Hector Barreto has submitted his resignation as head of the U.S. Small Business Administration to become a lobbyist. He will head the Latino Coalition, a Hispanic advocacy group.

Mr. Barreto is not being forced to resign, a public relations aide claimed in speaking with The Associated Press.

Steven Preston has been picked by President George W. Bush to succeed Mr. Barreto.

Mr. Barreto was appointed to the SBA by Mr. Bush in 2001.

His resignation comes after the SBA was criticized for its handling of loans to help small businesses recovery after the 9/11 attacks and last year's hurricanes.

The SBA has also been sued twice by the American Small Business League, whose president, Lloyd Chapman, says he's not surprised at the resignation.

"I'm concerned this could signal a move by the government to adopt policies that may try to erode federal small business contracting programs," Mr. Chapman says.

He says he is also concerned about Mr. Preston's appointment.

((Listen to an interview with Mr. Chapman by clicking on the link below)).

The White House buried the announcement of Mr. Preston's appointment in a press release announcing routine appointments such as a nominee to be ambassador to the Republic of Tajikistan and a district court judge on the island of Guam.

Mr. Preston currently serves as executive vice president at ServiceMaster Co. Earlier, he was senior vice president and treasurer of First Data Corp.

ServiceMaster (NYSE:SVM) of Downers Grove, Ill., is a conglomerate, which includes such brands as Terminix, TrueGreenChemLawn, Merry Maids, Rescue Rooter and ServiceMaster.

It had sales of more than $3.2 billion in its most recent fiscal year.

Its sales are provided through a network of over 5,400 company-owned and franchised service centers and business units, its Web site says.

Mr. Preston did not immediately respond to a request for an interview made through ServiceMaster.