August 21, 2013
In November of 2008, I predicted President Obama would try and close the Small Business Administration (SBA) by combing it with the Department of Commerce. On January 14, 2012 he proposed exactly that.
He claims he wants to combine the SBA with the Department of Commerce to save $300 million a year. In comparison to the overall federal budget, $300 million is chump change. It's .004 percent of the current Pentagon budget.
The SBA is the only federal agency in our government to assist the 28 million small businesses that are responsible for over 90 percent of the net new jobs, over 50 percent of the private sector work force, over 50 percent of the GDP and over 90 percent of all U.S. exporters.
At the same time Obama is proposing to close the SBA to save a measly $300 million a year, he is also planning to spend over $7 billion of our hard-earned tax dollars to build power plants in Africa under a program called, "Power Africa." Does that make sense to you?
Obama's Power Africa plan would fund his $300 million SBA savings for 23 years and fund that agency's entire budget for a decade.
A recent poll by Gallup found the number one concern for voters was the economy followed by jobs. Since we know from the US Census Bureau data that small business are responsible for over 90 percent of net new jobs, does it make sense to you to close the SBA and spend $7 billion to build power plants in Africa?
So what's the real reason Obama wants to close the SBA? I'll tell you. Every year President Obama has been in office his administration has diverted billions of dollars in federal small business contracts to corporate giants around the world. NBC, CBS, ABC, CNN and the Washington Post have all covered the story.
The Inspector General for the SBA appointed by President Obama has named the diversion of federal small business contracts to corporate giants as the most rampant problem at the SBA.
The real reason Obama wants to close the SBA is to cover up the rampant fraud and abuse that has transpired every day of his administration.
Let me close with this, The Government Accountability Office investigated the SBA and released Report 10-108. It stated, "By failing to hold firms accountable the SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud."
So the real reason Obama wants to close the SBA is not to save a paltry $300 million year. It's to bury the fact his administration has cheated the middle class out of hundreds of billions of dollars.