit against the U.S. Small Business Administration (SBA) after the agency refused to provide several years of telephone records for the agency’s press office director, Mike Stamler. (http://www.asbl.com/documents/20090312complaint.pdf)
The ASBL requested Stamler's phone records under FOIA after a number of journalists complained that Stamler attempted to defame ASBL President Lloyd Chapman, and deny the existence of the diversion of federal small business contracts to corporate giants.
Since 2003, a series of federal investigations have uncovered billions of dollars a month in federal small business contracts actually going to Fortune 500 firms and other large businesses.
In Report 5-15, the SBA Office of Inspector General (SBA IG) described the issue as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today,” and in Report 5-16, the SBA IG found large businesses had received small business contracts illegally by making “false certifications,” and “improper certifications.” (http://www.asbl.com/documents/05-15.pdf, http://www.asbl.com/documents/05-16.pdf)
Throughout the course of litigation, the SBA has claimed that it does not have access to its own phone records, and as a result has maintained that it is not required to supply that information under FOIA. Yet during 2010, the ASBL requested and received full and comprehensive telephone records from federal agencies like the U.S. Department of Interior (DOI) and the Social Security Administration (SSA).
The SBA has a clear track record of withholding requested documents that may shine a light on efforts to cover-up the yearly diversion of billions of dollars in federal small business contracts to corporate giants. In February of 2008, the ASBL sued the SBA for refusing to release the names of Fortune 500 firms and other large businesses that had received billions of dollars in federal small business contracts. In the court’s ruling, United States District Judge Marilyn H. Patel stated, “The court finds it curious the SBA’s argument that it does not ‘control’ the very information it needs to carry out its duties and functions.”
“It is blatant and obvious that the SBA is covering up these abuses. They act like they are trying to solve the problem, and yet it is clear that the SBA is directly involved with perpetrating all of these abuses on small businesses,” ASBL President Lloyd Chapman said. “Other agencies have provided the requested information, yet the SBA continues to hide behind its excuses.”
Thursday, January 13, 2011
FDIC Forum Ignores #1 Challenge for Small Businesses
On Thursday, January 13, the Federal Deposit Insurance Corporation (FDIC) will host an Obama Administration forum on “Overcoming Obstacles to Small Business Lending.” The American Small Business League (ASBL) believes the event will fail to address the #1 job killing issue facing small businesses, the diversion of small business contracts to corporate giants.
For the last five consecutive years, the Small Business Administration (SBA) Office of Inspector General has named the issue as the agency’s #1 challenge. (http://www.asbl.com/documents/05-15.pdf) The ASBL has estimated that every year more than $100 billion in federal small business contracts are diverted to some of the largest corporations on earth.
In February of 2008, President Barack Obama promised to end the abuse. Despite, thousands of business closures and countless lost jobs, the Obama Administration has failed to honor its promise, and 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 most recent information released by the Obama Administration shows large recipients of small business contracts such as Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
In addition to the concerns about billions of dollars in federal contracting abuse, the ASBL does not believe the Obama Administration’s forum on lending is likely to create new jobs or stimulate the economy. The National Federation of Independent Businesses (NFIB) and the Congressional Oversight Panel have separately concluded that small businesses are in desperate need of demand, not loans. (http://www.nfib.com/Portals/0/PDF/sbet/SBET201006.pdf; http://www.huffingtonpost.com/2010/05/13/federal-oversight-panel-s_n_574781.html)
In December of 2009, the Obama Administration held its first forum on obstacles to small business lending. At the time, U-6 unemployment was 17.1 percent, according to the U.S. Bureau of Labor Statistics. More than a year later, U-6 unemployment has remained near 17 percent.
(http://www.bls.gov/news.release/empsit.t15.htm)
“We’ve spent trillions of dollars and focused small business assistance on lending, yet unemployment remains unreasonably high. Let’s just try something crazy like not giving federal small business contracts to some of the biggest companies in the world, and instead direct those dollars to the nation’s 27 million small businesses,” ASBL President Lloyd Chapman said. “Ending the diversion of small business contracts to corporate giants would put more money into the middle class economy, and create more jobs, than anything the Obama Administration has proposed to date.”
