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.

- ### -

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."

- ### -

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."

-###-

Petaluma, Calif. - Since President Barack Obama signed the stimulus bill, the Dow has dropped to a 12-year low and unemployment has jumped to a 25-year high.  The most recent U.S. Census Bureau statistics could be the key to understanding why President Obama's economic stimulus bill hasn't worked so far and may never achieve its intended goal of creating millions of new jobs.

According to the most recent data, 98 percent of all U.S. firms have less than 100 employees. These firms are responsible for 98 percent of all new jobs in America and employ 50.2 percent of the private sector workforce. American small businesses are responsible for over 97 percent of all exported goods and generate the majority of innovations that come from the United States.

Not one dollar of the $2.3 trillion in economic stimulus funds will go to the 27 million small businesses where most Americans work. One hundred percent of the stimulus bill funds not destined for states, will go to the top 1 percent of U.S. firms. The firms in that top 1 percent have not created one net new job in America since 1977.  

In addition to ignoring small businesses, which are the nation's top job creators in the stimulus bill, President Obama has refused to stop rampant fraud and abuse in existing federal economic stimulus programs for small businesses. During the Bush Administration, a series of over a dozen federal investigations found hundreds of billions of dollars in federal small business contracts were diverted to Fortune 500 firms. Millions of small businesses were adversely affected and thousands of hardworking small businesses were forced to close their doors as a result of the fraud and abuse. (https://www.asbl.com/documentlibrary.html)

President Obama acknowledged the magnitude of the problems in government small business programs in February of 2008 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 refused to make good on his campaign promise, by proposing policies to stop the fraud and abuse that have crippled federal economic stimulus programs for small businesses.

Things could get even worse for the economy and small business under the Obama Administration. President Obama has confirmed he will raise taxes on small business owners, and he is expected to support new loopholes in federal contracting law that will divert billions more in federal small business contracts away from the middle class and into the hands of wealthy venture capitalists that contributed heavily to his campaign.