Senators Introduce Bipartisan Legislation to Fight Fraud in Government Contracting Programs

Senators Olympia J. Snowe [R-Maine, pictured], Mary Landrieu [D- La.], Scott P. Brown [R-Mass.], Jeff Merkley [D-Ore.], and Mike Enzi [R-Wyo.], have introduced bipartisan legislation to combat contracting fraud at the U.S. Small Business Administration [SBA]. Their initiative comes on the heels of several vulnerabilities and abuses in nearly all of SBA’s contracting programs, as identified in multiple reports by the nonpartisan Government Accountability Office [GAO].

"Exercising thorough oversight to ensure SBA’s contracting programs are efficient, effective, and accountable is a top priority," said Sen. Snowe, ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship. "This legislation is a critical step towards ensuring all of our nation’s small businesses compete fairly in the federal marketplace."

Citing a March 12 Washington Post report that "Government officials were not monitoring contracts for compliance with rules," Sen. Snowe called SBA’s current oversight efforts deficient. "As I told the deputy administrator of the SBA at a recent Small Business Committee hearing," she noted, "the ultimate authority for monitoring fraud lies with the SBA when it comes to government management of hard-earned taxpayer dollars."

"When ineligible firms are awarded federal government contracts through fraudulent means," declared Senate Small Business Committee Chair Sen. Landrieu, "this reduces the number of opportunities available to honest, qualified small businesses.

"Government contracts are perhaps one of the easiest and most inexpensive ways the federal government can help immediately increase sales for America’s entrepreneurs, giving them the tools they need to keep our economy strong and create jobs. This legislation gives the SBA and the inspector general the tools necessary to combat fraud. We intend for the SBA to hold firms accountable."

"With our nation facing record debt and deficits, it is absolutely critical that taxpayer dollars are used judiciously to ensure that small-business contracting programs benefit the rightful recipients," said Sen. Brown, a member of the Senate Small Business Committee. "This bipartisan legislation is a strong step toward ensuring that our contracting programs are operating effectively and efficiently."

"Small businesses are the backbone of our community and the drivers of economic growth," said Sen. Merkley. "The programs that support and assist them should not be diverted or diluted because of waste, fraud of abuse. This bill will help refocus SBA programs like a laser on the needs of our small-business owners."

"We have a situation now where bad actors are snapping up opportunities that would greatly benefit legitimate small businesses," added Sen. Enzi. "This bill would help ensure that those who provide real jobs and quality goods and services are the ones getting the contracts."

Specifically, the Small Business Contracting Fraud Prevention Act of 2011 [S. 633] would provide a comprehensive oversight framework within SBA to execute effective certification, surveillance and monitoring, as well as robust enforcement of its entire contracting portfolio. The bill would also increase criminal penalties for businesses awarded contracts through fraudulent means.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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Business Proposals: It's All About Trust. ^AF

LeMieux, Landrieu, Senate Democrats Fight to Include Credit Relief for Small Businesses

Last night, United States Senator Mary L. Landrieu [D-La.], chair of the Senate Committee on Small Business and Entrepreneurship, and Sen. George LeMieux [R-Fla.] -- along with Sens. Barbara Boxer [D-Cal.], Maria Cantwell [D-Wash.], Amy Klobuchar [D-Minn.], Jeff Merkley [D-Ore.] and Patty Murray [D-Wash., pictured] -- introduced an amendment, S. Amdt. 4500, The Small Community Business Lending Fund, designed to increase capital to small businesses struggling to access lines of credit to hire workers, improve their infrastructure, and grow their businesses.

The LeMieux-Landrieu amendment will inject $30 billion through healthy community banks into the small-business economy. This addition to the Small Business Job Creation Act of 2010 is estimated to save taxpayers $1.1 billion over 10 years.

"Like the rest of our nation, Florida’s economy needs help," said Sen. LeMieux. "Unemployment is high and Floridians want to get back to work. Small-business owners want to grow their operations and rehire workers.

"One of the biggest hurdles is the ability of businesses to secure loans or investors. This bill primes the engine for investment. It is what we need, and it will help move our economy in a positive direction."

Sen. Landrieu agreed. "Small business in America needs a champion in Washington right now," she said. "While many of my colleagues on the other side of the aisle choose to hide behind partisan rhetoric, we have been working to make life a little easier for the 27 million small businesses across the country.

"Contrary to what some are saying about this lending fund, this program is not to bail out the big banks; it is for the small businesses across this country. We are simply using the healthy community banks as a conduit to get money flowing to these businesses. I appreciate Sen. LeMieux’s commitment to help small businesses, and I urge my colleagues to support this legislation because it is the right thing to do."

"Small businesses are the engines of job creation, and credit is the oil to keep the engine running," Merkley noted. "The Small Business Lending Fund will help small businesses put America back to work. This amendment will give every Senator a chance to show whether they stand for small businesses and more jobs, or prefer to play politics.”

"When are we going to stand up for small businesses in America -- who have had trouble getting access to this capital, who have been penalized?" Sen. Cantwell declared in remarks on the Senate floor. "What they want to know is, if they didn’t cause this mess, how is it that when it came to the big banks, everybody said, 'Yup, here’s the opportunity for you.' Everybody said, 'Here’s the keys to the Treasury. Here’s all the money.'

"But now, when it comes to making sure that community banks are lending to small businesses, people are saying, 'No, Main Street doesn’t have the same priority as Wall Street.

"Small business is asking for an effective lending program through the community banks; that’s all they’re asking for. And we gave Wall Street a bailout -- without any terms and conditions for repayment."

"Small businesses are the heart and soul of so many of our communities, and our economy is strongest when they have the capital they need to keep their doors open and add jobs," said Sen. Murray. "This economic downturn has hit small businesses hard, and we owe it to Main Streets across America to make sure they have access to the capital they need to not only survive, but thrive."

"In an increasingly competitive global economy, it is important to ensure that small- and medium-sized businesses have access to information and tools to capitalize on potential opportunities in foreign markets," Sen. Klobuchar said. "Small businesses are the engine of job creation in this country, and by increasing exports, they can lead the way to economic recovery."

The Small Community Business Lending Fund has been endorsed by several organizations -- including the Independent Community Bankers of America, the American Bankers Association, the National Small Business Association, the National Association for the Self-Employed, Small Business Majority, the National Bankers Association, plus the Conference of State Bank Supervisors, among others.

A complete summary of the LeMieux-Landrieu Amendment can be viewed by going to: http://bit.ly/Senate4500.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business & Entrepreneurship
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