Obama Administration's Funds for Connecticut, Missouri, and Vermont to Spur at Least $534 Million in New Small-Business Lending, Help Create Jobs

Today, the U.S. Department of the Treasury announced approval of State Small Business Credit Initiative [SSBCI] applications from Connecticut, Missouri, and Vermont. The planned use of SSBCI funds by these states will help create new jobs, and is expected to spur more than $534 million in additional small-business lending. The SSBCI program, which supports state-level small business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law last fall.

"These critical funds will help small businesses access the capital they need to expand their operations, create new jobs, and continue supporting our nation’s economic recovery," said Treasury Secretary Tim Geithner [pictured]. "Public-private lending partnerships, such as the State Small Business Credit Initiative, have a proven track record of success, and I’m pleased that this funding is on its way to support economic growth in these states."

Under the SSBCI, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Accordingly, the $1.5 billion federal funding commitment for this program overall is expected to result in at least $15 billion in additional private lending nationwide.

Details on the applications approved today -- which the states expect will generate a cumulative total of at least $534 million in new small-business lending in Connecticut [$133 million], Missouri [$269 million], and Vermont [$132 million] -- are included below.

Geithner announced the approval of this latest wave of SSBCI applications during a conference today at the Treasury Department entitled, "Access to Capital: Fostering Growth and Innovation for Small Companies." The conference brings together policymakers, entrepreneurs, investors, academics, and other market participants to explore how both the public and private sectors can help promote access to capital at each stage of growth for a small business -- from seed capital, to growth equity, to accessing the public markets.

Treasury has previously approved funding for SSBCI programs in California, Michigan, and North Carolina. Additional applications are expected to be approved in the coming weeks. For more information about the SSBCI, please visit http://1.usa.gov/SSBCI.

Connecticut: At Least $133 Million in New Small-Business Lending
With SSBCI approval of Connecticut’s application, can access up to $13.3 million in SSBCI funding -- which Connecticut expects to generate more than $133 million in new small-business lending in the state.

"Connecticut's economic recovery is driven by small businesses and their strong plans for growth," said Connecticut Governor Dannel P. Malloy. "We need to ensure they have the capital necessary for hiring, purchasing of machinery and equipment, and expansion of facilities in our state. In partnership with the banks and the Connecticut Development Authority, Connecticut's small-business owners will now have more resources for that growth."

Connecticut’s approved plan dedicates its $13.3 million in SSBCI funding to support its Capital Access Program [CAP], which provides loan portfolio insurance to encourage private financial institutions to lend to creditworthy small businesses. Connecticut has administered its CAP for more than 19 years. During this period, it has provided portfolio insurance for about 630 enrolled loans, totaling over $53.4 million -- resulting in the creation of, or saving of, 6,120 jobs.

Missouri: $269 Million-Plus in New Small-Business Lending
With SSBCI approval of Missouri’s application, Missouri can access up to $26.9 million in SSBCI funding, which it expects to generate more than $269 million in new small-business lending in the state.

"Along Main Streets in every corner of Missouri, small businesses are a critical force for creating jobs and growing our economy," Missouri Gov. Jay Nixon said. "These new resources will help Missouri entrepreneurs grow their operations, and turn their dreams into bricks and mortar.

"We appreciate the leadership shown by President Obama and Secretary Geithner in providing these resources for our state, and we will invest these tools wisely and strategically in businesses that will transform Missouri’s economy for the 21st Century."

Missouri’s approved plan dedicates $16.9 million of the state’s SSBCI funding to establish the high-tech Missouri IDEA Seed and Venture Capital Funds [IDEA Funds]. IDEA stands for Innovation, Development and Entrepreneurial Advancement.

The Missouri IDEA Funds promote the formation and growth of businesses that engage in the transfer of science and technology into job creation. The funds provide financing to eligible businesses through four components that correspond to the four stages of venture growth: 1] pre-seed capital stage financing; 2] seed-capital stage financing; 3] venture-capital stage financing; and 4] expansion-stage debt.

Collectively, these four components will provide financing opportunities throughout the process that entrepreneurs call the "continuum of capital." In this way, the funds will support new venture formation and growth all the way from research and development to commercialization.

