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SBA Struggles To Cover Up Rampant Fraud Against Mounting Evidence

3:56 pm in Uncategorized by Lloyd Chapman

The Small Business Administration (SBA) is starting to run out of believable excuses to explain why every year since 2000, billions of dollars in federal small business contracts have wound up in the hands of some of the largest corporate giants in the world.

The SBA has consistently claimed for over fifteen years that the diversion of billions of dollars in federal small business contracts to corporate giants is the result of random errors, computer glitches, miscoding, simple human error and anomalies.

What the SBA has never been able to explain is why all the alleged random mistakes do not have a random pattern of distribution, but in fact always divert federal small business contracts to large businesses and inflate the volume of federal contracts that are reported as going to legitimate small businesses.

On Thursday, September 10, new SBA Administrator Maria Contreras-Sweet struggled to explain why the SBA is still including billions of dollars in federal contracts to Fortune 500 firms in their small business contracting statistics.

New York Representative, and ranking member on the House Small Business Committee, Nydia Velasquez chastised Administrator Contreras-Sweet about firms like Raytheon, Northrop Grumman and Chevron receiving small business contracts. Representative Velasquez threatened Administrator Sweet with another GAO investigation of the agency. A 2003 GAO investigation of the SBA uncovered over 5000 large businesses were receiving federal small business contracts.

The latest data from the Federal Procurement Data System indicates of the top 100 companies receiving the highest dollar amount in federal small business contracts, 79 were actually large businesses.

The SBA Office of Inspector General has named the diversion of federal small business contracts to corporate giants as the number one problem at the SBA for a decade.

Fox News, CNBC, MSNBC, NBC, ABC, CBS and CNN have all covered the diversion of federal small business contracts to Fortune 500 firms and thousands of large businesses.

A recent legal opinion by Professor Charles Tiefer, one of the nation’s leading experts on federal contracting law, found no legal justification for the SBA’s inclusion of federal small business contracts to large businesses in their small business contracting data. He also found that the actual total federal acquisition budget is closer to $1.1 trillion versus the much smaller $355 billion used by the SBA.

As opposed to adopting any legislation or policies to halt the rampant fraud and abuse, the SBA has done just the opposite. On August 25, the SBA concluded taking public comment on a new policy that would likely encourage more federal contracting fraud and divert even more federal small business contracts to large businesses.

The SBA’s new “safe harbor from fraud penalties” policy received an overwhelming thumbs down from the public.

Under current federal law, a firm that misrepresents itself as a small business to illegally receive federal small business contracts can face up to ten years in prison, a fine of up to $500,000, or both.

Under the proposed SBA “safe harbor from fraud” policy, a large business that is caught committing felony federal contracting fraud can avoid any penalties by simply claiming they “acted in good faith.”

The fact that the SBA has proposed a new policy that could encourage fraud is startling, considering an investigation by the GAO essentially accused the SBA of encouraging fraud. GAO Report 10-108 stated, “By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”

A recent investigation of the SBA Office of Advocacy by the Government Accountability Office also found significant problems. The head of that office resigned shortly after the results of the GAO investigations were released.

The American Small Business League has launched a national campaign to encourage the GAO and the FBI to conduct an investigation of SBA executives to determine who is responsible for the continuing fraud in SBA managed programs.

Washington Post Finds SBA Has Fabricated Contracting Data for Years

3:04 pm in Uncategorized by Lloyd Chapman

Seal of the Small Business Administration

The Washington Post is still missing the real story on the SBA.

The Washington Post is finally coming around to the fact that the Small Business Administration (SBA) has been falsifying and fabricating the volume and percentage of federal contracts that have been awarded to small businesses for several years.

While I like Washington Post reporter J.D. Harrison’s story, there are a couple of points they are still missing. The Washington Post story has a fascinating paragraph in it.

Once every year, the U.S. Small Business Administration pulls data from a federal database managed by the General Services Administration and issues a report indicating what percentage of eligible government contracting dollars went to small businesses during the previous year. By law, federal agencies are collectively supposed to commit 23 percent of all prime contracting dollars to small businesses.

