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.

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