Upcoming Obama Conference Could Be Bad News for Small Business, According to the American Small Business League

PETALUMA, Calif.--(Business Wire)--
The following is a statement by the American Small Business League:

On Wednesday, October 21, President Barack Obama announced plans to convene a
conference of "regulators, congressional leaders, lenders and small businesses
to determine what additional steps we can take to get credit flowing to small
businesses that want to expand and create more jobs."
(http://www.asbl.com/documents/Remarks_by_obama_on_small_business_initiatives.pdf)

Small business groups like the American Small Business League (ASBL) are
concerned the real agenda of the upcoming Obama Administration small business
conference will be to adopt legislation and policy that will change the
definition of a small business and divert federal small business contracts to
wealthy venture capitalists.
(http://www.vcjnews.com/story.asp?sectioncode=26&storycode=46450)

The Small Business Act requires that a small business be "independently owned."
Firms that are owned and controlled by venture capitalists are not considered
small businesses in federal small business contracting and grant programs.

The venture capital industry, led by the National Venture Capital Association
(NVCA) has spent millions of dollars lobbying members of Congress to change the
current definition of a small business to allow even billionaire venture
capitalists to participate in federal small business contracting programs.
(http://maplight.org/map/us/interest/F2500)

During his 2003 race for a seat in the U.S. Senate, President Obama developed
deep ties within the venture capital industry. Since then, President Obama has
received significant contributions from the NVCA and its members.

Both the House and Senate small business committees have attempted to pass
legislation that could destroy millions of legitimate small businesses by
diverting billions of dollars in federal small business contracts to wealthy
venture capitalists that have contributed millions of dollars to key democratic
leaders in Congress.

House Small Business Committee Chair Nydia M. Velázquez (D - NY) introduced H.R.
3567, Small Business Investment Expansion Act of 2007, which would have changed
the definition of a small business for all federal programs to include firms
owned and controlled by venture capitalists. In a story titled, "Velázquez
Champions VC Firms at Small Business Expense," by Keith Girard, AllBusiness.com,
Velázquez was accused of "quarterbacking the venture capital industry's
efforts."
(http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)

"I predict that President Obama will try to cheat legitimate small businesses by
diverting billions of dollars in federal small business contracts to his wealthy
venture capitalist contributors under the guise of 'increasing access to capital
for small businesses,' " ASBL President Lloyd Chapman said.

American Small Business League
Christopher Gunn, 707-789-9575
Communications Director
cgunn@asbl.com

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