Missouri’s approved plan also dedicates $10 million of SSBCI funding to the Grow Missouri Loan Participation Fund. That program supports the formation and growth of businesses in the industrial, commercial, agricultural, and recreational sectors. It provides loans of up to $3 million to businesses with under 500 employees to help attract new enterprises and expand existing companies.

Vermont: More Than $132 Million in New Small-Business Lending
With SSBCI approval of Vermont’s application, Vermont can access up to $13.2 million in SSBCI funding, which it expects to generate more than $132 million in new small-business lending in the state.

"This $13.2 million in federal small-business funding is terrific news for Vermont," declared Vermont Governor Peter Shumlin, "and it would not have been possible without the strong advocacy efforts of our Congressional delegation.

"We thank Sen. Patrick Leahy, Sen. Bernie Sanders, and Congressman Peter Welch for their efforts, and also thank the U.S. Department of the Treasury for this well-timed award. With the help of Vermont’s private-sector leverage, these federal funds will go far, giving our small businesses the critical boost they need to create jobs for Vermonters."

Vermont’s approved plan dedicates $1 million of the state’s SSBCI funding to support its Financial Access Program [FAP], which provides loan portfolio insurance to encourage private financial institutions to lend to creditworthy small businesses.

The remaining $12.2 million is allocated to three additional programs:

* Vermont has allocated a total of $5.9 million to its Commercial Loan Participation Program, which provides financing for the purchase of land; construction and renovation of facilities; and purchase and installation of equipment for eligible projects.

* Vermont has allocated $3.0 million to its Technology Loan Participation Program. This initiative supports loans to early-stage firms, primarily in the information technology and bioscience sectors.

* Vermont has also allocated $3.3 million to its Small Business Loan Program, which finances smaller commercial businesses’ fixed asset and working capital needs.

GoodBiz113's Take
Once again, the Obama Administration has taken bold and positive steps to fuel small-business growth and create jobs. Current and would-be small-business owners in Connecticut, Missouri and Vermont -- and their myriad stakeholders -- are fortunate that Secretary Geithner and his advisers have exercised their fiduciary pragmatism and wide-angle vision to promote far-reaching entrepreneurship and economic development in their states.

SOURCES: Connecticut Development Authority, Missouri Department of Economic Development, U.S. Department of the Treasury, Vermont Economic Development Authority

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SBA Chief Backs Repeal of ‘Burdensome’ 1099 Reporting Requirements on Small-Business Transactions

In an open letter to small-business owners, SBA Administrator Karen Mills [pictured] described requirements that small businesses report all transactions greater than $600 as "burdensome," and called for their repeal. Mills said the reporting requirements in the Affordable Care Act, which were to have begun in 2012, add up to "too much paperwork, too much filing."

The text of the letter, which is posted on the SBA website at http://www.sba.gov/1099letter/, follows:

Dear Small Business Owner,

I’m writing to update you on the progress that we have made regarding concerns stemming from the expanded 1099 reporting requirement in the Affordable Care Act, which could affect small businesses starting with 2012 purchases and 2013 filings.

The SBA and the Administration support the Small Business Paperwork Relief Act [introduced by Senator Baucus], which would repeal this provision.

As President Obama said on Nov. 3: "...The 1099 provision in the health-care bill appears to be too burdensome for small businesses. It just involves too much paperwork, too much filing. It’s probably counterproductive." Our support for the Small Business Paperwork Relief Act also follows the Administration’s support in September for Senate Amendment 4595 [offered by Senator Bill Nelson], which would have relaxed the reporting requirement.

All businesses that pay another individual or business $600 or more for goods or services starting in 2012 will be required to issue 1099s. The unintended consequence of a potential paperwork burden resulting from this provision quickly came to light, and we immediately began working across the Administration to reduce the burden of these potential future reporting requirements, as I noted in a letter to small businesses in May. We gathered feedback and comments from the small-business community through roundtables, forums, and other feedback mechanisms involving outreach from the SBA, the Treasury Department, the I.R.S. and others.

Importantly, the repeal of this provision through the Small Business Paperwork Relief Act will not adversely affect the Affordable Care Act, which provides important health-care benefits to millions of Americans. Small businesses are already taking advantage of the new tax credits for providing health insurance to employees this year, and future benefits -- such as the insurance exchanges in 2013 -- will provide small businesses with more negotiating power and reduced administrative costs.

