Everyone (who didn’t get it before) is starting to understand why the $700 billion Emergency Economic Stabilization Act is necessary to ensure that the credit markets start flowing and that banks feel comfortable enough to loan to individuals, businesses and other banks.

Many people say that at the heart of the legislation is the urgency to undergird the needs of small businesses and their ability to draw credit for payroll, product development and operations. If that is the indeed the case, then lawmakers should definitely vote yes, but they should take a critical look at certain questionable elements of the bill before doing so.

For example, why did the Bush Administration decide to give the Treasury Secretary the authority to waive specific provisions of the Federal Acquisition Regulation in the proposed bailout? All Federal Executive agencies are required to adhere to FAR in their acquisition of supplies and services with appropriated funds. But most important to BlackEnterprise.com audiences FAR stipulates minority procurement of government contracts.

President Bush has not been a fan of affirmative action and by extension he has not been kind to the Small Business Administration along with 8 (a) programs that entitle women, veteran and minority-owned businesses to a certain portion of government contracts.

The American Small Business League has gone so far as to accuse the bill of having “Anti Small business” language. Of course the bill does NOT say “Don’t give government contracts to minorities.”

But when you take into account the fact that the SBA refuses to release statistics about the budget for fiscal year 2007 I understand why the ASBL might be led to think that the Bush administration has something fishy up their sleeves. Especially when the time frame in Section 107 is completely open-ended.

Lloyd Chapman, president and founder of the ASBL said in an interview that minorities are losing 90% of all the small business contracts to large businesses. Some of the names of companies who he reports are receiving this small business money include Boeing, Halliburton, Lockheed. Businesses? Yes. Small? Definitely not.

“Since Bush was elected he’s done everything he can to try to dismantle federal programs for minorities and small businesses and women owned firms,” says Chapman, listing here several other accusations against the Bush administration:

• He refused to implement a seven year federal law directing that 5% of federal contracts be set aside for women-owned firms.
• He closed the office of the SBA to help veteran-owned firms 18 months ago
• He cut the SBA budget and staff by over 50%
• The SBA (which is run by a Bush appointee) has refused to release names of firms that received small business contracts, and it is appealing to the 9th circuit court of appeals a federal court order that has directed them to release the names of firms that received small business contracts.

Chapman says the government reports giving $80 billion of small business contracts to small businesses last year. “But when you ask them who did that go to exactly? You have to spend a quarter million dollars in federal court to find out,” says Chapman. ”What do you think that means?”

That means that Senate and House members should still vote yes on the bailout. But knowing the administrations history they need to be cautious about the language used to give the Secretary of Treasury-a Bush crony-the right to waive regulations that safeguard a seat at the table for small and minority businesses. If Chapman’s assertions are correct, then the Bush administration is basically saying “We want to repeal the law, but trust us we’re going to make every effort to include small businesses.” Well there is a law now and they aren’t complying.

Chapman put it best when he asked?

“What would you rather have from a government that has diverted small business contracts to fortune 500 companies? Would you rather have a law or “We’ll do the best we can?”

Marcia A. Wade is the interactive reporter at Blackenterprise.com

Source:  http://politics.blackenterprise.com/2008/10/01/far-reaching-bailout/