In response to last week's recommendation by the Obama administration that the Small Business Administration be absorbed by the Commerce Department, the American Small Business League released a statement of opposition.
"Based upon the extremely low priority that Obama has placed upon small business issues, it would not surprise me if he tried to completely close the Small Business Administration by combining it with the United States Department of Commerce," said ASBL president Lloyd Chapman.
The recommendation by the National Commission on Fiscal Responsibility and Reform is part of a larger budget plan to save $200 billion by 2015. However, according to the commission chairs, the plan to merge the SBA with the Commerce Department would save merely $1 billion - a tiny fraction of the more than $13 trillion national deficit.
"Not only would combining the SBA with the Department of Commerce save a minuscule amount of money, but it would also do irreparable damage to the nation's middle class economy," added Chapman. "This is not a move to save money. This is a move to try to allow large corporations to keep billions in federal small business contracts."
The California-based ASBL has been calling for an end to the diversion of federal small business contracts to large corporations for some time now. In October, the ASBL claimed that of the top 100 recipients of federal small business contracts, 60 were actually large businesses - a practice that has complicated many entrepreneurs plans to incorporate in California.
Tags : ca, incorporation, small business management
Posted: Nov 16th, 2010