Small Business Administration Refuses to Release Press Office Phone Records

Press Release

Small Business Administration Refuses to Release Press Office Phone Records

By Lloyd Chapman
American Small Business League
May 13, 2014

PETALUMA, CA--(Marketwired - May 13,2014) - According to the American Small Business League, Small BusinessAdministration (SBA) Press Office Director Terry Sutherland is refusing torelease the phone records of SBA Press Office Deputy Director Carol Wilkerson.

On April 11 of this year the AmericanSmall Business League (ASBL) requested under the Freedom of Information Actall of Carol Wilkerson's outbound phone records dating from March 1 throughApril 1, 2014. The purpose of the request was to test the SBA Press Office'sresponse for Freedom of Information Act requests for phone records. CarolWilkerson is listed as Deputy Director/Team Leader of the SBA Office of Communicationsand Public Liaison.

In his May 8, 2014 response to theASBL, Terry Sutherland claimed no phone records exist for Wilkerson and stated,"The records show no longdistance calls during that time period. Only outgoing long distance calls arerecorded and maintained in a file, local calls are not."

The ASBL requested Wilkerson's phonerecords to investigate possible illegal, unsanctioned or prohibited activitiesby the SBA Press Office.

In 2010, the SBA refused to release the phone records ofthen SBA Press Office Director Mike Stamler. The SBA fought the release of Stamler's phone recordsin U.S. District Court in San Francisco and the Ninth Circuit Court of Appeals.

The ASBL appealed the case to the U.S.Supreme Court. The SBA was preparing to fight to keep Stamler's phone recordshidden when the Supreme Court declined to hearthe case and Stamler's phone records remainedsecret.

The ASBL believes the extreme lengthsthe SBA has pursued to keep their Press Office phone records secret are a clearindication that they are engaging in unlawful activities and may be workingclosely with the Pentagon to kill stories on billions of dollars in federalsmall business contract awards to some of the nation's largest defense contractors.

The ASBL believes the appointment of Terry Sutherland, former Director of CorporateCommunications at the Pentagon Force Protection Agency,to head the SBA Press Officesignals the strong affiliation between the SBA and the Pentagon

A series of federal investigations and media reports have all found hundreds ofbillions of dollars in federal small business contracts that have been divertedfrom small businesses to Fortune 500 firms.

The ASBL plans to appeal the SBA'srefusal to release Wilkerson's phone records and will continue its Freedom ofInformation Act campaign in the courts to uncover phone records and emails fromthe SBA Press Office.

 


Meet 4 People Giving Small Businesses a Big Voice in Washington

News

Meet 4 People Giving Small Businesses a Big Voice in Washington

Small-business owners may have a hard time getting their views heard in our nation's capitol, but these 4 leaders are trying to change that.

By Kelly Spors
American Express Open Forum
May 13, 2014

May 13, 2014

Whenit comes to national politics, many small-business owners feel there's lack ofattention to ensure their unique concerns. While politicians love to talk upsmall businesses in their speeches, the policies enacted may not feel sosupportive.

Certainindividuals, however, are looking out for small businesses' interests andmaking sure those issues stay at the forefront of the national debate. It's notan easy job, though: Fortune 500 corporations can pay big money to lobbyists topush their interests, which aren't always aligned with the interests of smallercompanies. And even if they could pool financial resources, surveys continuallyshow that small-business owners are politically divided on everythingfrom raising theminimum wage to health-carereform.

Sowho's trying to help business owners get their needs met in Washington? As National Small Business Weekcommences, it's a good time to highlight some of the more ardentadvocates. This surely isn't a complete list, but here's a look at four peoplewho are trying to make a big difference for small businesses.

ToddMcCracken, President and CEO of the National Small Business Association

 

Todd McCracken, President and CEO of the National Small Business Association

 

ToddMcCracken has spent nearly 30 years lobbying for small businesses. He startedas a legislative assistant at the National Small Business Association(NSBA) in 1988 and became president of the organization in 1997.

