This letter went out to: Dr. Marc Lamont Hill, Oprah Winfrey, Rep. Judy Chu (D-CA), Susan Au Allen, Lester Holt, Robert Johnson, Harry C. Alford, Javier Palomarez, Esther Aguilera, Marc H. Morial, Rep. Jesse Jackson Jr. (D-IL), Rep. Emanuel Cleaver (D-MO), Benjamin Todd Jealous, Colin Powell, Don Lemon, Tavis Smiley, Dr. Cornel West, Al Sharpton and Jesse Jackson.

Petaluma, Calif. – As one of the most influential minority leaders in America, I am asking for your help in stopping a policy that could cost minority communities millions of jobs. On Friday, September 9, the Obama administration proposed a policy to end one of the most successful federal programs to create jobs and stimulate growth among minority-owned small businesses.

The policy, announced in the Federal Register, aims to end a program that established a five percent minority-owned small business federal contracting goal for the Department of Defense, NASA and the U.S. Coast Guard. I estimate that this change will have a significant, negative economic impact on a substantial number of minority-owned small businesses, costing millions of jobs.

It is difficult to understand why, in the middle of one of the worst economic downturns in U.S. history, and when unemployment has hit minority communities especially hard, the Obama administration would end one of the most successful programs to create jobs for minorities. According to the U.S. Department of Labor, the jobless figure for African Americans is 16 percent and 11.3 percent among Hispanics. Close to 35 percent of the U.S. population is made up of ethnic minorities and 5.8 million businesses are minority-owned. According to U.S. Census Bureau data, small businesses create 90 percent of all net new jobs in America. I estimate that this change will divert billions of dollars in federal contracts away from minority-owned small businesses, thwarting the power of those businesses to expand and hire.

I have been a small business advocate for two decades and have rarely seen policies as detrimental as this latest proposal from the Obama administration. I have launched a national campaign to block its implementation. Minority-owned small businesses have until November 8, 2011 to comment on the proposed change in the Federal Register.

The administration will tell you that the impact of this policy will be minimal and that you have been misinformed. Nothing could be further from the truth. I need you to help tell President Obama, Congress, the U.S. Justice Department and the media that there is indeed discrimination in federal contracting, and this program needs to be saved.

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Petaluma, Calif. – On Friday, September 9, your administration announced plans to end one of the most successful federal programs to create jobs and stimulate growth among minority-owned small businesses.

Your administration announced a plan in the Federal Register to end a federal program that established a five percent minority-owned small business federal contracting goal for the Department of Defense, NASA and the U.S. Coast Guard. This change will have a significant negative economic impact on a substantial number of minority-owned small businesses and will cause the loss of millions of jobs.

I question your sincerity in trying to create jobs when, in the middle of one of the worst economic downturns in U.S. history, and when unemployment has hit minority communities especially hard, your administration would end one of the most successful programs to create jobs for minorities. According to the U.S. Department of Labor, the jobless figure for African Americans is 16 percent and 11.3 percent among Hispanics. Close to 35 percent of the U.S. population is made up of ethnic minorities and 5.8 million businesses are minority-owned. I have alerted every minority organization that I can think of, and they are as shocked as I am.

Data from the U.S. Census Bureau indicates that small businesses create 90 percent of all net new jobs in America. I estimate that this policy will divert billions of dollars in federal contracts away from minority-owned small businesses, thwarting the power of those businesses to expand and hire.

I have been advocating for policies that provide the best possible opportunity for small businesses for two decades, and I have rarely seen anything as damaging as this latest proposal. I have launched a national campaign to block its implementation.

I would also like to remind you of your campaign promise to “end the diversion of federal small business contracts to corporate giants.” With this latest proposal, you seem to be going backwards. The last thing this country needs is for your administration to dismantle programs that help the nation’s chief jobs creators.

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Petaluma, Calif. – Today, Lloyd Chapman, President of the American Small Business League (ASBL), sent a series of open letters to minority leaders across the country asking them to help stop a policy that could cost minority communities millions of jobs.

On Friday, September 9, the Obama administration announced plans to end a federal program that established a five percent minority-owned small business federal contracting goal for the Department of Defense, NASA and the U.S. Coast Guard. According to text from the Federal Register, this proposed change “may have an effect on SDBs (Small Disadvantaged Businesses) seeking awards as prime contractors.” Chapman argues that the negative economic impact will be significant.

