The Small Business Association (SBA) was established in 1953 under (R) Eisenhower with a narrow republican majority in both the House and the Senate. It passed with large bipartisan support. It employs just over 2000 employees and has an annual budget approx. 570million. The SBA performs several functions. They offer a variety of lending programs, entrepreneurial programs and contracting programs. Approximately 23% of prime federal lending contracts are marked for Small Business via the SBA.
The SBA has sustained several attempts to kill the department. It has also suffered a couple demotions from a cabinet position. Surprisingly, it is the Republican Party that wants to kill the SBA and the democrats who elevate it back to cabinet position. Several attempts were made by Reagan, the republicans in the 1990’s and under Bush Jr. to eliminate the SBA.
The Bush administration was found diverting Small Business loans and contracts to Big Business. The American Small Business League uncovered billions of contracts and loans diverted to Fortune 1000 companies. The US Women’s Chamber of Commerce sued the Bush administration for their manipulations within the SBA to divert monies to Big Business. It was in direct violation of the law and the charter of the SBA. The General Accounting Office confirmed the diversions. It is unclear whether this practice continues under Obama. Does anyone have clear info on this point?
We do not know why the republicans want to eliminate a program designed to assist Small Business which in their own words is the job creating engine in America. What we do know is that Big Business wields campaign donation power. I think often of Washington, Hamilton and Lincoln who all understood that men in money positions would abuse their authority. Greed is addicting as heroine.
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