McCrackensays his organization, which has about 65,000 members (each with an average of18 employees), prides itself on being nonpartisan, unlike otherpro-small-business groups that align closely with either Republicans orDemocrats. "We try to take a very unvarnished look at what the real issuesare," McCracken says, "and try to stay out of those issues that arebased purely on politics."

Toset its lobbying agenda, the NSBA goes beyond simply surveying its members. Tostart, all 32 NSBA board members are small-business owners, passionatelyconcerned about the issues that affect their organization's members. Inaddition, McCracken himself frequently flies across the country and holdsteleconferences to meet with small-business associations to hear firsthand whatissues they care about most. He also holds an annual event called the Small Business Congress, which is open to allNSBA members, to debate and vote on the organization's top priorities for theupcoming session of Congress.

McCrackensays the NSBA joins diverse groups of organizations to lobby on issues thataffect broad swaths of Americans—not just small businesses—whether that's taxreform or health-care reform. But it tries to take a lead on lobbying forissues that are more specific to small businesses. Recently, for example, theNSBA pushed Congress to reauthorize the Export-ImportBank of the United States (Ex-Im Bank) before its authorizationexpires on September 30. The Ex-Im Bank, a federal agency, provides financingto help businesses export and sell their products in foreign markets. Lastyear, the agency approved more than 3,400 small-business transactions, whichaccounted for nearly 90 percent of its total transactions. The NSBA is also abig advocate for legislation that allows the self-employed to deduct theirhealth insurance premiums, including legislation that was approved in 2010 (butonly for one year).

Oneof the challenges the NSBA faces is that politicians are always putting a"small business spin" on the issues—which makes it more difficult for smallbusinesses to get their actual viewpoints and key issues across. And setting asmall-business lobbying agenda is tricky, McCracken concedes, because smallbusinesses come in all different sizes and situations. A business owner withpatents, for example, probably supports laws that strengthen those patents,while a startup entrepreneur may support loosening patent laws in order topromote innovation.

Ashe says, "It's always a tricky balance for us," though it's a challenge theorganization and McCracken are always eager to take on.

MariaContreras-Sweet, Administrator of the U.S. Small Business Administration

 

Maria Contreras-Sweet became the 24th administrator of the Small Business Administration

 

Confirmedon March 27, MariaContreras-Sweet became the 24th administrator of the Small BusinessAdministration (SBA)—the federal agency created by the Eisenhoweradministration in 1953 to  "aid, counsel, assist and protect,insofar as is possible, the interests of small business concerns."

PastSBA administrators have had a wide variety of backgrounds and expertise when itcomes to helping and understanding the challenges faced by small businesses.(The most recent former administrator, Karen Mills, for example, was an experton entrepreneurial clusters and venture capital.) Contreras-Sweet hasexperience and expertise in the world of commercial and community banking. In2006, she founded ProAmérica Bank, a LosAngeles community bank that provides funding to the city's Latino entrepreneursand businesses.

Bornin Guadalajara, Mexico, Contreras-Sweet immigrated to Los Angeles when she was5 years old. She started her career working in public affairs forWestinghouse's 7-Up/RC Bottling division. She then became an equity partner inmanagement's leveraged buyout of the bottling company and later becameCalifornia's secretary of business, transportation and housing, a position sheheld from 1999 to 2003.

Manyhope that her varied background working for large and small businesses, as wellas government, will help Contreras-Sweet guide the SBA to better serve the manysmall-business owners who've struggled to find capital in recent years due tothe financial crisis, including many minority-owned businesses. SBA lendingsurged under Karen Mills, but it remains to be seen whether the SBA's loanprograms, such as the 7(a) program, will continue to flourish underContreras-Sweet.

Inher recent first meetingwith reporters since her confirmation, Contreras-Sweet suggested sheplans to seek ways to make the SBA more relevant in a technology-driven world,including trying out new programs that help small-business owners get loans andgrow their businesses. She wants to better publicize the services the SBA canoffer entrepreneurs, including minority and veteran entrepreneurs, as well asspeed up SBA disaster loan processing—which has come under scrutiny due to theslow processing after Hurricane Sandy.

