Obama's first 100 days shortchanges middle class firms

PETALUMA, CALIFORNIA:  “Since 2003, 12 federal investigations have been released that found hundreds of billions of dollars in federal small businesses contracts have been diverted to Fortune 500 firms,” a statement from the American Small Business League said.

Millions of middle class firms have been devastated by these abuses, and thousands of firms have been forced to close their doors.

In Report 5-15, the Small Business Administration (SBA) Office of Inspector General (IG) referred to the wholesale diversion of government small business contracts to large businesses as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today…"

During the presidential campaign, small business owners across the country repeatedly brought the issue to the attention of President Obama and his staff.

On February 22nd, 2008, President Obama responded to their pleas with a campaign promise to end the abuses. President Obama released the following statement: "98 percent of all American companies have fewer than 100 employees. Over half of all Americans work for a small business. Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants."

To date, President Obama has not honored his campaign promise to halt the diversion of government small business contracts to "corporate giants."

The disappointment small business owners initially felt has turned into anger and outrage as President Obama has consistently refused to include any solutions to the problem in any of his small business rescue or stimulus plans.

Even though several federal investigations found large businesses had committed fraud in the form of "false certifications," "improper certifications," and "vendor deception" to illegally receive billions of dollars in federal small business contracts, President Obama has still refused to address the abuses.

The American Small Business League (ASBL) estimates that during the first 100 days of the Obama Administration, middle class firms have lost over $28 billion in government small business contracts to Fortune 500 firms. That number will grow to over $100 billion by the end of the Obama Administration's first year.

Middle class business owners are also not pleased with President Obama's economic policies. According to the U.S. Census Bureau, firms with less than 100 employees are responsible for over 97 percent of all new jobs in America. In addition to his refusal to stop abuses in existing economic stimulus programs for small businesses, President Obama has not directed any of the more than $2.3 trillion in stimulus funds to help middle class firms.