Politicians in Washington love to talk about how important small businesses are to our nation's economy. They use catch phrases like "small businesses are the heart and soul of America's economy."

They're right about that. According to the U.S. Census Bureau:

• 98 percent of all U.S. firms have fewer than 100 employees, 89 percent have fewer than 20 employees and the average U.S. firm has about nine employees.

• These 25 million small businesses employ more than half of all Americans and create more than 97 percent of the new jobs, more than 90 percent of the exports and more than 90 percent of the technical innovation in America.

The reality of our government's true commitment to America's small businesses becomes clear when you quit listening to what politicians say and watch what they actually do. A perfect example happened recently in the House of Representatives. The House just passed HR 3567, the Small Business Investment Expansion Act.

Members of the House backed by the National Venture Capital Association and investment groups that would benefit from the bill pushed the bill through the House, telling their colleagues it would increase access to capital for small business.

What the bill actually does is allow some of the nation's largest venture capital firms and financial institutions to gain access to billions in federal small-business contracts. Under the Investment Expansion bill, multibillion-dollar venture capital firms can own up to 49.9 percent of a small business and still qualify for federal small- business contracting programs. The bill is written loosely enough that billionaire investors can start a venture capital company, buy 49.9 percent of a small business and qualify for a piece of more than $80 billion a year in federal small-business contracts. The bill was designed as a colossal loophole for wealthy investors who make big campaign contributions. Multibillion-dollar venture companies will be able to masquerade as small businesses and dominate virtually every industry small businesses participate in.

Billions in federal small-business contracts would go to firms that would essentially be subsidiaries or divisions of big businesses. Thousands of legitimate small business would be forced out of business. Imagine a typical Denver small business selling office products, trying to compete for even the smallest government order, going head to head with a firm that is 49.9 percent owned by Donald Trump.

The U.S. Chamber of Commerce, the American Small Business League and major small business groups across America all opposed HR 3567.

To make matters even worse, in June the Bush administration adopted a Small Business Administration policy that will allow the nation's largest defense contractors to keep billions in federal small-business contracts. Originally, Bush officials claimed Fortune 500 firms received small-business contracts through "miscoding." The new policy allows firms like Lockheed, Boeing and General Dynamics to keep their miscoded contracts until the year 2012. More than $300 billion in small-business contracts will go to very big business.

So what can we do? Plenty. Get on line, get on the phone and contact your senators and your representatives in Congress. Call the White House. Call your local Chamber of Commerce. Call the Colorado Association of Commerce and Industry. Tell them you want big business out of small-business programs.

Legislation like HR 3567 will never see the light of day if more people would just send an e-mail or make a call. Do Colorado and America's 25 million small businesses a favor and get involved in your government.

Lloyd Chapman is the president and founder of the American Small Business League and a former small-business owner. For more information: asbl.com.

Copyright 2007, Rocky Mountain News. All Rights Reserved.

The late Barber Conable Jr., who served nine terms in the House of Representatives, once said that Congress "should drag its heels on the way to decision."

In fact, he said, that's how the Founding Fathers meant Congress to work. "They understood that if you move too quickly, our democracy will be less responsible to the majority," he explained.

His words came to mind last week, as House Small Business Committee Chairman Nydia Velázquez, D-N.Y., ramrodded a controversial bill through the House that would open up all Small Business Administration programs to firms substantially owned by venture capital companies.

It took all of 10 days for the bill to move from introduction to passage by the full House. If that's not a record, it has to be close to one. Whatever the merits of the bill, the speed at which it breezed though the legislative process is enough to raise eyebrows.

What's the hurry?

When it comes to the legislative process, there is such a thing as "too far, too fast," especially on an issue like this. The bill not only faces stiff opposition from a number of small business groups, but from the Small Business Administration as well. What's more, it will affect how the government awards billions of dollars in federal grants and contracts earmarked for small companies.

The measure, known as the Small Business Investment Expansion Act of 2007 (HR 3567) cleared the House last Friday (Sept. 28) by a 325 to 72 vote. It's doubtful that most members knew what they were voting on; they certainly had no time to hear from their constituents. I'm told that lawmakers were convinced to vote for the bill after one of its opponents, Rep. Steve Chabot, R-Ohio, introduced an amendment that was added to the bill on the House floor.

The amendment prohibits a business from being considered "small" if a venture capital firm owns more than 50 percent of the company, or if the VC firm's employees constitute a majority of the board of directors. The amendment is designed to preserve the intent of the Small Business Act, which states that a business must be "independently owned and operated" to qualify for government programs. But as loopholes go, it leaves a lot of room for venture capital firms to wiggle through.

For example, VC firms often form a consortium to invest in small firms. While no one VC firm may own a majority of the company, the consortium may own well over 50 percent of the company. Yet they would still meet the terms of the Chabot amendment.

Given the high stakes attached to the measure, supporters and their legislative proxies may have done themselves a disservice by rushing the bill through the House. At the bill's hearing, opponents outside of the SBA were not even represented. Fortunately, the measure now goes to the Senate for further consideration.

As lawmakers take up the bill in the Senate, they should pause for moment to remember Barber Conable, who was known for honesty and integrity. Once he was even named by his colleagues as the "most respected" member of Congress. No one likes an exasperating or exhaustive debate but as Conable would say, they "are frequently the handmaidens of legislative decision."

Let's hope Senate small business committee Chairman John Kerry, D-Mass., follows his example, and gives this measure the full consideration it deserves. The memory of Barber Conable, not to mention democracy, would be well served.