Petaluma, Calif. - During the 2008 presidential election cycle, President-elect Barack Obama made two key campaign promises which would have directed billions of dollars into the middle class economy.  With the election behind him, it seems that President-elect Barack Obama has now broken his promise to enact a windfall profits tax on the oil and gas industry which would have provided a $1,000 emergency energy rebate to American families, as well as his promise to end the diversion of federal small business contracts to corporate giants.

Prior to his election, President-elect Obama made a promise to initiate a windfall profits tax on the oil and gas industry to fund a $1000 tax rebate for families.  The promise was displayed prominently at the top of the economy section of Obama's campaign website.  That same information was transferred to Obama's transition website, www.change.gov, but was recently removed in an unceremonious and abrupt manner. ( Pre-change, https://www.asbl.com/documents/Economy_Change.pdf ; Post-change, http://change.gov/agenda/economy_agenda/ )

In February, President-elect Obama said, "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." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

Since 2003, a series of more than a dozen federal investigations have found that every year billions of dollars in federal small business contracts are diverted to some of the largest corporations in the United States and Europe. Investigative stories by ABC, CBS, and CNN (https://www.asbl.com/media2.php) have all found that billions of dollars in government small business contracts actually went to firms such as Dell, Home Depot, John Deere, Xerox, Lockheed Martin, Boeing, GTSI, General Dynamics, L-3 Communications, Titan Industries, Northrop Grumman, Rolls-Royce and British Aerospace (BAE).

Obama's pledge to end the diversion of small business contracts to corporate giants has now been completely eliminated from the change.gov website. 

The sudden elimination of these two issues from change.gov would seem to indicate that large corporations are already flexing their muscles with the Obama Administration and demonstrating their ability to control presidential policy over the will of the American people.

"He hasn't been inaugurated yet and we are already witnessing the elimination of policies that would have greatly benefited the middle class economy in the midst of one of the worst economic downturns in our lifetimes," President of the American Small Business League Lloyd Chapman said.  "I endorsed him, I voted for him, and I supported him and now I feel betrayed. He is obviously already going back on campaign promises. I think all small business owners should be concerned.  Based upon the extremely low priority that Obama has placed upon small business issues, it would not surprise me if he tried to completely close the Small Business Administration by combining it with the United States Department of Commerce."

To view full press release, click here: http://www.prnewswire.com/news-releases/corporate-giants-force-obama-to-drop-campaign-promises-65520337.html

Petaluma, Calif. - Ninety-eight percent of all companies in the United States have less than 100 employees. Twenty-seven million firms fall into the category of small business, and small businesses employ 56 percent of our nation's population. These companies are responsible for over 90 percent of the new jobs, over 90 percent of U.S. exports and over 90 percent of innovation in American business. Congress realized America's small businesses were the heart and soul of our nation's economy when they passed the Small Business Act in 1953.

Our nation is in the midst of one of the most dramatic economic downturns in modern history. More than ever, America's 27 million small businesses need the economic benefits the Small Business Act was designed to provide.

None of this seems to matter to President George W. Bush. Although President Bush regularly panders to small businesses in his speeches, his policies paint a different picture. At the same time that President Bush backed the $700 billion dollar Wall Street bailout, he continued to dismantle existing federal programs designed to assist American small businesses.

During his two terms, President Bush has systematically dismantled each and every program established under the Small Business Act to assist American small businesses, especially those firms owned by women, minorities and veterans.

President Bush's anti-small business policies began during his first week as president. The first thing he did to dismantle America's small business programs was to remove the Administrator of the Small Business Administration (SBA) from the President's Cabinet. Then he began to cut the SBA's budget and staffing more than any other federal agency.

Since 2003, over a dozen federal investigations have been released, which have all found rampant and government-wide fraud, abuse, loopholes and a blatant lack of proper oversight in federal small business contracting programs. Several of the investigations found that the Bush Administration has diverted billions of dollars in federal small business contracts to many of the largest corporations in the world.

Current federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses.  However, every year the federal government awards billions of dollars in small business contracts to some of the largest corporations in the U.S. and Europe.

Report 5-15 from the SBA Office of Inspector General states, "One of the most important challenges facing the SBA and the entire Federal Government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards."

Several Bush officials have privately acknowledged that at least 50 percent of all federal small business contracts or about $70 billion a year actually go to corporate giants. Based on information obtained in a series of successful Freedom of Information Act (FOIA) lawsuits filed against the Bush Administration, the American Small Business League (ASBL) estimates legitimate small businesses are being cheated out of over $100 billon each year.

Last year, the Bush Administration adopted a policy that will allow Fortune 500 firms to continue to receive government small business contracts until 2012. (https://www.asbl.com/showmedia.php?id=592) 

Last month, Bush officials began to dismantle one of the government's only programs to assist minority-owned firms, the Small Disadvantaged Business contracting program.

Senator McCain has never objected to any of the Bush Administration's anti-small business policies. During more than two years of campaigning, not once has Senator McCain mentioned his intention to restore America's small business programs. If Senator John McCain is elected president, he will likely finish what Bush started and completely dismantle all federal programs designed to assist American small businesses.

Petaluma, Calif. – Without explanation, presidential candidate Senator Barack Obama (D – IL) has attempted to retract a statement he made in February of this year pledging to end billions of dollars in fraud and abuse in federal small business contracting programs.

