PETALUMA, CA -- (MARKET WIRE) -- 10/15/07 -- The following is a statement by the American
Small Business League:
Several national small business groups have come out in opposition to a new
House bill, H.R. 3567, the Small Business Investment Expansion Act of 2007,
which will give federal small business contracts to billion dollar venture
capital firms.
The vast majority of small business organizations in America have made
statements opposing H.R. 3567. Specifically, small business groups object
to Title V of H.R. 3567, which would amend the Small Business Act and
redefine a small business to include firms that are up to 49.9 percent
owned by venture capital firms.
The existing law requires small businesses to be "independently owned and
operated" to prevent large businesses from misrepresenting themselves as
small businesses. The new definition would remove that protection and allow
multi-billion dollar venture capital firms to own up to 49.9 percent of an
unlimited number of firms and each firm would still qualify as a small
business for federal contracting programs.
Small business groups believe the Small Business Act would effectively be
repealed if H.R. 3567 were to become law. Firms controlled by some of the
nation's largest multi-billion dollar venture capital firms would be able
to dominate the government's small business contracting programs and force
thousands of legitimate small business into bankruptcy.
The American Small Business League launched a national campaign to oppose
the bill before it was introduced. Since taking its stance, the ASBL has
been joined by the Small Business Administration, the U.S. Chamber of
Commerce, the National Association of Government Contractors, the National
Small Businesses Association, and the White House.
"I wish Congressman Altmire had drafted a piece of legislation to stem the
flow of federal small business contracts to Fortune 500 corporations as
opposed to working on a bill that will allow the worlds largest
multi-billion dollar venture capital companies to participate in federal
small business contracting. I think that would be a better use of his
time," President of the American Small Business League, Lloyd Chapman said.
The bill has now been referred to the Senate Committee on Small Business
and Entrepreneurship. Small business groups expect the chair of the
committee Senator John Kerry (D - MA) to kill the bill in the Committee.
Add to DiggBookmark with del.icio.usAdd to Newsvine
Contact:
Christopher Gunn
Communications Director
American Small Business League Email Contact
(707) 789-9575
.gif)
