Petaluma, Calif. – As America slides deeper and deeper into recession, 27 million small business owners want President Barack Obama to answer one question at his press conference Tuesday.

Why are you allowing Fortune 500 firms to participate in government economic stimulus contracting programs designated for small businesses?

Since 2003, over a dozen federal investigations have been release, which found billions of dollars in federal small business contracts have been diverted to Fortune 500 firms and thousands of other large businesses around the world.

A recent investigative story by the Washington Post found up to 38.5 percent of all federal small business contracts were actually going to Fortune 500 firms alone.

In June of 2008, the Department of the Interior (DOI) Office of Inspector General found that agency had diverted millions of dollars in small business contracts to Fortune 500 firms such as Dell, GTSI, Home Depot, John Deere, McGraw-Hill, Ricoh, Sherwin Williams, Starwood Hotels, Waste Management Incorporated, Weyerhaeuser, World Wide Technology and Xerox Corporation. (http://www.doioig.gov/upload/2008-G-0024.pdf) 

The Small Business Administration (SBA) Office of Inspector General referred to the problem as, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal Government today..." (http://www.sba.gov/IG/05-15.pdf) 

In February of 2008, President Obama recognized the dramatic negative impact abuses in federal small business contracting programs were having on American small businesses 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) 

To date, President Obama has not followed through on his campaign promise to America’s small businesses by ending the diversion of federal small business contracts to corporate giants.

The American Small Business League (ASBL) estimates over $100 billion a year in economic stimulus contracts earmarked for small businesses are diverted to Fortune 500 firms and other large businesses.

"President Obama doesn't seem to understand that 98 percent of all U.S. firms have less than 100 employees and those firms are responsible for 97 percent of all new jobs in America," ASBL President Lloyd Chapman said. "If President Obama would make good on his campaign promise, and end the diversion of federal small business contracts to large businesses it would re-direct over $100 billion a year in existing federal infrastructure spending directly to small firms, create more jobs and stimulate the economy more than anything else he has proposed so far. Someone in the White House Press Corps needs to ask President Obama why he is allowing Fortune 500 firms to participate in federal economic stimulus programs for small businesses."

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Petaluma, Calif. - In March of 2005 the Small Business Administration Office of Inspector General released Report 5-15. The report stated, "One of the biggest challenges facing the Small Business Administration and the entire federal government today is that large businesses are receiving federal small business procurement awards and agencies are receiving credit for these awards." (http://www.sba.gov/IG/05-15.pdf)

To date, not one word of President Obama's small business rescue plan, his small business stimulus plan or his most recent small business credit plan to save small businesses even mentions this critical issue.

Every major newspaper in the country and numerous television networks such as ABC, CBS and CNN have released investigative stories on the diversion of federal small business contracts to corporate giants.  (ABC, https://www.asbl.com/abc_evening_news.wmv; CBS, https://www.asbl.com/cbs.wmv; CNN, https://www.asbl.com/showmedia.php?id=1170)

Since 2003 over fifteen federal investigations have been released that found widespread fraud, abuse, loopholes and a blatant lack of proper oversight in federal small business contracting programs. The investigations found that hundreds of billions of dollars in federal small business contracts were diverted to Fortune 500 firms and thousands of other large businesses. (https://www.asbl.com/documentlibrary.html)

Based on information from the federal investigations, the American Small Business League estimates over $100 billion every year in federal small business contracts are diverted to many of the largest companies in the world. President Obama has consistently refused to offer any legislation, ideas or policies to address this staggering problem for American small businesses.

President Obama seemed to recognize the massive negative impact the diversion of $100 billion a year in federal small business contracts was having on the middle class economy when he released his February 2008 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)

If President Obama were to issue an Executive Order or adopt government policy to stop the flow of federal small business contracts to "corporate giants" it would redirect over $100 billion a year back to America's 27 million small businesses. This would do more to stimulate the nation's economy and create jobs than any of his previous small business programs combined.

Small business owners and advocates are becoming impatient and disillusioned with President Obama's unexplained refusal to address one of the most significant and widely reported problems facing American small businesses today.

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Petaluma, Calif. – President Obama's latest small business stimulus plan disappointed many small business owners and advocates, as it did not contain any specific provisions to infuse stimulus funds and stimulus spending directly to small businesses.

