Petaluma, Calif. - President Barack Obama has outraged small business owners across the country by continuing Bush Administration policies that divert federal small business contracts to Fortune 500 firms.

Since 2003, over a dozen federal investigations have been released, which found billions of dollars in federal small business contracts have actually wound up in the hands of some of the largest firms in the United States and Europe. (https://www.asbl.com/documentlibrary.html)

In 2005, the SBA's own Office of Inspector General referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf) 

The nation's largest newspapers have all covered the story along with major television networks such as 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)   

In February of 2008, during the Presidential campaign, President Obama promised to end the abuses when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)   

To date, President Obama has consistantly refused to propose any policies or legislation to address the issue. President Obama refused to include any solutions to the issue in any of his small business rescue and stimulus plans. Since President Obama has taken office, approximately $2 billion a week in federal small business contracts have gone to Fortune 500 firms and thousands of other large businesses. (https://www.asbl.com/documents/BOsmallbusinesspolicy.pdf)  

According to the latest U.S. Census Bureau statistics 98 percent of all U.S. firms have less than 100 employees. These firms employ over 50.4 percent of the private sector workforce and create over 97 percent of all new jobs in America. President Obama promised to create millions of new jobs in America, but so far, the small businesses that create the lion's share of new jobs have not seen one dime of federal stimulus funds under any of President Obama's stimulus plans.

Now, in addition to being shut out of all federal stimulus funds, small businesses are losing billions of dollars in federal small business contracts every month. President Obama has consistently refused to make good on his February 2008 campaign promise to stop the flow of federal small business contracts to corporate giants.

Small business owners and advocates are disappointed and angered that President Obama has decided to continue the Bush Administration's anti-small business policies. Even in the face of the highest national unemployment statistics in 26 years, President Obama is still refusing to make good on his most important campaign promise to America's 27 million small businesses.