Obama Proposes to Close the Small Business Administration as
Predicted, According to the American Small Business League
PETALUMA, CA -- (Marketwire) -- 10/31/12 -- The following is a
statement by the American Small Business League:
Tuesday, President Obama reiterated his administration's plans to
combine the Small Business Administration (SBA) with the Department
of Commerce. The American Small Business League (ASBL) maintains this
move is aimed at eliminating small business programs under the guise
of saving money.
On November 25, 2008, ASBL President Lloyd Chapman issued a press
release predicting that President Obama would attempt to close the
SBA by combining it with the Department of Commerce. He made the same
prediction in November 2010 and August 2011.
Chapman believes President Obama's latest move is prompted by
pressure from lobbyists of large corporations that want 100 percent
of all federal contracting dollars. The federal government has a
congressionally mandated goal of awarding 23 percent of federal
contract dollars to small businesses. However, because of fraud and
abuse, billions of dollars in contracts earmarked for small
businesses are systematically diverted to large corporations.
Since 2003, a series of more than a dozen federal investigations have
discovered billions of dollars in federal small business contracts
that have been diverted to some of the largest corporations in the
United States and Europe.
Some of the companies that have received federal small business
contracts include Lockheed Martin, Boeing, AT&T, Raytheon, Dell,
British Aerospace (BAE), Rolls-Royce, Hewlett-Packard, IBM, Oracle,
and an international arms dealer owned by the Russian government
The ASBL is also concerned President Obama's plans will destroy
several years of documented fraud and abuse of federal small business
"Once the SBA and the Department of Commerce are combined, 10 years
of documented fraud and abuse of small business contracting programs
will be a moot point," said Chapman. "U.S. Census Bureau data tells
us that small businesses create more than 90 percent of all net new
jobs. Closing the only agency to service the nation's 27 million
small businesses where most Americans work would be economic lunacy.
If Obama wants to create jobs, he should quadruple the SBA's budget,
not plan to close it by combining it with the Department of
American Small Business League
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