It seems to me the first sentence and the second sentence seems to contradict one another. The first sentence says, “percentage of eligible government contracting dollars.” The second sentence says, “23 percent of all prime contracting dollars.”

The second sentence is correct. Federal law clearly states a minimum of 23% of all federal contracts shall be awarded to small businesses. The “percentage of eligible government contracting dollars” is just something the GSA and the SBA made up out of thin air to falsify, fabricate, misrepresent and inflate the actual percentage of federal contracts that were awarded to small businesses. If you disagree, show me where it says anywhere in the Small Business Act about the “percentage of eligible government contracting dollars.

I’m saying the SBA, as an agency, and SBA Administrator Maria Contreras-Sweet are both blatant liars. Put me in my place, shut me up and show us where the Small Business Act mentions anything about “percentage of eligible government contracting dollars”. You can’t because it’s not in there; the GSA and SBA just made it up.

The other aspect of this story the Washington Post missed is the $83 billion the SBA claimed went to small businesses. Billions of dollars actually went to Fortune 500 firms, their subsidiaries and thousands of large businesses around the world. Here is my second challenge to anyone that wants to take me on and shut me up. Show me the sections of the Small Business Act that allows for Fortune 500 firms or their subsidiaries to qualify as small businesses.

Lets try something new. If anyone wants to challenge my facts, do it out in the open using your real name and where your work. Lets skip the sock puppets in the SBA Press Office, NSA, Naval War College and the PR firms the government has hired to masquerade as private citizens hiding behind one of your many usernames.

My name is Lloyd Chapman. I’m the President and founder of the American Small Business League. My email is Lchapman@ASBL.com and by phone number is 707-789-9575. If you want to challenge me, don’t hide behind a user name, don’t be ashamed of who you are or what you do, just be honest and do it using your real identity just like I do.

Anyway I’m just glad to have J.D. Harrison and the Washington Post finally join the real world and begin to report the truth that the SBA has been lying about the percentage and volume of federal contracts that actually go to small business for years.

I have been saying that since 2002. I guess that means the Washington Post has now joined the ranks of conspiracy nuts just like me. Well just like me and NBC, CBS, ABC, CNN, CNBC, RTTV, MSNBC, dozens of the largest newspapers in America, the Government Accountability Office and the SBA Office of Inspector General. Oh, I forgot to mention Professor Charles Tiefer, one of the nation’s leading experts on federal contracting law. He is actually one of the original members.

Anyway welcome to the club Washington Post. It’s about time. We can use your help.

Should I include those 38 journalistic organizations that sent President Obama a letter last month asking him to stop “political-driven censorship of the news”? I think I should. I wouldn’t want to hurt their feelings.

I think we will call the group the NAOCNTTOHCSBOOT. I’m not exactly sure how to pronounce that but it stands for, the National Association Of Conspiracy Nuts That Think Obama Has Cheated Small Businesses Out Of Trillions.

We’ll have the first meeting at my house.

 

One Call To SBA’s Terry Sutherland Could Lead To A Pulitzer Prize

3:09 pm in Uncategorized by Lloyd Chapman

Portrait of Terry Sutherland

Journalists: Call Terry Sutherland for a chance to win valuable prizes.

You think stories about the Small Business Administration (SBA) are beneath you and trivial. Would a story about over a trillion dollars in federal contracting fraud that involves every federal agency and the Pentagon’s largest prime contractors interest you? I suggest you take five minutes and make one phone call and see what happens.

Call Terry Sutherland at the Small Business Administration Press Office and ask him if the SBA is including any Fortune 500 firms or their subsidiaries in the SBA’s latest small business contracting statistics. See what happens.

See if you can just call Terry Sutherland up and get him to answer questions on why the SBA has included billions of dollars in federal contracts to Fortune 500 firms in their small business contracting data every year since 2000.

