Petaluma, Calif. – President Obama's latest small business stimulus plan disappointed many small business owners and advocates, as it did not contain any specific provisions to infuse stimulus funds and stimulus spending directly to small businesses.

So far, 100% of the $2.3 trillion in federal funds that will be spent in an attempt to stimulate the economy are destined for state governments and the top 1% of U.S. firms. None of the stimulus funds or spending has been specifically directed to America's 27 million small businesses.

Small business owners and advocates were hoping President Obama would use this latest small business stimulus plan to keep a campaign promise he made in February of 2008 when he said, "It is time to end the diversion of federal small business contracts to corporate giants."

President Obama's statement was in response to a series of federal investigations that found hundreds of billions of dollars in federal small business contracts had been diverted to Fortune 500 firms. Stories on the diversion of federal small business contracts to corporate giants have run in every major newspaper and have aired on ABC, CBS and CNN (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

The American Small Business League (ASBL) has won a series of Freedom of Information Act (FOIA) cases against the Small Business Administration that forced the release of information on the actual recipients of federal small business contracts. Based on that data, the ASBL estimates over $100 billion a year in federal small business contracts are being diverted to Fortune 500 firms and hundreds of other large businesses. (https://www.asbl.com/documentlibrary.html)

The ASBL believes if President Obama would adopt policy or legislation to stop the flow of federal small business contracts to corporate giants, this would do more to stimulate the economy and create jobs than any of the small business policies President Obama has offered so far.

After watching President Obama outline his latest small business plan on CNN, ASBL President Lloyd Chapman stated, "The tax cuts and increased SBA loan guarantees are certainly a step in the right direction. If President Obama is sincerely trying to help small businesses, it is difficult to understand why he has consistently refused to adopt policies to stop over $400 million dollars a day in federal small business contracts from being diverted to Fortune 500 firms and thousands of large businesses. It just doesn't make sense."

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