Small Business Administration Stalls Release of PR Executives E-mails

Press Release

Small Business Administration Stalls Release of PR Executives E-mails

SBA PR executive's e-mail shows evidence of an aggressive campaign to kill stories on contracting abuses.

April 22, 2008

Petaluma, Calif. - The Small Business Administration (SBA) is delaying the release of SBA Press Office Director, Mike Stamler's inbound and outbound e-mails from 2006 and 2007. The American Small Business League (ASBL) requested the information under the Freedom of Information Act (FOIA). 

The ASBL requested Stamler's e-mails after it discovered that Stamler had sent a number of aggressive and threatening e-mails to journalists and publications which ran stories on ASBL's efforts.  Specifically, the ASBL's effort to expose the diversion of federal small business contracts to Fortune 1000 firms. The ASBL has also received information from journalists that Stamler has made a number of libelous statements about the ASBL and its President, Lloyd Chapman.

The ASBL believes the SBA's decision to stall the release of Stamler's e-mails is an attempt to allow SBA attorneys more time to review Stamler's communications and scrub them of any damaging information.  The ASBL believes that Stamler's emails will indicate that the SBA has made a significant effort to pressure journalists into dropping stories on the diversion of federal small business contracts to major corporations.

"Mike Stamler has been browbeating, threatening and bullying journalists to drop this story for years," President of the ASBL, Lloyd Chapman said. "Our goal is to simply uncover the facts and expose the SBA's campaign to discredit the ASBL and to mislead Congress, the public and the media on this issue. SBA Administrator Steven Preston is obviously stalling the release of Stamler's e-mails so they can remove all the damaging information."

"Mr. Stamler wants to impugn my credibility with the media, but he knows that I have won every federal lawsuit I have filed against the Department of Defense (DOD), NASA (https://www.asbl.com/showmedia.php?id=223) and the SBA. He also knows that information I provided prompted the first General Accounting Office (GAO) investigation (http://www.gao.gov/new.items/d03704t.pdf ) and the first Congressional hearing into the diversion of government small business contracts to Fortune 1000 firms.  He knows I provided information to the SBA that resulted in the removal of 600 large businesses (http://www.washingtontechnology.com/print/17_22/20094-1.html) from the SBA's small business database. He also knows I worked with the SBA's Office of Inspector General and provided information that led to one firm being recommended for debarment and a second firm paying a $1 million fine for misrepresenting themselves as a small business," Chapman stated. (http://www.govexec.com/story_page.cfm?articleid=33735&ref=rellink

In one example, Stamler sent an e-mail to the Long Island Business Journal that was so aggressive and profane that it prompted LIBJ Staff Writer, Ambrose Clancy to write a piece on the paper's blog entitled, "Expletives the SBA's forte?" (http://libizblog.wordpress.com/2008/02/22/expletives-the-sbas-forte/)

In other cases, Stamler has threatened to remove publications that ran stories on the SBA's role in the diversion of federal small business contracts to large businesses from the SBA's media list.

Stamler has reportedly made hostile and aggressive calls to journalists, editors and publishers that were preparing to publish stories on the issue and tried to bully or pressure them into dropping the stories.

The ASBL is preparing to file suit against the SBA in the event that all of Stamler's 2006 and 2007 e-mails are not released promptly.

 

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Anti-Small Business Bill Backed By Venture Capitalist Lobby Moves Through House In Record Time

Press Release

Anti-Small Business Bill Backed By Venture Capitalist Lobby Moves Through House In Record Time

National Venture Capital Association pushes bill to give government small business dollars to wealthy investors.

April 22, 2008

Petaluma, Calif. - A bill that would give some of the nation's wealthiest investors billions of dollars in federal small business contracts is set to move through the House of Representatives in record time. Last week, Nydia M. Velázquez (D - NY) the Chair of the House Committee on Small Business, introduced H.R. 5819, the SBIR/STTR Reauthorization Act.

The bill went into mark-up and passed through the House Committee on Small Business on Thursday, April 17th.  According to the Weekly Leader, H.R. 5819 could be debated on the floor of the House as early as Wednesday of this week.  This is the second time in less than a year that Rep. Velázquez has proposed legislation that could devastate federal programs designed to assist small businesses.

Since becoming the Chair of the House Committee on Small Business, Velázquez has established a record of talking about preventing the diversion of federal small business contracts to large corporations, but not acting on it. During her tenure she has failed to introduce legislation to address the problem.  Last week, Velázquez shocked and disappointed small business owners across the country when she began pushing legislation that would allow some of the nation's wealthiest venture capital firms to compete for federal small business contracts.

"The American Small Business League and its members worked for months to help the democrats take over Congress. At the time we thought democrats were going to bring positive change for small businesses," President of the American Small Business League, Lloyd Chapman said.  "Our members and small businesses around the country are just stunned that Congresswoman Velázquez and her committee would pass legislation that will be so detrimental to small businesses. No matter what she says, the bottom line is that this bill is going to allow billionaires to take contracts away from legitimate small businesses in every state.  We are going to do everything we can to let the Speaker of the House Pelosi know that Velázquez is no friend to small business.  I want to see someone chairing the House Small Business Committee who is more concerned about promoting the interests of small businesses than in helping billionaire venture capitalists masquerade as small businesses."