See if you can just give him a call and talk with him without having to make an appointment with him and several people all at once on a conference call. (They love those conference calls) Tell him you just want to talk to him one on one. See what happens.

If I’m just a conspiracy nut like the SBA has been telling journalist for over a decade there shouldn’t be any problem getting Terry Sutherland to answer extemporaneous questions on why Fortune 500 firms have been receiving billions of dollars in federal small business contracts for 15 years.

Listen to him tell you it’s the result of miscoding, anomalies, computer glitches and simple human error. Then ask him why these random errors always divert federal business contracts to Fortune 500 firms and other large businesses and never the other way around.

Random, unintentional errors would have a random pattern of distribution like flipping a coin. Heads or tails or in the case of federal contracting, big or small. Ask him to explain why for every billion dollars in federal contracts to a large business that was miscoded as a small business contract there isn’t a billion dollars in contracts to small businesses that have been miscoded as large business contracts.

Ask him why according to the latest data from the Federal Procurement Data System, 175 Fortune 500 firms received small businesses contracts in FY 2013.

When he tells you it’s the result of big companies purchasing small ones, remind him under federal law that as soon as a big business buys a small one that firms is legally no longer a small business.

Ask Terry Sutherland if he will release all his phone records and emails. See what happens. Ask Terry Sutherland why the SBA Office of Inspector General has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA every year since 2005 and yet the SBA has never even proposed any policies to stop it.

Ask Terry Sutherland why the SBA is now taking public comment on a new SBA policy that will create a “safe harbor from fraud penalties” for large businesses that have misrepresented themselves as small businesses and illegally landed federal small business contracts.

When he gives you some baloney about protecting firms that have “acted in good faith” ask him if the SBA Office of Inspector General has ever issued a report that found too many firms that “acted in good faith” were being prosecuted for contracting fraud.

The SBA has vehemently denied there is any fraud in federal small business contracting since 2002. Ask Terry Sutherland why the SBA is taking public comment on a policy to create a “safe harbor” for fraud when they have consistently denied any evidence of fraud in federal small business contracting.

When you see the reaction to some of these questions you might begin to wonder what is really going on here. You might even ask yourself why one of the Pentagon’s most senior spokesmen suddenly showed up at the teeny tiny Small Business Administration. Ask him how he went from handling issues like the possibility of a nuclear missile strike on the U.S. by China to miscoding and anomalies at the SBA.

When Terry wants to talk to you off the record, say no. When he starts trash talking me tell him you are not interested in talking about Lloyd Chapman. Tell him you just want to stick to the facts and leave me out of it. Do me a favor, when he starts trash talking me, ask him how he feels as a veteran about the Government Accountability Office essentially accusing the SBA of encouraging fraud in the Service-Disabled Veteran-Owned Small Business program in GAO Reports 10-108 and DOD OIG Report DODIG-2012-059. Imagine the color draining from his face as he nervously begins looking at his watch.

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Terry Sutherland’s Appearance Explained with New SBA Fraud Protection Policy

3:19 pm in Uncategorized by Lloyd Chapman

I have been wondering why one of the most tenured and experience Pentagon spokesmen suddenly popped up at one of the smallest agencies in government, the Small Business Administration (SBA).

Portrait of Terry Sutherland

Sympathy for the devil.

It makes perfect sense. Terry Sutherland is there to help journalists understand why the SBA needs a policy to create a “safe harbor” from penalties for firms that are guilty of the fraud that is absolutely not happening at the SBA.

Terry Sutherland is there to help the public understand why the SBA needs a policy to essentially legalize the fraud that has not been uncovered in over a dozen federal investigations and countless reports in the mainstream media. They have not all found hundreds of billions of dollars in federal small business contracts that have actually wound up in the hands of some of the biggest corporations in the world.

Commander Cover-Up has taken over the SBA Press Office to help journalists understand they need a new “safe harbor “policy to protect fraudulent firms from penalties because Lloyd Chapman is a conspiracy nut.  CNN did not uncover wide spread fraud in a federal program designed to help small businesses.