For the last five consecutive years, the Small Business Administration (SBA) Office of Inspector General has named the issue as the agency’s #1 challenge. (http://www.asbl.com/documents/05-15.pdf) The ASBL has estimated that every year more than $100 billion in federal small business contracts are diverted to some of the largest corporations on earth.
In February of 2008, President Barack Obama promised to end the abuse. Despite, thousands of business closures and countless lost jobs, the Obama Administration has failed to honor its promise, and 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 most recent information released by the Obama Administration shows large recipients of small business contracts such as Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)
In addition to the concerns about billions of dollars in federal contracting abuse, the ASBL does not believe the Obama Administration’s forum on lending is likely to create new jobs or stimulate the economy. The National Federation of Independent Businesses (NFIB) and the Congressional Oversight Panel have separately concluded that small businesses are in desperate need of demand, not loans. (http://www.nfib.com/Portals/0/PDF/sbet/SBET201006.pdf; http://www.huffingtonpost.com/2010/05/13/federal-oversight-panel-s_n_574781.html)
In December of 2009, the Obama Administration held its first forum on obstacles to small business lending. At the time, U-6 unemployment was 17.1 percent, according to the U.S. Bureau of Labor Statistics. More than a year later, U-6 unemployment has remained near 17 percent.
(http://www.bls.gov/news.release/empsit.t15.htm)
“We’ve spent trillions of dollars and focused small business assistance on lending, yet unemployment remains unreasonably high. Let’s just try something crazy like not giving federal small business contracts to some of the biggest companies in the world, and instead direct those dollars to the nation’s 27 million small businesses,” ASBL President Lloyd Chapman said. “Ending the diversion of small business contracts to corporate giants would put more money into the middle class economy, and create more jobs, than anything the Obama Administration has proposed to date.”
Monday, December 6, 2010
Thursday, December 2, 2010
Monday, November 29, 2010
SBA Loses Legal Battle Over Crisis Management PR Contract
FOR IMMEDIATE RELEASE
November 29, 2010
Petaluma, Calif. – The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.
In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants. In Report 5-15, the SBA’s own Office of Inspector General (IG) referred to the issue 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)
In Report 5-16 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.” Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as “vendor deception.”
In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations has been the result of harmless "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
November 29, 2010
Petaluma, Calif. – The Small Business Administration (SBA) has lost another Freedom of Information Act lawsuit filed by the American Small Business League (ASBL). The ASBL filed suit after the SBA refused to turn over information on potentially damaging public relations contracts awarded by the agency to APCO Worldwide Inc., an international public relations firm specializing in crisis management.
The ASBL suspects the SBA has spent American tax dollars to hire consultants to help obscure the SBA's role in diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses around the world. The ASBL believes the SBA may have launched a massive campaign to cover-up the diversion of federal small business contracts to large businesses, and to discourage the media from covering the issue.
In one case, the SBA paid $30,000 for a one-day meeting with APCO executives. In winning the lawsuit, the ASBL has now forced the SBA to turn over complete copies of those contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts are going to corporate giants. In Report 5-15, the SBA’s own Office of Inspector General (IG) referred to the issue 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)
In Report 5-16 from March of 2005, the SBA IG reported that large businesses had committed fraud by misrepresenting themselves as small businesses through “false certifications,” and “improper certifications.” Another investigation from the SBA Office of Advocacy found large businesses had received federal small business contracts fraudulently through what they referred to as “vendor deception.”
In recent years, the SBA has claimed the diversion of federal small business contracts to large corporations has been the result of harmless "miscoding." In May of 2007, the SBA even went as far as to claim that it was a "myth" that large corporations received federal small business contracts. (http://www.asbl.com/documents/sbamythvfact.pdf)
“We are going to continue to sue the SBA to force the release of information that shows they have encouraged and protected firms that have committed felony contracting fraud,” ASBL President Lloyd Chapman said. “The proposal to combine the SBA with the Commerce Department is just the latest attempt by the government to cover up billions of dollars in abuse, while trying to further dismantle federal small business contracting programs.”
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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