Small Businesses Want President Obama to Answer One Question, According to the American Small Business League

The American Small Business League (ASBL) posted the following press release this morning. In it the league asks President Obama a single question regarding the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations every year.

Small businesses are the backbone of our nation's economy. It is not reasonable to move forward with potential solutions to our economic crisis without stopping the diversion of up to $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe.

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Small Businesses Want President Obama to Answer One Question

Petaluma, Calif. - As America slides deeper and deeper into recession, 27 million small business owners want President Barack Obama to answer one question at his press conference Tuesday.

Why are you allowing Fortune 500 firms to participate in government economic stimulus contracting programs designated for small businesses?

Since 2003, over a dozen federal investigations have been release, which found billions of dollars in federal small business contracts have been diverted to Fortune 500 firms and thousands of other large businesses around the world.

A recent investigative story by the Washington Post found up to 38.5 percent of all federal small business contracts were actually going to Fortune 500 firms alone.

In June of 2008, the Department of the Interior (DOI) Office of Inspector General found that agency had diverted millions of dollars in small business contracts to Fortune 500 firms such as Dell, GTSI, Home Depot, John Deere, McGraw-Hill, Ricoh, Sherwin Williams, Starwood Hotels, Waste Management Incorporated, Weyerhaeuser, World Wide Technology and Xerox Corporation. (http://www.doioig.gov/upload/2008-G-0024.pdf)

The Small Business Administration (SBA) Office of Inspector General referred to the problem as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today..." (http://www.sba.gov/IG/05-15.pdf)

In February of 2008, President Obama recognized the dramatic negative impact abuses in federal small business contracting programs were having on American small businesses 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 not followed through on his campaign promise to America's small businesses by ending the diversion of federal small business contracts to corporate giants.

The American Small Business League (ASBL) estimates over $100 billion a year in economic stimulus contracts earmarked for small businesses are diverted to Fortune 500 firms and other large businesses.

"President Obama doesn't seem to understand that 98 percent of all U.S. firms have less than 100 employees and those firms are responsible for 97 percent of all new jobs in America," ASBL President Lloyd Chapman said. "If President Obama would make good on his campaign promise, and end the diversion of federal small business contracts to large businesses it would re-direct over $100 billion a year in existing federal infrastructure spending directly to small firms, create more jobs and stimulate the economy more than anything else he has proposed so far. Someone in the White House Press Corps needs to ask President Obama why he is allowing Fortune 500 firms to participate in federal economic stimulus programs for small businesses."

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Comments

[iridium53]

Obama shows no evidence of living up to campaign promises regarding small business.

In fact, he's raising taxes on small businesses - after all, he must pay for the bankers, that don't make the loans.

I've had to lay off 50 good, college-educated people - because the banks that are receiving hundreds of billions are unwilling ot make a loan on approved-invoice accounts receivables from Fortune 500 companies. Our Days Sales Outstanding is now out beyond 160. I couldn't finance the cash flow any more.

I like Obama for much of his promised policy. But, the thing that matters most to me is keep the business going and keeping the staff I worked so hard to get paid. Now 50 families are suffering.
But, the bankers got paid their multi-million dollar bonuses.

Obama is no friend of small business.

[Overtone]

SMALL BUSINESS CAN CREATE MILLIONS OF ADDITIONAL NEW JOBS!

Up to 6 million jobs and 4 million small businesses can be created by A Human Investment Tax Credit Program.

This was missing from the stimulus package.

One component, a jobs tax credit, became law for one year and generated more jobs in less time than any legislation in our history.

Two versions of the 2009 Report can be downloaded free at: aesopinstitute.org

The full Report contains a post Keynesian, functional, economic analysis.

The short version includes only what can be done, as well as an outline for Congress.

Please ask members of The House Ways and Means Committee to debate and launch this urgently needed Program without delay.