"Mylament is that, when you come into government and you try to innovate andadvance, you are critiqued if it's not perfect in the first instance,"Contreras-Sweet says, according to The Washington Post, adding that theSBA must be "responsible with the assets we are assigned, but that needs to betempered with this idea of advancing and innovation."

Lloyd Chapman,President and Co-Founder of the American Small Business League

 Lloyd Chapman, President and Co-Founder of the American Small Business League

 

Dependingon whom you ask, Lloyd Chapman is either a crusader fighting for smallbusinesses or an outspoken and litigious leader. It's true that Chapman devotesmuch of his time to doing media interviews and writing columns criticizing theObama administration and federal agencies for missing their target of awarding 23 percent ofall contract dollars to small businesses. (Federal agencies havemissed that goal—albeit slightly—every year since 2005, according to TheWashington Post.) Moreover, Chapman's research of federal contractingdatabases shows that agencies divert more than $100 billion each year insmall-business contracts to Fortune 500 corporations.

Chapmanis well-known­­­­­­­­ for lobbing million-dollar lawsuits at the federalgovernment and defense contractors over the matter. He's filed dozens oflawsuits since forming his Petaluma, California-based lobbying organization,the American Small Business League (formerly called the Microcomputers IndustrySuppliers Association). Chapman first began his legal battles with thegovernment while working as a sales manager for a small computer company innorthern California.   According to Chapman, the GovernmentAccountability Office started investigating the diversion of 5,300 small-businesscontracts to large corporations only after he provided them research in theearly 2000s.

Chapmansays his dogged pursuit of the small-business contracting issue is helping themany small companies that want their fair share of federal contracts but can'tget them because federal agencies and big corporations are working together."I've won about 25 lawsuits over small-business contracting," Chapmansays. "That's a pro-small-business organization."

Hesays he's often shunned by other groups that claim to be small-businessadvocates but get their funding from Fortune 500 companies. "InWashington," he says, "you can't really make a living being asmall-business advocate, but you can become a millionaire helping Fortune 500corporations."

BarbaraKasoff, President and Co-Founder of Women Impacting Public Policy

Women-ownedbusinesses comprise about 29 percent of all U.S. businesses but,more bleakly, employ just 6 percent of the U.S. workforce and account for only4 percent of business revenues, according to a 2013 study commissioned byAmerican Express. Several organizations, including the Women Presidents' Organization(WPO), the National Association of WomenBusiness Owners (NAWBO) and the Women'sBusiness Enterprise National Council (WBENC), advise the federalgovernment on how to improve the climate for women-owned businesses as well asfight for key issues, such as allocating more federal contracting dollars towomen-owned firms and helping women get business loans.

BarbaraKasoff is among the leaders giving a voice to women and minority-ownedbusinesses in Washington. As founder of WomenImpacting Public Policy—or WIPP—Kasoff seeks to bring together thepublic and private sectors to find ways to enhance the economic power of women.

Kasoffran a voice-messaging company, VoiceTel, from 1990 to 2001 before creatingWIPP. Her San Francisco-based organization now has more than 1 million members,including those in 68 affiliated advocacy groups. Among WIPP's accomplishments:lobbying for the Women-OwnedSmall Business Federal Contract Program, an initiative passed byCongress in 2011 that requires the federal government to target at least 5percent of its contracting dollars, or $5 billion overall, to women-ownedbusinesses.

Kasoffis a believer and advocate that women business owners need to take charge oftheir own situation and band together. In a 2013 interview with TheAssociated Press, she said that WIPP will pushto get more women elected in Congress, which should help womenbusiness owners get more recognition among political leaders. She also wants tosee the federal contract targets for women-owned businesses raised above 5 percent,which she says is still way too low.

Butshe says that WIPP is also working to change the mindset of women businessowners to help them see the potential to grow their businesses into largecompanies rather than just remaining small businesses.

"Thereare way too many women who are self-employed and have no employees—88 percentof women business owners," Kasoff told AP. "We have to change that 'psychologyof small.' If you want to grow, you have to have the realization that it can'tbe just you (working in your company)."