In September of 2007, the House passed H.R. 3567, which contains a similar provision to H.R. 5819.  However, the bill failed to pass through the Senate when it received opposition from the ASBL, U.S. Small Business Administration, the White House, National Small Business Association and the U.S Chamber of Commerce.

The ASBL (www.asbl.com) encourages concerned citizens and small business owners to contact their congressional representatives and ask them to oppose changing the definition of a small business in the Small Business Act. Small businesses should remain "independently owned" and operated.

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House Committee Sells Out Small Business for Big Bucks From Billionaire Venture Capitalists

Press Release

House Committee Sells Out Small Business for Big Bucks From Billionaire Venture Capitalists

Billionaires to Get Federal Small Business Dollars with New Bill

April 21, 2008

Petaluma, Calif. – Members of the House Committee on Small Business are being accused of selling out America's 26 million small businesses in exchange for contributions from wealthy venture capitalists. During 2008, members of the House Committee on Small Business have been targeted with a slew of campaign contributions from the National Venture Capital Association (NVCA). According to Opensecrets.org, 13 members of the committee have received contributions from NVCA this year alone. Additionally, Rep. Velázquez has been the top committee recipient of funds from NVCA during 2008.
 
This is the second time in less than a year that a proposal has come out of the House Committee on Small Business that will divert billions of dollars in federal contracts earmarked for small business into the hands of the nation's wealthiest venture capitalists.
 
Last week, Nydia M. Velázquez (D - NY) the Chair of the House Committee on Small Business introduced H.R. 5819, the “SBIR/STTR Reauthorization Act.” If H.R 5819 is passed, the bill will create a loophole for venture capitalists, by amending the 55 year-old Small Business Act to eliminate the most basic safeguard in the law requiring that small businesses be "independently owned.” Under Velazquez's bill, a venture capital firm with billions of dollars in managed assets would be allowed to own up to 49.9 percent of a business and still qualify for government programs designed to assist small businesses. 
 
Opponents of the bill believe it would essentially repeal the Small Business Act and cost small businesses in every state billions of dollars in federal contracts.
 
During 2007, the House Committee on Small Business passed H.R. 3567, the "Small Business Investment Expansion Act of 2007." Title V of H.R. 3567 contains a nearly identical loophole to Title II of H.R. 5819. H.R. 3567 fizzled in the Senate after receiving opposition from the American Small Business League (ASBL), the Small Business Administration, the White House, the National Small Business Association and the U.S. Chamber of Commerce.
 
"The American people have had it with a government that is run by special interests that couldn't care less about the average working family. This is the worst example I have ever seen of members of Congress supporting legislation that is detrimental to their constituents in exchange for political contributions. Considering the pattern of the contributions by the National Venture Capital Association, this is clearly a prime example of special interests trying to buy legislation for financial gain," President of the ASBL, Lloyd Chapman said. 
 
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House Democrats Push Bill to Give Government Small Business Contracts to Billionaire Venture Capitalists

Press Release

House Democrats Push Bill to Give Government Small Business Contracts to Billionaire Venture Capitalists

April 16, 2008

Petaluma, Calif. – Congresswoman Nydia M. Velázquez (D - NY) is trying to push a bill through the House Committee on Small Business that could spell disaster for millions of small businesses across America. If this bill becomes law, small businesses will be forced to compete with firms controlled by the nation’s wealthiest venture capital firms. Legitimate small businesses could find themselves in head-to-head competition with billionaire venture capitalists for the more than $135 billion the federal government spends with small businesses every year.
 
The Small Business Innovation Research (SBIR) Program Re-authorization Act would amend the 55-year-old Small Business Act by changing the definition of a small business from “independently owned” to include companies owned up to 49.9 percent by venture capital firms.
 
This is the second time in the past 12 months that Representative Velázquez and the House Committee on Small Business has tried to pass legislation that could divert billions of dollars in government small business contracts to wealthy investors.
 
During 2007, the House of Representatives passed H.R 3567, which contained virtually identical legislative language to this new draft legislation. However, after the bill received opposition from the American Small Business League (ASBL), U.S. Small Business Administration, the White House, National Small Business Association and the U. S. Chamber of Commerce, H.R. 3567 fizzled in the Senate Committee on Small Business and Entrepreneurship.
 
Since 2006, Congresswoman Velázquez has appeared on CBS and CNN denouncing Bush Administration policy that allows Fortune 500 firms to receive federal contracts earmarked for small businesses. As chair of the House Committee on Small Business, Velázquez could have proposed legislation to stop the flow of government small business contracts to Fortune 500 firms. However, Velázquez has proposed no such legislation. Instead, she has proposed legislation that will make the situation even worse for small business owners by allowing multi-billion dollar venture capital firms to compete for federal small business contracts.
 
If the bill becomes law, it could force thousands of small businesses to close their doors and would pull billions of dollars away from the middle class economy.
 
Critics of the new bill view it as an attempt to reward wealthy venture capitalists that have been major supporters of the Democratic Party. The National Venture Capital Association has been among Congresswoman Velázquez's biggest campaign contributors.
 
The bill is expected to be fast tracked by House leaders to avoid scrutiny from small business advocates and media attention. The ASBL (www.asbl.com) encourages concerned citizens and small business owners to contact their congressional representatives and ask them to oppose changing the definition of a small business in the Small Business Act. Small businesses should remain “independently owned” and operated. 
 
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