Terry Sutherland is there to help the mainstream media understand there is no fraud in SBA managed programs. That’s why the Government Accountability Office released Report 10-108 that stated, “By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”

Terry Sutherland is just there to help the media clearly understand that even though the SBA Inspector General has named the diversion of federal small business contracts to big businesses as the number one problem in the SBA ever year for a decade, there is no fraud at the SBA. That’s why the SBA needs a new policy to protect fraudulent firms with a “safe harbor” from penalties.

I hope it’s clear to everyone the fact that one of the Pentagon’s top cover-up hit men went from the largest agency in government to a teeny tiny agency with a budget that is .001% of the Pentagon’s budget because there is no fraud at the SBA or the Pentagon.

And of course Lloyd Chapman is just a conspiracy nut with his 40 national television appearances, his endless press releases and blogs and his 30 legal victories over the federal government and his Bill in Congress, H.R. 1622.

Federal law mandates a penalty of not more than 10 years in prison, a $500,000 fine per occurrence, or both, for big businesses that misrepresent themselves as small businesses to hijack federal small business contracts.

Since there is clearly no fraud in SBA managed small business contracting programs, Terry Sutherland simply wants everyone in the media to understand that’s why the SBA has proposed a new “safe harbor” from penalties for firms that commit fraud.

SBA Magic Trick Turns Thousands of Big Businesses into Small Ones

1:01 pm in Uncategorized by Lloyd Chapman

Seal of the Small Business Administration

Legalistic trickery threatens to turn fraudulent big corporations into legal businesses.

On Monday morning July 14, thousands of big businesses will instantly become small businesses again. The Small Business Administration (SBA) will perform this magical miracle with just two quiet policy changes.

Hounded for over a decade for diverting billions of dollars in federal small business contracts to big businesses, the SBA has finally come up with a very creative solution to their dilemma. Adopt phony baloney polices under the guise of “helping small businesses” that turn all the big businesses the SBA has been including in their small business contracting data for over a decade into small businesses.

Abracadabra! Thousands of small businesses suddenly appear. Shazam! Problem solved!

The SBA has displayed an astounding mystical magnitude of slight of hand and misdirection that would make David Copperfield proud.

Every year for a decade the SBA’s pesky Office of Inspector General has named the diversion of federal small business contracts to big businesses as the number one problem at the SBA. The SBA is sick and tired of investigative journalists at NBC, CBS, ABC and CNN making them look bad with their facts and accurate data.

The SBA won’t have to take that anymore. Their new smoke and mirrors policies will take thousands of firms that were guilty of felony federal contracting fraud last year and, presto chango, no more fraud. Siegfried and Roy never came up with a magic trick better than this one.

According to the latest data from the U. S. Census Bureau, 98% of all American firms have less than 100 employees and the average American firm has approximately 12 employees. SBA’s magical powers and policies have turned companies that are 100 times larger than the average American firm into small businesses. SBA mystical, magical policies have turned companies that are 15 times larger than 98% of all U.S. firms into small businesses.

Now the SBA is even adopting a new policy that legalizes fraud. They’re creating a “safe harbor” to protect large firms that have fraudulently misrepresented themselves as small businesses to hijack small business contracts.

If you would like to tell the SBA what you think about their new magical policies to turn big businesses back into small ones, you can send comments to here.

SBA Expected to Release Fraudulent and Falsified Small Business Data Soon

3:30 pm in Uncategorized by Lloyd Chapman

Every year about this time the Small Business Administration (SBA) issues a press release claiming the federal government barely missed the 23% small business contracting goal required by law.

Seal of the Small Business Administration

The real job creators suffer after cuts to the Small Business Administration.

In reality the Obama Administration has never come anywhere close to reaching the minimum 23% small business-contracting goal. Based on all the information I have been able to obtain under the Freedom of Information Act, I estimate legitimate small businesses in America are currently receiving no more than 5% of all federal contracts and subcontracts.

