In November of 2008, I predicted President Obama would try and close the Small Business Administration (SBA) by combing it with the Department of Commerce. On January 14, 2012 he proposed exactly that.

He claims he wants to combine the SBA with the Department of Commerce to save $300 million a year. In comparison to the overall federal budget, $300 million is chump change. It's .004 percent of the current Pentagon budget.

The SBA is the only federal agency in our government to assist the 28 million small businesses that are responsible for over 90 percent of the net new jobs, over 50 percent of the private sector work force, over 50 percent of the GDP and over 90 percent of all U.S. exporters.

At the same time Obama is proposing to close the SBA to save a measly $300 million a year, he is also planning to spend over $7 billion of our hard-earned tax dollars to build power plants in Africa under a program called, "Power Africa." Does that make sense to you?

Obama's Power Africa plan would fund his $300 million SBA savings for 23 years and fund that agency's entire budget for a decade.

A recent poll by Gallup found the number one concern for voters was the economy followed by jobs. Since we know from the US Census Bureau data that small business are responsible for over 90 percent of net new jobs, does it make sense to you to close the SBA and spend $7 billion to build power plants in Africa?

So what's the real reason Obama wants to close the SBA? I'll tell you. Every year President Obama has been in office his administration has diverted billions of dollars in federal small business contracts to corporate giants around the world. NBC, CBS, ABC, CNN and the Washington Post have all covered the story.

The Inspector General for the SBA appointed by President Obama has named the diversion of federal small business contracts to corporate giants as the most rampant problem at the SBA.

The real reason Obama wants to close the SBA is to cover up the rampant fraud and abuse that has transpired every day of his administration.

Let me close with this, The Government Accountability Office investigated the SBA and released Report 10-108. It stated, "By failing to hold firms accountable the SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud."

So the real reason Obama wants to close the SBA is not to save a paltry $300 million year. It's to bury the fact his administration has cheated the middle class out of hundreds of billions of dollars.

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Small Business Administration (SBA) Administrator Karen Mills resigned more than six months ago and President Obama has not even mentioned her replacement. SBA Inspector General Peg Gustafson would be the most logical choice to replace the departing administrator.

Ever since Mills took the helm of the SBA, the agency has been plagued by rampant fraud and abuse in virtually every SBA administered program. Every year SBA Administrator, Karen Mills ran the agency, the SBA Office of Inspector General (SBA OIG) named the diversion of federal small business contracts to corporate giants as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” Mills has consistently refused to take any action to stop the rampant fraud that has dogged the agency.

In the “Spring 2013 Semi-Annual Report to Congress” SBA Inspector General Gustafson stated that there were fraudulent schemes affecting all SBA programs.

Not only has Mills failed to address the rampant fraud in SBA managed programs, the problems have become much worse under Mills’ mismanagement. According to the latest data from the Federal Procurement Data System, of the top 100 recipients of federal small business contracts, 71 are currently large businesses.

Some of the firms the Karen Mills mismanaged SBA included in their small business contracting data included, IBM, Honeywell, Dell, Raytheon, General Dynamics, Rolls Royce, British Aerospace, AT&T, Verizon and Oracle.

ABC, NBC, CBS and CNN have all released investigative reports on the diversion of federal small business contracts to corporate giants. On July 29, the Washington Post published a story that found, under Mills’ leadership, the SBA had shortchanged small businesses out of billions of dollars in federal contracts by diverting federal small business contracts to large businesses. They also found the SBA had intentionally inflated the percentage of awards to small businesses by under reporting the actual federal acquisition budget by over $100 billion dollars.

In 2009, the Government Accountability Office (GAO) investigated an SBA managed program under Mills’ leadership and released Report 10-108 that stated, “By failing to hold firms accountable the SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”

No individual in the country is more knowledgeable and qualified to clean up the wide spread fraud and abuse that transpired at the SBA under Karen Mills’ leadership than the very individual that has consistently uncovered and reported on the fraud and abuses, SBA Inspector General Peg Gustafson.

Under Peg Gustafson’s leadership the SBA could finally provide the guidance and assistance to American small businesses Congress intended.

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The Small Business Administration (SBA) is refusing to release the names of firms that received $89.9 billion in federal contracts reported as going to small businesses. On Tuesday, July 2 the SBA claimed the federal government had awarded 22.25 percent of all federal contracts to small businesses during fiscal year 2012.

Under the Freedom of Information Act (FOIA), the American Small Business League (ASBL) requested the names of all firms that had been included in the $89.9 billion the SBA claimed had been awarded to small businesses in fiscal 2012. The SBA has refused to provide the information. The ASBL has filed an appeal and will file suite against the SBA if the information is not released.

In 2008, the SBA lost a similar case filed by the ASBL for refusing to provide the specific names of firms that had received federal small business contracts for fiscal year 2006.

During that case the SBA surprised the court when they claimed they had no information on the specific names of firms that had received federal small business contracts.

Judge Patel stated, "The court finds curious the SBA's claim they do not have the very information they would need to carry out their mission."

Federal Judge Marilyn Patel ruled in favor of the ASBL and forced the SBA to provide the names of all the firms that had been included in the $77.7 billion in federal contracts the SBA had claimed were awarded to small businesses.

The information the SBA was forced to provide to the ASBL indicated the SBA had, in fact, diverted billions in federal small business contracts to Fortune 500 firms and hundreds of large businesses in the U.S. and Europe.

NBC, ABC, CBS and CNN and the Washington Post have all reported on the diversion of federal small business contracts to corporate giants.

For over a decade the SBA has claimed thousands of large businesses around the world have received federal small business contracts as a result of computer glitches, miscoding, simple human error and anomalies. The SBA has never been able to explain why the supposed random anomalies always divert federal small business contracts to large businesses and never the other way around.

After investigating the SBA, the Government Accountability Office (GAO) released Report 10-108 that stated, "By failing to hold firms accountable the SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud."

For the ASBL's latest video, click here.

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