Obama's Plan to Close the SBA Opposed by Chambers of Commerce, According to the American Small Business League

Marketwired

PETALUMA, CA--(Marketwired - Aug 29, 2013) - A new poll by the American Small Business League (ASBL) has shown that 99 percent of local Chambers of Commerce around the country oppose President Obama's plan to close the Small Business Administration (SBA) or combine it with the Department of Commerce.

The poll was based on calls to over 2,000 local Chambers of Commerce across the United States.

President Obama has proposed essentially closing the SBA by combining it with the Department of Commerce. Ronald Reagan attempted the same tactic to close the SBA permanently by combining it with the Department of Commerce. Democratic members of Congress, led by Michigan Senator Carl Levin, thwarted Reagan's plan to permanently close the SBA.

The overwhelming majority of chambers contacted were surprised to hear that the SBA's budget is .001 percent of the Pentagon's budget. They were also surprised that President Obama's only justification for closing the SBA was to save a mere $300 million a year while he also plans to spend $7 billion to build power plants in Africa under his "Power Africa" project. The $7 billion President Obama plans to spend to build African power plants would fund the SBA at its current budget for a decade and would fund his $300 million a year savings by closing the SBA for over 23 years.

100 percent of the Chambers contacted agreed it was more important to their members to fund the SBA than to build power plants in Africa.

U.S. Census Bureau data indicates that 98 percent of all U.S. firms have less than 100 employees and 89 percent have less than 20 employees. The local Chambers of Commerce around the country acknowledged that was the demographic of their membership.

In the calls to the Chambers, they were also asked if they thought the federal government should be giving small business contracts to Fortune 500 firms. Not surprisingly, 100 percent said no. Since 2003, a series of federal investigations have found, every month, billions of dollars in federal small business contracts were diverted to Fortune 500 firms. The SBA Office of Inspector General referred to the rampant fraud as, "One of the most important challenges facing the SBA and the entire federal government today." 

The ASBL has mounted a national campaign to work with local Chambers to oppose any plan to close the SBA. A complete analysis of the polling data will be released when the campaign is finished next month.

For the latest video from the ASBL, click here.

Contact:
Lacie Schwarz
American Small Business League
707.789.9575
Email Contact
View Comments (0)