Readmore articles on government.

Photos:Getty Images, Todd McCracken, Lloyd Chapman

To view fullarticle, click here: https://www.americanexpress.com/us/small-business/openforum/articles/meet-4-people-giving-small-businesses-a-big-voice-in-washington/

 


New SBA Administrator Maria Contreras-Sweet to Speak in Kansas City

Press Release

New SBA Administrator Maria Contreras-Sweet to Speak in Kansas City

By Lloyd Chapman
American Small Business League
May 12, 2014

PETALUMA, CA--(Marketwired - May 12,2014) - Newly appointed Small Business Administration (SBA) head MariaContreras-Sweet is scheduled to speak in Kansas City on Tuesday, May 13 inrecognition of Federal Small Business Week. Attendance to Contreras-Sweet'sspeech is being limited.

Contreras-Sweet will be speaking at9400 Ward Parkway, Kansas City, MO 64114. The link is www.sba.gov/nsbw/locations/kansas-city.

One of the issues Contreras-Sweet maybe asked to address is the continuing federal investigations and media reports that have found hundreds of billions of dollars infederal small business contracts that have been knowingly diverted to Fortune500 firms.

Every year of the last eleven years, federal investigators and investigative journalists have found Fortune 500 firms were the actual recipient ofbillions of dollars in federal small business contracts. The most recent datafrom the Federal Procurement Data System indicates that 175 Fortune 500 firmsreceived federal small business contracts last year and 250 the previous year.

The Small Business AdministrationOffice of Inspector General, headed by Obama appointee Peg Gustafson, has namedthe diversion of federal small business contracts to large corporations as the number one problem at the SBA every year forthe last six years.

After investigating the SBA, theGovernment Accountability Office essentially accused federal officials ofencouraging fraud when they released report 10-108 that stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there is no punishment or consequences forcommitting fraud."

A recent legal opinion byProfessor Charles Tiefer, one of the nation's leading experts on federalcontracting law, found that legitimate small businesses might have been fraudulently cheated out of over one trilliondollars.

In an apparent attempt to limit mediacoverage of the well-documented fraud and abuse in federal small businesscontracting programs, former head of Corporate Communications for the PentagonForce Protection Agency, retired Naval Commander Terry Sutherland took controlof the SBA Press Office in April of 2013. Sutherland has repeatedlydeclined to comment on the abuses. www.terrysutherlandinfo.org

The American Small Business League(ASBL) predicts the SBA's policy of diverting billions of dollars in federalsmall business contracts to Fortune 500 firms will continue under AdministratorContreras-Sweet's tenure.

Questions for the SBA can be directedto SBA spokesman Terry Sutherland (202) 205-6919 | terrence.sutherland@sba.gov | www.terrysutherlandinfo.org

 


Pentagon Refusing to Release Data on Comprehensive Subcontracting Plan Test Program

Press Release

Pentagon Refusing to Release Data on Comprehensive Subcontracting Plan Test Program

By Lloyd Chapman
American Small Business League
May 12, 2014

PETALUMA, CA--(Marketwired - May 12, 2014) - The Pentagon is refusing tocomply with Freedom of Information Act requests for specific data on the volumeof subcontracts awarded by any of the nation's twelve largest defense contractorsparticipating in the 25-year-old Comprehensive Subcontracting Plan TestProgram.

The American Small Business League hasbeen attempting to obtain specific data on contractors participating in theComprehensive Subcontracting Plan Test Program under the Freedom of InformationAct since 2010. They plan to file suite against the Pentagon this week inFederal District Court in San Francisco.

The Pentagon website for theComprehensive Subcontracting Plan Test Program states, "The purpose of thetest is to determine whether comprehensive subcontracting plans will result inincreased subcontracting opportunities for small businesses while reducing theadministrative burden on contractors." (Link)

No results on the effectiveness of the25-year-old test program have ever been produced or released to the public.

