08/23/2013 06:35 pm ET Updated Oct 23, 2013

Obama's Plan to Close the SBA Will Sink the Economy and His Approval Rating

A recent survey by Gallup found President Obama's approval rating on handling the economy has dropped to just 35 percent. If President Obama continues with his plan to close the Small Business Administration (SBA) he could see his approval ratings drop to a record low and devastate the Democratic Party's success in the upcoming elections.

Numerous polls and surveys have all shown the number one issue on the minds of American voters is the faltering middle class economy and high unemployment.

With such a high percentage of voters expressing concern over the economy, you would think that President Obama would be working overtime to address those concerns. His plan to close the SBA will devastate the middle class economy and cost America millions of jobs.

Based on the latest data from the U.S. Census Bureau, America's 28 million small businesses are responsible for over 90 percent of the net new jobs, over 50 percent of the private sector work force, over 50 percent of the GDP and over 90 percent of U.S. exporters are small businesses.

The one and only agency in Washington to assist the 28 million American small businesses is the SBA. The agency is charged with managing the single largest economic stimulus program in U.S. history to assist small businesses. That program, established under the original Small Business Act, stipulates that a minimum of 23 percent of the total value of all federal contracts and subcontracts shall be awarded to small businesses.

What better way to invest 23 percent of federal infrastructure spending than to spend it with the small businesses that create over 90 percent of net new jobs?

Every year of the Obama administration, the SBA Inspector General, Peg Gustafson, who was appointed by President Obama, has named the diversion of federal small business contracts to corporate giants as the number one and most rampant problem at the SBA. Neither President Obama nor SBA Administrator Karen Mills have taken any action to address the rampant fraud and abuse in the program.

President Obama was clearly aware of the widespread fraud in the SBA managed programs during his campaign when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants."

Since President Obama has taken office not only has he not taken any action to address the persistent fraud and abuse in federal small business contracting, it has actually become worse. The latest data from the Federal Procurement Data System indicates, of the top 100 recipients of federal small business contracts for last year, 71 are large businesses.

Some of the firms the Obama administration has diverted federal small business contracts to include Lockheed Martin, Boeing, Raytheon, Dell, IBM, Hewlett-Packard, Oracle, British Aerospace, Rolls Royce, Finmeccanica in Italy and Rosoboronexport in Russia. In fiscal year 2012 alone, General Dynamics received over $215 million in federal small business contracts.

The diversion of billions of dollars in federal small business contracts to many of the largest corporate giants in the world has been covered by NBC, CBS, ABC, CNN and many of the largest newspapers in the nation such as the Washington Post and the New York Times.

After investigating the SBA, the Office of Government Accountability released Report 10-108 that stated, "By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud."

President Obama has refused to back legislation such as H.R. 1622, "The Fairness and Transparency in Contracting Act" that would completely end the diversion of federal small business contracts to large businesses and redirect up to $100 billion a year in existing federal infrastructure spending to middle class small businesses.

To add insult to injury, President Obama has announced plans to essentially close the SBA. Closing the SBA would mean the end of all federal programs to assist disabled veteran-owned firms, minority-owned firms, woman-owned firms and all other small business programs.

The latest indication that President Obama does plan on closing the only agency in Washington to assist the nations top job creators is his refusal to name a successor for outgoing SBA Administrator Karen Mills. Mills resigned over six months ago and will be leaving the agency at the end of August.

President Obama's refusal to appoint a successor to Mills would seem to be a clear indication he is not hearing the concerns voters have for the economy and jobs. With small businesses being responsible for over 90 percent of net new jobs, the SBA is clearly one of the most important agencies in government when it comes to stimulating the economy and creating jobs.

It remains to be seen if Congress will go along with Obama's plan to close the SBA and bring an end to one of the nation's oldest, most effective and efficient economic stimulus and job creation programs.

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