Obama to Axe Small Business Programs: Lloyd Chapman Reports
Wednesday, October 5th, 2011
Alex talks with the president and founder of the American Small Business League, Lloyd Chapman, about the Occupy Wall Street protests now entering a third week. Mr. Chapman and Jones will also talk about the economy and how Obama’s policies are hurting small business in America.
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Petaluma, Calif. – Friday the Obama Administration set a rule change in motion to eliminate federal contracting programs for minority-owned small businesses. A shocking move since, in the midst of one of the worst recessions in U.S. history, unemployment has hit minority groups especially hard. According the U.S. labor department, the jobless figure for African Americans is almost twice that of overall unemployment (16.7 percent).
The proposed rule change is aimed at ending federal programs that establish, for the Department of Defense (DOD), NASA and the U.S. Coast Guard, a five percent federal contracting goal with small socially and economically disadvantaged businesses.
Around 35 percent of the U.S. population is made up of ethnic minorities, and 5.8 million businesses are minority-owned. The American Small Business League (ASBL) estimates that if the policy is implemented, minority-owned small businesses could lose close to $50 billion in federal contracts annually, which could lead to the loss of millions of jobs.
This is the latest in several instances of abuse of federal small business contracting programs. In addition to attempts to eliminate minority-owned federal contracting programs, the Obama Administration has been criticized for diverting billions of dollars a month in federal small business contracts to Fortune 500 firms and other large businesses worldwide. Some large companies that have received federal small business contracts include Lockheed Martin, British Aerospace, Rolls-Royce and Italian defense giant Finmeccanica SpA.
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