Senator Obama’s original statement was in response to over a dozen federal investigations, which have found that the Bush Administration has diverted billions of dollars in federal small business contracts to Fortune 500 firms. In report 5-15, the Small Business Administration Office of Inspector (SBA OIG) referred to the issue as one of the biggest challenges facing the entire federal government today. (http://www.sba.gov/IG/05-15.pdf)

In February, Senator Obama’s original statement was:
 
“I am proud to have the support of the American Small Business League and their grassroots efforts to help protect American small business. Helping American small business is part of our movement for change and the end of politics as usual. 98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. 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.” (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

The Obama campaign has now gone so far as to modify the original quote by removing Senator Obama’s statement, “It is time to end the diversion of federal small business contracts to corporate giants.”

Currently, the statement on Obama’s website reads, “Ninety-eight percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource…..Helping American small business is part of our movement for change and the end of politics as usual.” (http://my.barackobama.com/page/content/sbhome/)

On Tuesday of last week, CNN ran a story on the fact that neither of Senator Obama’s recent rescue plans for small businesses or the middle class made any mention of his February statement calling for the end of the diversion of federal small business contracts to “corporate giants.” There has been absolutely no response from the Obama campaign to the story.

Since making his original statement in February, Senator Obama has refused to mention the issue publicly or include any mention of it in his criticism of the Bush Administration. To date, Senator Obama and his campaign have not released a statement on this issue in any capacity.
Additionally, no member of the media has even asked Senator Obama why he has tried to distance himself from his pledge to end fraud and abuses in government small business contracting programs.

Petaluma, Calif. – Yesterday, the Senate Committee on Small Business and Entrepreneurship passed S. 3362, the SBIR/STTR Reauthorization Act of 2008. The bill will allow some of the world's largest venture capital firms to participate in federal small business contracting programs. The bill was introduced late on Tuesday, July 29th and passed through the Committee before opponents of the bill had a chance to see it. Missouri senator, Kit Bond, was the driving force behind the senate version of the bill to benefit venture capital firms.

On April 16, 2008, Representative Velazquez, the Chair of the House Committee on Small Business introduced the House version of the bill, H.R. 5819, and pushed the bill though the House in record time. As originally introduced, the bill would have allowed a single venture capital firm to control up to 51 percent of a small business and maintain its small business status for the purpose of federal contracting. As passed, H.R. 5819 allows billion dollar venture capital firms to participate in federal small business programs by modifying the existing definition of a small business in the Small Business Act, which requires a business to be "independently owned". Virtually every small business group in the country has opposed the legislation.

Small business owners and advocates across the country are outraged that Congress would even consider legislation that would allow some of the nation's wealthiest venture capital firms to participate in federal small business contracting programs. The American Small Business League (ASBL) maintains that S. 3362 and H.R. 5819 contain numerous intentional loopholes that will compound the widespread fraud and abuse that has already been uncovered in federal small business contracting programs.

Since 2003, over a dozen federal investigations have all discovered billions of dollars in federal small business contracts have actually wound up in the hands of hundreds of the largest companies in the U.S. and Europe. In the spring of 2005, the SBA Office of Inspector General released Report 5-15 which stated, "One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for those awards."

In the last thirty days alone, three separate federal investigations have been released by the SBA Office of Inspector General, General Accounting Office, and the Department of Interior Inspector General which have uncovered rampant fraud and abuse in several federal small business contracting programs. The Department of the Interior Office of Inspector General found that agency had awarded millions in federal small business contracts to numerous Fortune 500 firms such as Dell, Home Depot, John Deere, Sherwin Williams, Starwood Hotels and Xerox.

Small business advocates believe that H.R. 5819 and S. 3362 are prime examples of Congress ignoring the best interests of their constituents and pandering to wealthy venture capitalists that contribute millions to their campaigns.

If the legislation becomes law, members of the National Venture Capital Association (NVCA) and the Biotechnology Industry Organization (BIO) would receive billions in federal small business contracts. During the 2008 election cycle, the NVCA and the BIO have made significant political contributions to key congressional leaders. All the recipients of those contributions are now strongly behind passage of these two bills. According to Opensecrets.org, 17 members of the House Small Business Committee have received contributions from either the NVCA or BIO during 2008, which represents 55 percent of the Committee. Additionally, five members of the Senate Committee on Small Business received contributions from either NVCA or BIO. House Speaker, Nancy Pelosi, is known to have close ties to the NVCA.

"This is the most disgusting and blatant example I have ever seen of Congress completely ignoring the best interest of the American people and selling legislation to the highest bidder," ASBL President, Lloyd Chapman stated.

"Our country is in the middle of one of the most dramatic economic downturns in our nation's history. America's 26 million small businesses need the benefits of federal small business contracting programs like never before. It is unconscionable that not only has Congress failed to adopt simple legislation to end the rampant and widespread fraud that has been uncovered in federal small business programs, but instead proposed legislation to give federal small business dollars to billionaires," Chapman said. "This legislation is a prime example of why this Congress has one of the lowest public approval ratings in recent history. Any member of Congress that supports a piece of legislation that will cheat America's middle-class businesses does not deserve to stay in office. The ASBL will fight this legislation with all of our resources. If it does pass, we will do everything we can to see that every member of Congress that voted for it will regret that decision."

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