So far, 100% of the $2.3 trillion in federal funds that will be spent in an attempt to stimulate the economy are destined for state governments and the top 1% of U.S. firms. None of the stimulus funds or spending has been specifically directed to America's 27 million small businesses.

Small business owners and advocates were hoping President Obama would use this latest small business stimulus plan to keep a campaign promise he made in February of 2008 when he said, "It is time to end the diversion of federal small business contracts to corporate giants."

President Obama's statement was in response to a series of federal investigations that found hundreds of billions of dollars in federal small business contracts had been diverted to Fortune 500 firms. Stories on the diversion of federal small business contracts to corporate giants have run in every major newspaper and have aired on ABC, CBS and CNN (ABC, https://www.asbl.com/abc_evening_news.wmv; CBS, https://www.asbl.com/cbs.wmv; CNN, https://www.asbl.com/showmedia.php?id=1170

The American Small Business League (ASBL) has won a series of Freedom of Information Act (FOIA) cases against the Small Business Administration that forced the release of information on the actual recipients of federal small business contracts. Based on that data, the ASBL estimates over $100 billion a year in federal small business contracts are being diverted to Fortune 500 firms and hundreds of other large businesses. (https://www.asbl.com/documentlibrary.html)

The ASBL believes if President Obama would adopt policy or legislation to stop the flow of federal small business contracts to corporate giants, this would do more to stimulate the economy and create jobs than any of the small business policies President Obama has offered so far.

After watching President Obama outline his latest small business plan on CNN, ASBL President Lloyd Chapman stated, "The tax cuts and increased SBA loan guarantees are certainly a step in the right direction. If President Obama is sincerely trying to help small businesses, it is difficult to understand why he has consistently refused to adopt policies to stop over $400 million dollars a day in federal small business contracts from being diverted to Fortune 500 firms and thousands of large businesses. It just doesn't make sense."

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Petaluma, Calif. – The Small Business Administration (SBA) is being sued by the American Small Business League (ASBL) in United States District Court, Northern District of California for refusing to release the telephone records of SBA Press Office Director Mike Stamler.  The ASBL requested Mr. Stamler's phone records under the Freedom of Information Act (FOIA).  The ASBL believes Mr. Stamler engaged in an aggressive campaign to mislead the media and damage the organization's reputation.

The ASBL has won a series of federal lawsuits against the SBA, which forced the disclosure of information showing that the SBA had fabricated federal small business contracting data and covered-up the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 companies and other large businesses.

The ASBL expects to file an additional lawsuit against the SBA for refusing to release all of Mr. Stamler's emails for the years 2006 and 2007.  The ASBL began requesting Mr. Stamler's communications after several journalists informed the organization that Mr. Stamler had libeled and slandered the ASBL and its President Lloyd Chapman, and embarked on an aggressive campaign to impugn the organization’s credibility with members of the media.

In one such example, after the Long Island Business News (LIBN) quoted ASBL President Lloyd Chapman in a story, the LIBN reporter received a profanity-riddled email from Mr. Stamler.  In response, the LIBN reporter published a blog titled, "Expletives the SBA's Forte?" (http://libn.com/libizblog/2008/02/22/expletives-the-sbas-forte/) 

The ASBL intends to continue gathering information on Mr. Stamler's campaign to libel and slander the organization and its President Lloyd Chapman in preparation for another lawsuit to be filed against the SBA for defamation of character.

The SBA's own Inspector General has released several investigations that found blatant fraud and abuses in SBA administered small business contracting programs. (http://www.sba.gov/IG/05-15.pdf) 

In the past, the SBA responded to federal investigations and news stories, which found billions of dollars in small business contracts had gone to Fortune 500 corporations with a series of press releases claiming that the diversion of federal small business contracts to large corporations was a myth. (www.asbl.com/documents/sbamythvfact.pdf) 

"There is no question that Mike Stamler and the SBA have tried to cover up the diversion of small business contracts to Fortune 500 corporations," ASBL President Lloyd Chapman said. "Based upon the information we have obtained so far, it's obvious that they have launched a massive campaign to attack our organization and impugn our credibility as we continue to expose the rampant fraud and abuse that has gone unchecked since 2002."

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