An Open Letter to House Speaker Nancy Pelosi
From American Small Business League President
September 02, 2010 07:58 AM Eastern Daylight Time
PETALUMA, Calif.--(EON: Enhanced Online News)--The following is a statement by the American Small
Despite at least $3 trillion in government spending aimed at stimulating the economy, a multitude of economic
indicators now show that the economy is poised to slip into a double dip recession. I believe, as I am sure you do,
that we need to bring down unemployment in order to stimulate the economy. To date, none of the actions taken by
Congress or the Obama administration have met that need.
As you may know, small businesses create the overwhelming majority of net new jobs in America. According to the
U.S. Census Bureau, businesses with less than 20 employees create over 97 percent of net new jobs.
(http://www.inc.com/news/articles/200708/data.html) Statistics from the Small Business Administration (SBA) Office
of Advocacy indicate that small businesses create over 90 percent of all net new jobs.
(http://www.sba.gov/advo/research/rs359.pdf) Any effort to create jobs must be focused on small businesses.
One of the most effective economic stimulus programs ever passed by the U.S. Congress was the Small Business
Act of 1953. The Small Business Act requires that 23 percent of the total value of all government contracts must go
to small businesses. This makes perfect sense, considering the important role small businesses play when it comes to
the U.S. economy and job creation.
Since 2003, over a dozen federal investigations have found that most small business contracts actually go to Fortune
500 firms, European conglomerates and thousands of other large businesses around the world. Some of those
companies are: Lockheed Martin, Boeing, British Aerospace (BAE), Rolls-Royce, Raytheon, Dell Computer,
General Electric, Honeywell International Corporation,