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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!

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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.