Obama Over Estimates Support of Small Business

By US Daily Review Staff. Source: the American Small Business League.

The Obama Administration likes the boast a warm relationship with small business, but an organization that works as an advocate of such enterprises has a decidedly different perspective.

The following is a statement by the American Small Business League:

“You won’t see President Obama mention the small business numbers on television because he knows that most of the money his administration claims went to small businesses actually went to some of the biggest companies in the world”

One day before the Fourth of July holiday the Obama administration released the fiscal year (FY) 2011 Small Business Procurement Scorecard, which indicates the percentage of federal contract dollars awarded to small businesses. Federal law requires that a minimum of 23 percent of the total value of all federal contracts be awarded to small businesses. The administration reported that federal agencies awarded only $91.5 billion to small businesses, which amounts to 21.7 percent of prime contract dollars.

In stark contrast to the SBA report, an analysis of federal data by the American Small Business League (ASBL) found that, in reality, small businesses received only a small fraction of that $91.5 billion.

According to the ASBL’s analysis of data from the Federal Procurement Data System (FPDS), just among the top 100 companies that received the largest dollar amount in federal small business contracts, 72 were large. Some of the large companies the Obama administration has awarded federal small business contracts to include Lockheed Martin, AT&T, General Electric, Apple and Italian defense giant Finmeccanica.

The federal government has historically released its scorecard at a time when it will generate little scrutiny from the media and watchdog organizations like the ASBL. In this case, that opportune time was one day before a national holiday. There was not a national press release or a White House press conference to announce the data. In fact, President Obama has not mentioned it.

“You won’t see President Obama mention the small business numbers on television because he knows that most of the money his administration claims went to small businesses actually went to some of the biggest companies in the world,” said ASBL President Lloyd Chapman. “He also knows that in February of 2008 he promised to end these rampant abuses when he said, ‘It’s time to end the diversion of federal small business contracts to corporate giants.’ What’s stunning to me is that this will go completely unreported in the mainstream media. That’s why these rampant abuses have gone on for more than a decade.”

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.

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