 In Chapman’s letter he stated:

“It is difficult to understand why, in the middle of one of the worst economic downturns in U.S. history, and when unemployment has hit minority communities especially hard, the Obama administration would end one of the most successful programs to create jobs for minorities. According to the U.S. Department of Labor, the jobless figure for African Americans is 16 percent and 11.3 percent among Hispanics. Close to 35 percent of the U.S. population is made up of ethnic minorities and 5.8 million businesses are minority-owned. According to U.S. Census Bureau data, small businesses create 90 percent of all net new jobs in America. I estimate that this change will divert billions of dollars in federal contracts away from minority-owned small business, thwarting the power of those businesses to expand and hire.”

The ASBL is working with minority leaders nationwide to block this policy. Minority businesses have until November 8, 2011 to comment on the proposed policy in the Federal Register.

Specifically Chapman wants minority leaders to tell President Obama, Congress, the U.S. Justice Department and the media that there is indeed discrimination in federal contracting, and that this program needs to be saved.

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Petaluma, Calif. - President Obama’s new jobs bill ignores America’s oldest and most cost-effective economic stimulus program, the Small Business Act of 1953. This legislation aims to stimulate the American economy by requiring that a minimum 23 percent of all federal contract dollars be awarded to small businesses.

Since 2003, a series of federal investigations have found that, despite the Small Business Act, most federal small business contracts are awarded to Fortune 500 firms and other large businesses worldwide.

During his 2008 presidential campaign, Barack Obama stated, “It is time to end the diversion of federal small business contracts to corporate giants.” Yet since taking office, President Obama has done nothing to keep that campaign promise. As a result, every day of his Administration, hundreds of millions of dollars in small business contracts are awarded to large businesses. These companies include Lockheed Martin, General Electric, Rolls-Royce, British Aerospace and Italian defense giant Finmeccanica.

The American Small Business League (ASBL) estimates that American small businesses are cheated out of as much as $200 billion in federal contracts annually due to this widespread and blatant abuse.

In 2005, the Small Business Administration Office of Inspector General (SBA IG) released Report 5-15, which described the diversion of federal small business contracts to large businesses as, “One of the most important challenges facing the Small Business Administration and the entire federal government today.”

According to the U.S. Census Bureau, small businesses create more than 90 percent of all net new jobs. Small businesses employ half the private sector workforce, are responsible for half of GDP and more than 90 percent of U.S. exports.

“I watched President Obama’s speech last night and I was infuriated,” said ASBL President Lloyd Chapman. “I wish everyone watching that speech knew that President Obama has cheated small businesses out of hundreds of millions of dollars a day in federal small business contracts that should go them by law. If President Obama wants to create jobs, he needs to keep his campaign promise and end the diversion of federal small business contracts to large corporations.”

Petaluma, Calif. - Tonight, President Obama will propose a new jobs program in the midst of a weak and uncertain economy. The American Small Business League (ASBL) predicts that the President will ignore the nation’s chief job creators, its 28 million small business, and continue to divert infrastructure spending to large businesses.

Since 2003, a series of federal investigations have found that the majority of federal small business contracts go to some of the largest companies in the U.S. and Europe. The Obama Administration’s small business contracting data over the past two years indicates that companies like General Electric, Northrop Grumman, Lockheed Martin, AT&T, Finmeccanica in Italy, British Aerospace (BAE) in the U.K, and Thales in France, all received small business contracts.

The federal government has a congressionally mandated 23 percent small business contracting goal, as established in the Small Business Act of 1953. That bill established the Small Business Administration (SBA) and a national network of small business liaisons, as well as reporting goals for agencies and prime contractors, all to ensure that a fair portion of federal contracts are awarded to small businesses.

According to U.S. Census Bureau data, small businesses create 90 percent of net new jobs in America. Small businesses are responsible for half of GDP, employ more than half of the private sector workforce and produce 90 percent of all U.S. exports. Small businesses also create thirteen times more patents per employee than large businesses.

During the 2008 presidential campaign Barack Obama stated, “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.” Yet in the Obama Administration’s 2010 contracting data, 61 of the top 100 small business contractors were actually large businesses.

The ASBL estimates that ending this decade-long contracting abuse would redirect as much as $200 billion a year in federal infrastructure spending to the middle class. This will create more jobs than any economic policies the Obama Administration has ever proposed.

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