The program was enacted 25 years ago andyet it is virtually unknown across government. No journalist has ever writtenabout the program.

The program had two provisions. The firstwas prime contractors participating in the test program no longer had torelease quarterly (SF 294) and annual (SF 295) subcontracting reports that hadbeen previously available to the general public. The second provision of thetest program was that prime contractors participating in the test program wereexempt from any and all penalties under the law for non-compliance with theirfederally mandated small and small disadvantaged business subcontracting goals.

The Comprehensive Subcontracting PlanTest Program was enacted in 1989, shortly before the 9th CircuitCourt of Appeals in San Francisco issued a ruling against the Defense LogisticsAgency that found subcontracting reports submitted to the Pentagon from primecontractors were public information.

Prior to the implementation of theComprehensive Subcontracting Plan Test Program in 1989, all Pentagon primecontractors were required to submit quarterly (SF 294) and annual (SF 295)small business subcontracting reports. Federal law mandated that any primecontractor that failed to make a "good faith effort" to comply withtheir small and small disadvantaged business subcontracting goals could berequired to pay liquidated damages in the amount of the deficiency.

The American Small Business Leaguebelieves the Comprehensive Subcontracting Plan Test Program is a significantloophole created by the Pentagon to allow prime contracts to ignore federal lawthat requires a minimum of 23% of all federal contracts and subcontracts beawarded to small businesses and avoid any penalties for noncompliance withthose goal.

The ASBL believes the data they obtainthrough their litigation will prove legitimate small businesses have beendefrauded out of trillions in federal small business contracts since the testprogram began 25 years ago.

 


New SBA Administrator Maria Contreras-Sweet to Speak in San Francisco

Press Release

New SBA Administrator Maria Contreras-Sweet to Speak in San Francisco

By Lloyd Chapman
American Small Business League
May 9, 2014

PETALUMA, CA--(Marketwired - May 9,2014) - The following is a statement by the American Small Business League:Newly appointed Small Business Administration (SBA) head Maria Contreras-Sweetis scheduled to speak in San Francisco on Monday, May 12 to kick off FederalSmall Business Week. Attendance to Contreras-Sweet's speech is being limited.

Contreras-Sweet will be speaking atTwitter Headquarters in San Francisco Monday, May 12, 2014 from 7:30AM to12:00PM. Address: 1355 Market St. San Francisco, CA 94103.

One of the issues Contreras-Sweet willlikely hope to avoid is the continuing federal investigations and media reports that have found hundreds of billions of dollars infederal small business contracts that have been knowingly diverted to Fortune500 firms.

Every year of the last eleven years, federal investigators and investigative journalists have found Fortune 500 firms were the actual recipient ofbillions of dollars in federal small business contracts. The most recent datafrom the Federal Procurement Data System indicates that 175 Fortune 500 firmsreceived federal small business contracts last year and 250 the previous year.

The Small Business AdministrationOffice of Inspector General, headed by Obama appointee Peg Gustafson, has namedthe diversion of federal small business contracts to large corporations as the number one problem at the SBA every year forthe last six years.

After investigating the SBA, theGovernment Accountability Office essentially accused federal officials ofencouraging fraud when they released report 10-108 that stated, "By failing to hold firmsaccountable, SBA and contracting agencies have sent a message to thecontracting community that there is no punishment or consequences forcommitting fraud."

A recent legal opinion byProfessor Charles Tiefer, one of the nation's leading experts on federalcontracting law, found that legitimate small businesses might have been fraudulently cheated out of over one trilliondollars.

In an apparent attempt to limit mediacoverage of the well-documented fraud and abuse in federal small businesscontracting programs, former head of Corporate Communications for the PentagonForce Protection Agency, retired Naval Commander Terry Sutherland took controlof the SBA Press Office in April of 2013. Sutherland has repeatedlydeclined to comment on the abuses. www.terrysutherlandinfo.org

The American Small Business League(ASBL) predicts the SBA's policy of diverting billions of dollars in federalsmall business contracts to Fortune 500 firms will continue under AdministratorContreras-Sweet's tenure.