THE BLOG
08/21/2013 08:09 am ET Updated Oct 21, 2013

Obama Wants to Close the SBA to Cover Up Fraud, Not Save Money

Small Business Administration (SBA) Administrator Karen Mills resigned over six months ago. Her last day is at the end of August. President Obama has not even mentioned a possible permanent replacement. Could it be that President Obama intends to try and close the only agency in Washington that assists the nation's 28 million small businesses?

I believe it's quite possible President Obama may try and close the SBA under the guise of combining it with the Department of Commerce. Why, you might ask. The answer, to cover up the widespread fraud and abuse at the SBA that has been uncovered in a series of federal investigations and media reports. NBC, CBS, ABC and CNN have all covered the story. Even the liberal, Pro-Obama Washington Post reported on the decade-long fraud and abuses at the SBA. The Washington Post prefers the word "errors" to downplay the blatant fraud and intentional abuses that have actually transpired.

Every year of his presidency, the Inspector General for the SBA has named the diversion of billions of dollars in federal small business contracts to many of the largest corporate giants in the world as the most rampant problem at the SBA. Their decade of lame excuses of miscoding, computer glitches, anomalies, errors, mistakes and simple human error defy all logic and reason and the laws of probability and statistics.

No journalist in a decade has ever asked any federal official to explain why these supposed "anomalies" always divert federal small business contracts to corporate giants and artificially inflate the true percentage of federal contracts awarded to legitimate small businesses.

Not only has Obama and SBA Administrator Karen Mills failed to take any action to stop the rampant abuse, under their leadership, it has actually gotten worst. The most recent data from the Federal Procurement Data System indicates, of the top 100 recipients of federal small business contracts, 71 are currently large businesses.

Ronald Reagan clearly stated he wanted to close the SBA and his plan was to close the agency by combining it with the Department of Commerce. Closing federal agencies under the guise of combining them with another agency is an old Washington trick.

I predicted President Obama would try and close the SBA by combining it with the Department of Commerce in November of 2008. In January of 2012, President Obama announced his plans to do just that. How did I know? Was it just a lucky guess?

Closing the SBA would be economic suicide for America. A recent poll by Gallup indicated the economy and debt were the top two issues voters were concerned about, followed closely by employment and jobs. According to the U.S. Census Bureau, more than 90 percent of net new jobs in America are created by small businesses. The single largest and most effective economic stimulus plan in America to help the nation's 28 million small businesses create jobs and boost the economy is the Small Business Act that requires a minimum of 23 percent of all federal contracts be awarded to small businesses. The SBA administers that program.

The corporate giants that have so much power in Washington have been pushing to close the SBA since Ronald Reagan was president. The reason they want the agency closed is pure and simple, greed. By combining the SBA with the Department of Commerce the 23 percent small business-contracting program will be slowly dismantled. Eventually, 100 percent of all federal contracts will go to the corporate giants that rule the roost in Washington and the Department of Commerce.

The oldest, most efficient and effective economic stimulus program is U.S. history will be quietly abolished and the devastation to the middle class economy and job creation will be significant and permanent. The economic damage to the U.S. middle class economy will be staggering.

If President Obama closes the SBA, he will likely face little to no resistance from Congress and the mainstream media because they are so heavily influenced by the corporate giants that want 100 percent of all federal contracts, regardless of the devastation it will cause to America's middle class economy and job creation.

Make no mistake, President Obama's desire to close the SBA will be to cover up the rampant fraud and abuse that has been so pervasive at the SBA every day of his administration and placate the corporate giants that he and every other politician in Congress work for.

Once again, the best government money can buy will have demonstrated their unchallenged power over our puppet democracy.

I'm very proud that whether win, lose or draw, at least Lloyd Chapman and the American Small Business League put up a fight to save the most efficient and effective economic stimulus program in U.S. history and the agency that administers it, while phony small business groups, Congress and the mainstream media quietly watched with no objection.

As Thomas Jefferson once said, "All tyranny needs to gain a foothold is for people of good conscious to remain silent." I do not intend to remain silent.

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