PETALUMA, Calif., Nov. 13, 2014/PRNewswire-USNewswire/ -- American Small Businesses League (ASBL) President Lloyd Chapman is preparing a nationalcampaign to resist a possible effort by the Republican controlled Congressto try and close the Small Business Administration (SBA).

Chapman believes the Republican Congress will resurrect former PresidentRonald Reagan's plan to permanently close the SBA by combining it with theDepartment of Commerce.

According to the latest data from the U.S. CensusBureau, 98 percent of all U.S. firms have less than 100 employees. Those 28million small businesses are responsible for over 90 percent of the nation'snet new jobs, over 50 percent of the private sector work force and over 50percent of the GDP. The Small Business Act mandates that not less than 23 percent of all federal contracts be awarded tosmall businesses.

"Awarding 23 percent of all federal contracts to smallbusinesses is the most efficient and effective economic stimulus program inU.S. history. Dismantling the SBA and that program would be economicsuicide," Chapman stated.

Former President George Bush Jr.tried to shut down the SBA by starvingthe agency of funds and staffing. The agency was crippled when their budgetand staffing was cut nearly in half.

Bush allegedly told Hector Barreto,who was appointed to head the SBA, that he wanted the agency closed by the endof his first term.

Chapman and Barreto battled in the press over the Bush Administration's efforts to close the SBA and the BushAdministration's policy of diverting billions of dollars a month in federalsmall business contracts to Fortune 500 firms and thousands of other largebusinesses. The SBA survived the Bush Administration and Barretoultimately quietly left the SBA under circumstances that were neverpublicized.

A February 24, 2003 article in WashingtonTechnology reported, "The General Accounting Office began its owninvestigation based on information Chapman provided, said David Cooper, director of GAO's Acquisitionand Sourcing management office."

The GAO investigation uncovered over 5,000 large businesses werereceiving billions of dollars in federal contracts that were being reported asawards to small businesses.

Since that original GAO investigation there have been over adozen federalinvestigations that have found hundreds of Fortune 500 firms that were theactual recipients of federal small business contracts.

NBC, CBS,ABC, CNN,CNBC, MSNBC, RTTV and Fox News haveall reported on the diversion of federal small business contracts to corporategiants.

Chapman believes the Republican Congress will attempt to closethe SBA to obscure the hundreds of billions of dollars in fraud and abuse thatfederal investigations and the media have uncovered in federal small businesscontracting programs, primarily at the Pentagon.

"It's obvious the Pentagon is desperate to close the SBA tocover up over 20 years of blatant fraud and corruption in their small businesscontracting programs. I wouldn't be surprised if Senator Burr tries again to lead the Republican assault to close the SBA and kill federal small business programs," Chapman stated.

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