Congress should defeat plan to hurt small businesses

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Congress should defeat plan to hurt small businesses

By Daily Tribune Staff
Daily Tribune
January 25, 2009

Beware of politicians bearing changes in federal policies.

More often than not, there is more to their goals than simply streamlining government.

That's our take on proposals in Congress that would allow venture capitalists to receive federal contracts currently targeted for small businesses.

House Speaker Nancy Pelosi has proposed legislation that would remove from the Small Business Act wording that defines a small business as "independently owned."

That would make large venture capital firms eligible for more government contracts, according to the American Small Business League.

"The new loophole could divert billions of dollars in federal small business contracts away from middle class firms and into the hands of wealthy investors," the ASBL said in a press release issued this month.

"If Congress does adopt legislation that allows venture capitalists to participate in federal small business contracting programs, thousands of middle class jobs could be lost as legitimate small businesses struggle to compete head-to-head with firms owned and controlled by billionaire investors."

If there is one thing we have learned from the banking and mortgage crisis it is that larger does not always equate to better.

The ASBL also points out that many of the largest venture capital firms are located in Pelosi's California district and that the congresswoman has received more than $100,000 from these companies or their lobbyists.

That's not a large amount in Washington politics.

But it is just as important to note that her proposal is also opposed by the Small Business Administration, the U.S. Chamber of Commerce, the National Association of Government Contractors and the National Small Business Association.

Can so many influential business groups be wrong?

We think not, and other members of Congress will hopefully recognize the impact the change would have on small businesses around the United States.

Source:  http://www.dailytribune.com/articles/2009/01/25/opinion/srv0000004542774.txt





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