Obama Jobs Bill and Task Force Ignore Major Challenge for Small Businesses, According to the American Small Business League

/PRNewswire/ -- The following is a statement by the American Small Business League:

Neither the Obama Administration's Jobs Bill nor the recommendations released on Wednesday by President Obama's Small Business Task force contain any language that will stop the federal government from giving billions of dollars a month in small business contracts to Fortune 1000 firms.

During his campaign, President Obama promised to end the diversion of federal small business contracts to Fortune 1000 firms and stated, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

Since 2003, over a dozen federal investigations have found corporate giants from around the world as the actual recipients of billions of dollars in federal small business contracts.

Some of the firms that have received government small business contracts include: Rolls-Royce, British Aerospace (BAE), Lockheed Martin, Boeing, Northrop Grumman, L-3 Communications, SAIC, Titan Industries, Raytheon, Dell Computer, Xerox, French firm Thales Communications, Italian firm Finmeccanica SpA, and Ssangyong Corporation headquartered in Seoul, South Korea. Textron, a Fortune 500 firm, received over $775 million in federal small business contracts in a single year.

In 2005, the Small Business Administration Office of Inspector General (SBA IG) referred to the diversion of federal small business contracts to corporate giants as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)

In Report 5-16, the SBA IG found large businesses had received federal small business contracts illegally by making "false certifications" and "improper certifications." The SBA Office of Advocacy found large businesses had received small business contracts illegally through "vendor deception." (http://www.asbl.com/documents/05-16.pdf)

Section 16(d) of the Small Business Act prescribes a penalty of up to ten years in prison for firms that misrepresent themselves as small businesses to illegally receive federal small business contracts.

As opposed to offering legislation and policy that will end the diversion of federal small business contracts to corporate giants, language in the "jobs bill" could actually protect large businesses that misrepresent themselves to illegally receive federal small business contracts.

Section 1341, paragraph 4 of H.R. 5297, Small Business Jobs Act, creates a legal loophole that could allow fraudulent firms to avoid prosecution and penalties by claiming they received federal small business contracts through, "unintentional errors, technical malfunctions, and other similar situations."

If the bill becomes law the American Small Business League (ASBL) plans to challenge the language in section 1341 in federal court.

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TIO Networks to Launch Self-Service Bill Payment Program in Georgia

(BUSINESS WIRE)--TIO Networks Corp., (TSX.V:TNC), North America’s leading multi-channel expedited bill payment processor, and electric utility Georgia Power today announced the launch of a self-service automated bill payment program in select retail stores in metropolitan Atlanta. The self-service, cash-accepting automated kiosks will enable Georgia Power customers to make bill payments via TIO’s expedited bill payment processing system.

The kiosks are expected to be fully operational this winter. Using the touchscreen interface, customers will navigate through bill-pay applications in either English or Spanish, and insert cash directly into self-serve automated kiosks to securely complete transactions. All payments will be posted immediately to the customers’ account. The customers will have the option to either print or forward receipts to an email address of their choice. Users will pay a $2 convenience fee per transaction.

“We are thrilled to team up with Georgia Power in offering customers the convenience of real-time bill payment services,” said Hamed Shahbazi Chairman & CEO of TIO Networks Corp. “Our bill payment service has proven to be a hit with Utilites throughout the United States in providing their customers with last minute bill payment options to avoid late-fees and disruption of essential services.”

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