The SBA’s favorite time to release their annual falsified and fabricated small business contracting data is late on a Friday afternoon. Over the last few years they have shown a particular fondness for releasing this information just before a three-day weekend. Since they know the information they are releasing is totally false, they want to release it as quietly as possible to reduce any chance some journalist might possibly question their findings.

As it has been for the last dozen or more years, the SBA will include billions of dollars in federal contracts to many of the largest corporate giants around the world in their small businesses contracting data.

According to the data from the Federal Procurement Data System (FPDS) in 2012, 235 Fortune 500 firms were included in the SBA’s small business contracting data. In 2013, the FPDS shows 175.

Since President Obama has taken office some of the firms that have been included in the SBA’s small business contracting data include Hewlett-Packard, IBM, Oracle, Boeing, Rolls-Royce, British Aerospace and Engineering (BAE), Raytheon, Northrop Grumman, General Dynamics, Chevron, Apple, AT&T, CVS, Verizon, UPS, Bank of America, Home Depot, Target, Microsoft, Wells Fargo, Pepsi, Disney, U.S. Bank, Lockheed Martin, Coca-Cola, Sears, American Airlines, J.P.  Morgan Chase & Co., Citigroup and even more.

If by some miracle some journalist does question the inclusion of hundreds of Fortune 500 firms in the SBA’s small business data, the SBA will no doubt stick to their standard excuses of miscoding, anomalies, computer glitches and simple human error.

Not one journalist in a decade has ever thought to ask anyone from the SBA why these random errors do not have a random pattern of distribution. Errors like miscoding and computer glitches would have a random pattern of distribution like flipping a coin. For every contract to a large business that was accidentally miscoded as a small business contract, there would be a contract to a small business that was miscoded as a large business contract.

Why hasn’t any journalist ever asked anyone at the SBA why these alleged random errors always seem to divert small business funds to big business? Duh!

The Pentagon’s top PR conman, Terry Sutherland or Commander Cover-Up as he is known around Washington, has quietly taken over as SBA Press Office Director.  I wouldn’t be surprised if he tried something really tricky this year. They may even have some unknown SBA staffer quietly releasing the data on a blog. Who knows, they may even try and avoid the traditional confrontation we have every year and sneak the fraudulent and blatantly falsified report out with some new clandestine ploy.  

We play this little game every year. They come out and claim they just missed the 23% goal and I release a barrage of press releases and blogs telling the truth that most of the funds they claim went to small businesses actually wound up in the hands of some of the largest corporate giants in the U.S. and even Europe.

Here are some fun links to my previous blogs and press releases on the SBA from the last few years. Occasionally the mainstream media has joined me in questioning the accuracy of the SBA’s small business data.

The SBA has come up with some new tricks to finally stop the controversy around diverting billions of dollars in small business contracts to big businesses. They are rolling out new policies this month to make thousands of big businesses suddenly become small businesses. It’s like magic but more evil, sinister and fraudulent.

So here we go again. I’m predicting the data will be released very, very soon. I’m guessing they may try something new this year. Commander Cover-Up is very skilled at his job of duping the media. The media also seems very good at being duped.

I guess we will just have to wait and see what type of media dodging tactics the SBA has up their sleeve for this year. Stay tuned!

Video

 

 

 

The Small Business Administration Could Be Closed In The Next 30 Days

3:09 pm in Uncategorized by Lloyd Chapman

I predicted President Obama would resurrect Ronald Reagan’s plan to permanently close the Small Business Administration (SBA) by combining it with the Department of Commerce in November of 2008.

Ronald Reagan

Obama resurrected a Reagan-era plan to close the Small Business Administration.

In addition to being a conspiracy nut, I’m apparently also clairvoyant because that is exactly what the President announced he planned to do in January of 2012.

I think it’s fascinating that not one journalist in America contacted me and asked me how I knew. I’m also astonished that, so far, not one journalist has reported that President Obama’s plan to “streamline government” by combing the SBA and the Department of Commerce is identical to Ronald Reagan’s plan to permanently “close the SBA.”

