PETALUMA, Calif., April 7, 2006 /PRNewswire/ Oklahoma Senator Tom Coburn was infuriated when a press release circulated by the American Small Business League announced that he had called a hearing to "abolish small business programs." The results of the hearing indicate that the ASBL may have been on the mark with their concerns as witnessed by the fact that after the ASBL statement was made public, two pro-small business advocates were added to the roster–Congresswoman Sue Kelly (R-NY) and David Bartram, Chairman of the National Association of Government Guaranteed Lenders–both espousing the benefits of SBA's small business programs.

Another signal that media attention changed the tone of the hearing was the complete absence of testimony from Veronique de Rugy, of the American Enterprise Institute, that Federal small business programs should be eliminated. Ms. de Rugy has been a vocal opponent of the SBA and has repeatedly called for the abolition of programs for small businesses, women, minorities, and disabled veteran-owned firms. Ms. de Rugy's testimony was uncharacteristically demure, almost certainly due to the concern expressed by small business advocates across the country.

While de Rugy tried to convince the Senate panel that less than 5% of American small businesses obtain SBA loans, expert witness David Bartram stated that of the small businesses that actually pursue loans, 40% of these receive loans from the SBA, which effectively refuted de Rugy's claim.

Senator Coburn stated that the purpose of the hearing was to discuss how to make the SBA run more effectively, but during the two hour and fifteen minute hearing, less than five minutes of testimony was directed toward solutions to fix the SBA. The majority of the testimony focused on problems within the agency. Professor Jonathan Bean of Southern Illinois University, stated that the SBA had "outlived its usefulness," and referred to it as a "bureaucratic mosquito."

Virtually none of the testimony addressed the seven Federal investigations that have found billions of dollars in small business contracts have been diverted to large companies. The SBA Office of Inspector General has characterized this as "one of the most important challenges facing the Small Business Administration and the entire Federal government today."

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1953. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

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