September 20, 2010
The Senate recently passed a small business bill that will increase lending to small firms. The hope is that the boost in small business loans will help create more jobs within the private sector. The Obama administration has long touted the importance of bolstering loans to small firms, as many analysts have suggested that they have the potential to be major job creators. When Barack Obama was campaigning in February 2008, he announced his intentions to try to and help remove large firms from federal small business contracting.
The House of Representatives is due to approve the bill later this week and the American Small Business League (ASBL) recently spoke about the importance of Congress adding language into the legislation that would halt the diversion of federal small business funds to corporate giants.
"If President Obama wants to create jobs, it's real simple; quit giving small business contracts to Fortune 1000 firms and large businesses. He could do that with one or two sentences in the jobs bill," ASBL President Lloyd Chapman said.
The ASBL cites that information released by the Obama administration reveals that 65 percent of the funding given to the top 100 recipients of federal small business contracts went to large businesses instead of small firms.
Small businesses are a large part of American employment. According to the Small Business Association, small firms have generated 64 percent of new positions over the past 15 years. Additionally, these employers account for 44 percent of the total private payroll in the U.S. The high-tech industry, which is expected to increase significantly over the next few years, is also involved with the field, as small businesses higher 40 percent of technology workers.