President Obama’s staff must have seen the TV news reports from 1985, that showed the violent opposition most members of Congress had to Reagan’s plan to close the SBA. Senators like Carl Levin, Lowell Weicker and James Sasser pounded Reagan’s budget director David Stockman as he testified before Congress to push for the closure of the SBA.

Journalists like Peter Jennings, Tom Brokaw, Irvin R. Levine and Ann Compton covered the story for the prime time news.

Because of the overwhelming opposition in Congress and the attention the issue received from the mainstream media, Regan’s plan to close the SBA failed. Thank God it did, as a result over the following three decades, millions of small businesses were allowed to get their start with SBA-backed loans and compete for the 23 percent of all federal contracts that are required by law to be awarded to small businesses.

Apple Inc. and Federal Express are just two household names that got their start with help from the SBA.

Fast forward to 2013.  I have lost count on the number of press releases and blogs I have written trying to sound the alarm about the impending doom for the only agency in government to assist the 28 million small businesses where most Americans work that create over 90 percent of net new jobs.

Not one journalist has reported that President Obama’s plan to close the SBA, or should we say “streamline government” is identical in every way to Ronald Reagan’s plan to close the SBA.

There hasn’t been a word out of a single member of Congress objecting to the pending closure of the tiny federal agency that has helped to launch millions of small businesses. Why?

Here is the single most astonishing thing about this whole issue; I am the only person in the United States of America that has voiced any objection to closing the SBA. Where are all these national organizations that claim to represent the interests of American small businesses? The National Federation of Independent Business (NFIB) claims to be the “voice of small business in America.” So far, their voice has been silent. What about the U.S. Chamber, the American Small Business Chamber of Commerce or the National Small Business Association? They haven’t said a word. No press releases, no TV appearances, no blogs, no nothing. Why?

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Can there be a new Apple Computer or Federal Express Without SBA?

7:52 am in Uncategorized by Lloyd Chapman

 

Apple Computer and Federal Express are just two examples of thousands of firms that got their start with the help of the Small Business Administration (SBA).

President Obama has announced his intention to resurrect Ronald Reagan’s plan to permanently close the SBA by combining it with the Department of Commerce.

When Ronald Reagan caved into pressure from the nation’s largest defense contractors and agreed to try and close the SBA, the mainstream media and Democrats in Congress mounted a formidable opposition. Small business advocates like Senators Carl Levin, James Sasser and Lowell Weicker defeated Reagan’s plan to close the SBA and dismantle all federal small business programs.

Journalists like Peter Jennings, Tom Brokaw, Ann Compton and Irving R. Levine all came to the aid of American small businesses.

As a result, during the last 30 years, millions of small businesses were able to get their start, compete for federal contracts, receive loans, flourish and create millions of net new jobs in America.

According to the latest data from the U.S. Census Bureau, small businesses are responsible for over 90 percent of net new jobs in America, over 50 percent of the private sector workforce, over 50 percent of the GDP and over 90 percent of U.S. exporters. A study by the Kauffman Foundation found 100 percent of all net new jobs in America, since 1980, have been created by small businesses.

Reagan was honest and blunt that he wanted to permanently “close the SBA” by combining it with the Department of Commerce. President Obama has learned from Reagan’s failed attempt to “close the SBA” so he has renamed his SBA closure plan, “streamlining government” and “combining agencies.”

So far, it has been extremely successful in avoiding media attention and not one journalist in America has reported Obama’s plan to close the SBA is identical in every way to Ronald Reagan’s plan to close the SBA.

Without the political opposition and accurate media coverage Reagan faced, President Obama will likely be successful in closing the SBA and bringing an end to the only agency in American history to assist the 28 million small businesses that create up to 100 percent of the nation’s net new jobs.

Without coverage by the mainstream media, by the time most Americans find out the SBA has been shuttered and all federal small business programs are to be dismantled, it will be too late.

If the SBA is closed, millions of future companies like Apple and Federal Express will never exist. Their positive impact on our economy and our society will never be known. The devastating negative impact of the SBA’s closure on our nation’s economy will be felt for generations.