Thank you for the input and feedback that many of you have provided on the impact that the expanded 1099 reporting requirement could have on your business. Overall, with your help, we will continue to ensure that America’s entrepreneurs and small-business owners operate in an environment not burdened by excessive regulation, allowing you to continue doing what you do best: grow businesses, create jobs and lead America’s economic recovery.

Sincerely,

Karen Mills
SBA Administrator

* * * * * * * * * *

GoodBiz113's Take
Once again, Administrator Mills [a seasoned entrepreneur and venture capitalist] and the Obama Administration have exercised their common-sense, just-get-out-of-the-way leadership power to simply let small businesses, well, tend to business -- i.e., rather than get mired in the bureaucratic and redundant processes of yore. Their hands-off management style and streamlining-to-the-max ways are refreshing and welcome, indeed.

SOURCE: U.S. Small Business Administration
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Sens. Klobuchar and Franken Join Call for Help to Small Businesses; Letter to Treasury Secretary Tim Geithner Signed by 18 Democratic Senators

This week, Sens. Amy Klobuchar [D-Minn.] and Al Franken [D-Minn., pictured] joined 16 of their colleagues to call on U.S. Treasury Secretary Timothy Geithner to take immediate steps to utilize TARP funding to stabilize community banks and improve credit availability for small businesses.

“The American economy won’t recover until our small businesses recover,” said Sen. Klobuchar. “Small businesses are the engines that drive job creation in this country. Opening up credit and expanding into new markets will spur economic growth and strengthen our economy.”

“Credit for small businesses is crucial to the American economy and essential for getting us out of this recession,” said Sen. Franken. “Minnesota businesses shouldn’t continue to suffer because banks on Wall Street are unable to manage their balance sheets.”

Joining Sens. Klobuchar and Franken in sending the letter were Senators Patty Murray [D-Wash.], Patrick Leahy [D-Vt.], Carl Levin [D-Mich.], Jeff Bingaman [D-N.M.], Tom Harkin [D-Iowa], Barbara Mikulski [D-Md.], Herb Kohl [D-Wisc.], Tim Johnson [D-S.D.], Bill Nelson [D-Fla.], Debbie Stabenow [D-Mich.], Maria Cantwell [D-Wash.], Ben Cardin [D-Md.], Sherrod Brown [D-Ohio], Jean Shaheen [D-N.H.], Jeff Merkley [D-Ore.], and Rolland Burris [D-Ill.].

Following, is the full text of the letter sent to Secretary Geithner:

* * *

February 3, 2010

The Honorable Timothy Geithner
Secretary
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220

Dear Secretary Geithner:

We write today to express our deep and growing concern about the deteriorating condition of community banks and the lack of credit availability for small businesses across the United States.

Community banks play a significant role in providing credit to businesses in communities throughout the country. They provide approximately one third of all loans under $1 million and half of all loans under $100,000.

Despite the return to profitability for most of the large, Wall Street banks that received the lion’s share of public assistance under Troubled Asset Relief Program [TARP], the survival of hundreds of small, community banks remains in question. With considerable exposure to future losses on loans tied to real estate markets -- both residential and commercial -- we call on you to take immediate steps to dedicate more attention and resources from TARP to stabilize this critically important segment of the banking industry.

According to data provided by the Federal Deposit Insurance Corporation [FDIC], 148 banks have failed since 2008. These failures impose significant costs on the Deposit Insurance Fund [DIF] and have far-reaching economic ramifications on the communities and businesses they serve.

The continued existence and steady growth of hundreds of billions of dollars in non-performing loans is placing further strain on banks across the country; 552 institutions were on FDIC’s “Problem List” as of the agency’s publication of its Quarterly Banking Profile for the Third Quarter of 2009.

This ominous overhang of impaired assets is necessitating that banks restrict lending and build capital to protect against further losses. Indeed, according to data released by the Federal Reserve, credit has continued to contract since 2008. The tight credit environment -- particularly impacting households and small businesses -- continues to undermine the effect of aggressive monetary and fiscal policies put in place to accelerate economic recovery and job growth.

