PETALUMA, Calif.--()--The following is a statement by the American Small Business League:
“It is time to end the diversion of federal small business contracts to corporate giants.”
Dear Mr. Lehrer,
In the interest of America’s 28 million small businesses, I would like you to consider asking a question of President Obama and Mitt Romney.
Federal law requires that a minimum 23 percent of the total value of all federal contracts be awarded to small businesses. Based upon U.S. Census Bureau data, small businesses create more than 90 percent of all net new jobs. Small businesses are responsible for more than half of the gross domestic product, half the private sector workforce, and more than 90 percent of all U.S. exporters are small businesses.
Unfortunately, since 2003, a series of federal investigations have found that a major portion of federal small business funds have been diverted to Fortune 1000 firms in the U.S. and some of the biggest companies in the world. Under the Obama administration, some of the large companies that have received federal small business contracts include Lockheed Martin, Raytheon, Boeing, AT&T, Office Depot, Italian defense giant Finmeccanica and Russian state-owned defense broker Rosoboronexport.
During President Obama’s 2008 campaign he recognized the magnitude of the problem and released a statement saying, “It is time to end the diversion of federal small business contracts to corporate giants.” Unfortunately, every day that he has been president, the federal government has continued to divert federal small business contracts to large businesses.
The simplest, most cost-effective way to create jobs and stimulate the economy would be to stop giving federal small business funds to the Fortune 1000 firms that have created few, if any, net new jobs.
This unfortunate situation is going to continue unless someone such as yourself asks about it. The presidential debates provide the perfect opportunity to ask President Obama and Mitt Romney where they specifically stand on small business. Will the President in 2013 continue to award federal small business contracts to large businesses instead of the nation’s chief job creators?
In Report 5-15, the Small Business Administration Office of Inspector General called the diversion of federal small business contracts to large businesses, “One of the most important challenges facing the Small Business Administration (SBA) and the entire Federal government today.”
The NBC Bay Area Investigative Unit recently found hundreds of millions of federal small business contracts being diverted to large businesses including, Oracle and IBM.
Mr. Lehrer, if you want to help create jobs, stimulate the economy and put an end to this decade-old contracting scandal, please ask President Obama and Mitt Romney if they will stop giving federal small business contracts to corporate giants.
American Small Business League