Stimulus Bill Spending Shuts Out Small Business

Press Release

Stimulus Bill Spending Shuts Out Small Business

February 18, 2009

Petaluma, Calif. - President Barack Obama's stimulus bill offers $499 billion in new government spending. The bill contains no specific provisions to direct even one dollar of those funds to America's 26 million small businesses.

According to the most recent data from the U.S. Census Bureau, firms with less than 20 employees account for over 90 percent of all American businesses and are responsible for more than 97 percent of all new jobs. These small businesses also employ over 50 percent of all private sector workers. (https://www.asbl.com/documents/INKSBAReport.pdf) Inc.com and CNNMoney.com released stories on the findings. (http://www.inc.com/news/articles/200708/data.html, http://money.cnn.com/2008/07/30/smallbusiness/job_creation.fsb/index.htm

Since the purpose of the stimulus bill is job creation, small business owners and advocates are puzzled as to why the bill virtually ignores the very firms that create 97 percent of all new jobs.

In addition to being shut out of the new economic stimulus bill, federal investigations have uncovered that small businesses are not receiving the minimum 23 percent of federal contracts as required by existing federal law. 

According to a series of more than 15 federal investigations that have been released over the last seven years, the vast majority of contracts the Small Business Administration (SBA) reported as going to small businesses actually went to Fortune 500 firms and hundreds of other clearly large businesses around the world. (https://www.asbl.com/documentlibrary.html

As much as $100 billion a year in federal small business contracts have been diverted by the SBA and federal contracting officials to firms such as Xerox, Wal-Mart, Microsoft, Home Depot, Halliburton, Raytheon and General Dynamics.  Federal contracting officials have even diverted U.S. government small business contracts to some of Europe's largest corporate giants. Rolls-Royce and British Aerospace (BAE) have received hundreds of millions of dollars in government small business contracts along with French defense contractor Thales Communications and Dutch conglomerate Buhrmann NV, which is headquartered in Amsterdam with thousands of employees worldwide.

As early as February of 2008, President Obama recognized the damage diverting government small business contracts was having on the national economy 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) 

Since making that statement almost a year ago, President Obama has not proposed any policies to make good on his campaign promise. Without legislation to stop it, the middle class economy will continue to suffer, as over $400 million a day in government small business contracts continue to be diverted from American small businesses.

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Obama Fiddles While Small Businesses Fizzle

News

Obama Fiddles While Small Businesses Fizzle

By James Hirsen
Newsmax.com
February 17, 2009

It looks like Hollywood has a bad case of congressional Dem disease.

Doctors say the main symptom of the disease is an irrepressible urge to spend somebody else’s money.

An unsubstantiated source claims that Tinseltown libs are begging President Obama to put pressure on Congress to amend the stimulus bill and include the following:

# Transportation funds for Rolls-Royce hybrids so celebrities don’t have to endure Priuses;

# HHS money to establish an institute that instructs stars in proper phone-throwing techniques, camera-smashing skills and employee-berating expertise;

# Grant money to assist in creating new indulgent award shows and to research how to more effectively engage in self-adulation while feigning humility;

# Major bailout money for the series of anti-American box-office flops, and increased capital for left-wing schlocumentaries and enviro fairy tales;

# Tax write-offs for all cosmetic procedures, including neck reductions and butt enhancements, plus sizable stipends for bling, booze, and bail.

# Food stamp programs for champagne, caviar, grass-fed beef, lobster, white truffles, and Hoodia.

Speaking of the porkiest bill ever passed in America’s history, its authors claim that it was really designed to create jobs.

In their dreams, maybe.

According to the American Small Business League, 97 percent of all new jobs come from small businesses, i.e., those with fewer than 20 employees, so small businesses are the primary source of real job creation.

More than half of all Americans bring home a paycheck that results from working at a small business.

In its reach for pork and power, the Obama administration turned its back on a simple policy that could have helped create genuine employment.

The law, as set forth in the Small Business Act of 1953, requires a minimum of 23 percent of all federal contracts and sub-contracts be awarded to small businesses.

However, hundreds of billions of dollars in federal contracts, which by law should be going to American small businesses, have been diverted to larger firms, probably courtesy of one of the president’s supposed pet peeves: lobbyists.

In February 2008, then-candidate Obama released a statement saying: “Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants.”

As the saying goes, that was then, this is now.

The Obama administration is allowing legislation to languish that, if passed, could prevent federal contracts that are designated to keep America's nearly 27 million small businesses from being hijacked.

It could be that somebody in the White House is trying to cover up the president’s broken promise, because the BarackObama.com Web site has been altered and the phrase, “It is time to end the diversion of federal small business contracts to corporate giants,” has been vaporized.

It’s a whodunit that could even make a decent flick.

Somebody ought to put out an APB for the mainstream media.

James Hirsen, J.D., M.A. in media psychology, is a media analyst, teacher of mass media and entertainment law at Biola University, and professor at Trinity Law School. Visit: Newsmax TV Hollywood: http://www.youtube.com/user/NMHollywood.

Source:  http://www.newsmax.com/hirsen/Obama_Hollywood_stimulus/2009/02/17/182490.html

Small business group blasts stimulus spending

News

Small business group blasts stimulus spending

By Doug Caldwell
Central Valley Business Times
February 17, 2009

•  Says it shuts out small business

•  ‘Virtually ignores the very firms that create 97 percent of all new jobs’

The stimulus bill signed into law today by President Barack Obama offers $787 billion in new government spending but contains no specific provisions to direct even a dollar to America's 26 million small businesses, says the American Small Business League, a Petaluma-based advocacy group.

Since the purpose of the stimulus bill is job creation, the small business advocate says it is puzzled as to “why the bill virtually ignores the very firms that create 97 percent of all new jobs.”

“In addition to being shut out of the new economic stimulus bill, federal investigations have uncovered that small businesses are not receiving the minimum 23 percent of federal contracts as required by existing federal law,” ASBL says.

According to the most recent data from the U.S. Census Bureau, firms with fewer than 20 employees account for over 90 percent of all American businesses and are responsible for more than 97 percent of all new jobs, ASBL says. These small businesses also employ over 50 percent of all private sector workers.

To track how the money is spent, the White House has set up a website. Click on the link below to go to it.

Source:  http://www.centralvalleybusinesstimes.com/stories/001/?ID=11169

Feds To Appeal Ruling That Favors Small Business Group

News

Feds To Appeal Ruling That Favors Small Business Group

By Rob Kuznia
HispanicBusiness.com
February 17, 2009

The federal government is appealing a San Francisco District Court ruling compelling it to hand over documents to a small-business advocacy group that is accusing the feds of cheating small businesses out of billions of dollars worth of government contracts.

The advocacy group, called the American Small Business League, had requested documents under the Freedom of Information Act that would reveal the names of all the firms that received federal small-business contracts during 2005 and 2006.

The court ruled that the feds needed to comply. During the proceedings, the federal government tried to argue that it does not have any information on the actual recipients of federal small-business contracts.

U.S. District Judge Marilyn H. Patel rejected the government's argument.
"The court finds curious the (federal government's) argument that it does not 'control' the very information it needs to carry out its duties and functions," she wrote in her opinion.

The league believes billions of dollars in grants meant for small businesses have actually gone to large businesses such as Fortune 500 companies and their subsidiaries.

The 9th Circuit Court of Appeals will now hear the case. The Small Business Administration must file its appellate brief by March 20.