For the latest video from the ASBL, click here.

No Matter Who Takes The Wheel On November 6, Small Businesses Are In For A Bumpy Ride

3:42 pm in Uncategorized by Lloyd Chapman

President Obama has announced on several occasions his desire to essentially close the Small Business Administration (SBA) by combining it with the Department of Commerce. Anyone who has been in Washington long enough to have lunch knows the Department of Commerce is essentially a division of the U.S. Chamber of Commerce. The U.S. Chamber and I aren’t exactly close friends.

President Obama

If Mitt Romney wins this election, he will start talking about closing the SBA before Anne gets the new curtains ordered for their White House bedroom. Despite their unending campaign baloney about investing in the middle class and creating jobs, Republicans, since Ronald Reagan, have had it out for the SBA. Reagan tried closing the SBA twice. The corporate bosses want that 23 percent of the federal contracts allotted to small businesses and they want it now.

President George W. Bush tried to starve the agency to death during his administration by cutting the SBA budget and staff by almost 50 percent. The agency was so understaffed during the Hurricane Katrina aftermath that 2,000 temporary employees had to be hired to assist the storm victims in receiving SBA backed loans to rebuild their businesses. He told his SBA appointee, Administrator Hector Baretto, that he wanted the agency closed by the end of his first term. Some mouthy guy in California launched a PR campaign that made that assignment a lot more difficult than Bush and Barreto had ever expected and the SBA was saved. Barrreto was ultimately fired for his failure to fulfill his mission.

Fortune 500 firms and the U.S. Chamber of Commerce have lobbied to close the SBA for decades. The Small Business Act mandates that a minimum of 23 percent of the total value of all federal contracts be awarded to small businesses. Why do corporate giants want the SBA closed? It’s really quite simple – GREED. The corporate giants that call the shots in Washington DC want every penny the federal government spends to go straight into their pockets.

The fact that small businesses are responsible for more than 90 percent of all net new jobs in America, 50 percent of the private sector work force, more than 50 of the gross domestic product (GDP) and more than 90 percent of all U.S. exporters doesn’t mean a hill of beans to the most ruthless corporate giants ruling the roost in Washington DC.

Let’s take a quick inventory, the U.S. is in the midst of the worst economic downturn in 80 years, small businesses are responsible for the overwhelming majority of net new jobs, and there is only one miniscule federal agency to service the 27 million small businesses where the majority of Americans work.

The corporate-backed, corrupt politicians see this issue a different way. They don’t want to squander a measly $900 million a year on the only federal agency that services the small business that are responsible for the vast majority of net new jobs. Forget the fact that the SBA’s budget is roughly one tenth of one percent of the budget allotted to the Department of Defense (DoD), which outright loses or misplaces almost 10 times as much money a year as it takes to run the SBA. There is obviously no way we can ever balance the budget and cut the deficit without closing one of the smallest agencies in Washington DC, right?

In all seriousness, the best way to determine if a politician is an outright, lying crook and a conman is to just look for one that proposes to close the SBA under the guise of saving money to balance the budget and cut the deficit.

Any honest elected official in Washington would realize that doubling the SBA staff and budget is the best way out of our economic recession. The SBA budget was higher 30 years ago than it is today. We need to reopen the SBA field offices the Bush administration closed. We need to reinvigorate each and every federal program to help our nation’s chief job creators – small businesses.

Hey, I’ve got a wacky idea, why don’t we stop giving federal small business contracts to some of the biggest companies on earth? Every year, for the past seven years, the SBA Office of Inspector General (SBA OIG) has named the diversion of federal small business contracts to corporate giants as the number one management challenge at the SBA.

I know it sounds crazy to quit giving billions of dollars a month in federal small business contracts to Fortune 500 firms but, who knows, it just might help the 27 million small businesses that are the irrefutable engine of economic growth and job creation in this country.

Creative Commons photo by Bernard Pollack on Flickr.