Small businesses remain the real engine behind job growth in the U.S.; over the past 15 years, over 64 percent of all new jobs were created by small businesses. However, under the weight of the economic recession and significantly reduced consumer demand, many small businesses have been forced to adjust their cost structure, including eliminating jobs. With credit-card lines and other forms of revolving credit being cut, those businesses that are trying to maintain their workforce are finding it increasingly difficult -- and, in some cases, impossible -- to access the liquidity they need to weather through this downturn.

Although recent economic indicators show the economy is slowly beginning to stabilize, small businesses continue to suffer. This is a key underpinning to the weak labor market and creating a drag on our efforts to more quickly reduce real unemployment, which remains above 10 percent. To help establish real, sustainable economic recovery, we must take new, decisive action that addresses the trend of declining credit availability head-on. Failure to do so may result in a heightened risk of a prolonged economic downturn similar to that experienced by Japan through the 1990’s.

Existing programs created by the Treasury to address the plight of community banks and improve credit to small businesses have unfortunately had little impact to-date. Therefore, we have developed new approaches that can improve existing programs to strengthen community banks and have put forth a number of new proposals to improve the availability of credit for small businesses. We strongly believe these ideas provide new strategies and opportunities to take precious taxpayer resources away from programs that have largely benefitted the Wall Street firms that bear a great deal of responsibility in bringing about the financial and economic crisis, and redirect them to programs that can help bring back jobs and restore prosperity in our communities.

Strong, decisive action must be taken immediately to reassess the full range of options where public resources, including TARP, can better help address the economic crisis and strain being felt by American families and businesses on Main Street. We look forward to working together with you in this effort, because it is integral to establishing the foundation necessary to support a swift and sustained economic recovery to the future.

Sincerely,

Senators Patty Murray [D-WA], Patrick Leahy [D-VT], Carl Levin [D-MI], Jeff Bingaman [D-NM], Tom Harkin [D-IA], Barbara Mikulski [D-MD], Herb Kohl [D-WI], Tim Johnson [D-SD], Bill Nelson [D-FL], Debbie Stabenow [D-MI], Maria Cantwell [D-WA], Ben Cardin [D-MD], Sherrod Brown [D-OH], Amy Klobuchar [D-MN], Jean Shaheen [D-NH], Jeff Merkley [D-OR], Rolland Burris [D-IL], and Al Franken [D-MN].

SOURCES: FinancialStability.gov, Sen. Al Franken
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Treasury, SBA Submit Small Business Financing Forum Report to the President

Today, as a follow-up to the Nov. 18 Small Business Financing Forum, the U.S. Department of the Treasury and U.S. Small Business Administration [SBA] issued a report to President Barack Obama, summarizing the policy ideas and recommendations discussed. Last month's forum brought together small-business owners, lenders, regulators and policymakers for an open discussion focused on the best ideas for providing the support that small businesses need to continue to drive economic recovery.

The report is aimed at continuing this important dialogue going forward -- including President Obama's Forum on Jobs and Economic Growth tomorrow, during which SBA Administrator Karen Mills and Treasury Secretary Tim Geithner [pictured] will be leading a session, "Paving the Road for Small Business Job Growth."

For more information regarding Recovery Act-related small-business funding policy, check out the following resources:
* Small Business Financing Forum Report to the President
* Small Business and Community Lending Initiatve
* Fact Sheet: Unlocking Credit for Small Businesses
* Q&A for Small Business Owners

SOURCES: FinancialStability.gov, U.S. Department of the Treasury
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Franken Demands Immediate Congressional Hearings re Banks' Abuse of $700 Billion Bailout

Minnesota DFL candidate Al Franken -- the only U.S. Senate candidate who opposed the $700 billion Wall Street bailout -- today called for immediate hearings in light of reports indicating that banks may not be using those funds to unfreeze credit markets but, rather, for other purposes -- with the encouragement of the Treasury Department.

"Washington sprung into immediate action when Wall Street was in trouble, but there's been no help for struggling homeowners on Main Street and no solutions for middle-class families and small businesses hurt by the failed economic policies of the last eight years," said Franken. "And now we find that the $700 billion bailout is being used not to solve the problem, but to handpick winners and losers on Wall Street. That's an outrage.

