Ken Fenner
Active member
Original Article posted: http://www.smallbusinessnewz.com/topnews/2009/01/05/asbl-critical-of-obama-plan-for-small-businesses
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Creates Loopholes For Venture Capitalists
The American Small Business League is warning that President - elect Barack Obama is preparing to make significant changes in federal contracting laws that will allow some of the nation's wealthiest investors to receive federal contracts earmarked for small businesses.
The League says the new pro-venture capital policy could virtually repeal the Small Business Act for legitimate American small businesses by modifying the federal definition of a small business as "independently owned."
Under the proposed Obama Administration policy, "independently owned" will be changed to include firms that are not independently owned, but are actually controlled by wealthy investors and possibly some of the nation's largest venture capital firms.
If the policy is successfully implemented it could force the average American small business to compete head-to head with firms controlled by wealthy investors for even the smallest government orders for goods and services.
"The easiest and quickest way to stimulate our nation's failing economy is for the government to spend infrastructure funds with America's 27 million small businesses that create all the new jobs and employ most Americans," American Small Business League President Lloyd Chapman said.
"This new Obama policy will do just the opposite and will push our economy closer to a depression by diverting billions of dollars in federal funds away from middle class America and into the hands of small number of wealthy investors that backed Obama."
_______________________________________________________
Creates Loopholes For Venture Capitalists
The American Small Business League is warning that President - elect Barack Obama is preparing to make significant changes in federal contracting laws that will allow some of the nation's wealthiest investors to receive federal contracts earmarked for small businesses.
The League says the new pro-venture capital policy could virtually repeal the Small Business Act for legitimate American small businesses by modifying the federal definition of a small business as "independently owned."
Under the proposed Obama Administration policy, "independently owned" will be changed to include firms that are not independently owned, but are actually controlled by wealthy investors and possibly some of the nation's largest venture capital firms.
If the policy is successfully implemented it could force the average American small business to compete head-to head with firms controlled by wealthy investors for even the smallest government orders for goods and services.
"The easiest and quickest way to stimulate our nation's failing economy is for the government to spend infrastructure funds with America's 27 million small businesses that create all the new jobs and employ most Americans," American Small Business League President Lloyd Chapman said.
"This new Obama policy will do just the opposite and will push our economy closer to a depression by diverting billions of dollars in federal funds away from middle class America and into the hands of small number of wealthy investors that backed Obama."