"Taxpayer dollars should be helping taxpayers, not going to pad the bottom lines of the Wall Street bankers whose bad bets got us into this mess. This is exactly why we should never have passed this bill without proper accountability. And it's time for Congress to take action."

Earlier this month, the Bush administration announced that it would use bailout funds to inject capital directly into banks. They claimed that this would allow credit to start flowing again as banks lent that money to other entities. But recent reports indicate that, instead, the banks receiving these funds are using them to buy up other, smaller banks. And the Treasury Department, according to a column by New York Times financial columnist Joe Nocera, is encouraging the practice.

Meanwhile, Wall Street financial institutions like Morgan Stanley and Merrill Lynch continue to pay out billions in bonuses, despite receiving bailout funds.

This morning, during his statewide "For The Middle Class, For A Change" bus tour, Franken stopped at Bouquets by Carolyn, a small business located in St. Paul, Minn. There, he called for:
* Immediate hearings into potential abuses of the $700 billion bailout by Wall Street banks
* Straight answers from the Bush administration on its real plans for these taxpayer dollars
* An administration guarantee that banks receiving bailout funds will use them to lend
* A revocation of U.S. Treasury Department Secretary Henry Paulson's authority to implement the bailout if he cannot explain how his plan is serving taxpayers

In an editorial today, the New York Times wrote, "Shortly after the bailout was enacted, The Times's Mark Landler reported that Treasury officials also wanted to steer the bailout billions to banks that would use the money to buy up other banks. Now, lo and behold, with $250 billion in bailout funds committed to dozens of large and regional banks, it turns out that many of the recipients of this investment from taxpayers are not all that interested in making loans. And it appears that Mr. Paulson is not so bothered by their reluctance."

Case in point: Merrill Lynch. Two days ago, Bloomberg reported that, while Merrill Lynch is laying off employees, the financial institution is paying out billions in bonuses. According to Bloomberg, "Five straight quarters of losses and a 70 percent slide in its stock this year haven't stopped Merrill Lynch & Co. from allocating about $6.7 billion to pay bonuses ... The money Merrill has set aside for bonuses equates to an average $110,000 for each of its 60,900 people, up from $108,000 a year ago because more than 3,000 jobs have been cut."

Apparently, Merrill Lynch isn't the only bailout recipient that's utilizing taxpayer funds to reward its employees. Bloomberg also reported that Morgan Stanley and Lehman are both setting aside billions for bonus payments. According to Bloomberg, "Even some employees at Lehman Brothers Holdings Inc., which declared the biggest bankruptcy in U.S. history last month, will get the same bonus they received a year ago ... Morgan Stanley, the second-biggest securities firm until it also converted to a bank, has $6.44 billion for bonuses, or $138,700 per person, down 20 percent from last year."

GoodBiz113's take: Al Franken is right: Congressional oversight is needed, post-haste, to hold the Wall Street bailout recipients accountable for seeing that taxpayer funds are used to help fuel America's economy [e.g., small businesses, homeowners, working families], as intended -- not to lavishly reward their own fat-cat executives and employees.

SOURCES: Al Franken for U.S. Senate, Bloomberg, New York Times
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Bipartisan Bill Expands Health-Care Access for Small Businesses

Yesterday, in a victory for the families of small-business owners and their employees, the Senate passed bipartisan legislation that will improve accessibility of the State Children’s Health Insurance Program [SCHIP] program. Senators John Kerry [D-Mass.] and Olympia Snowe [R-Maine] attached an amendment to the legislation that will create a governmental task force to enroll more children in the program. The provision requires the Small Business Administration [SBA] to team with the Secretary of Health and Human Services, the Secretary of the Treasury, and the Secretary of Labor to educate small business owners, employees and the self-employed about the eligibility and enrollment requirements for SCHIP.

“President Bush’s threat to veto kids’ health care means that as many as 4.4 million children, including the sons and daughters of small-business owners and the self-employed, will be denied access to health coverage,” said Sen. Kerry, chairman of the Committee on Small Business and Entrepreneurship. “Democrats and Republicans came together to put the health and safety of American children ahead of politics and ideology. President Bush should drop his ill-conceived veto threat and do right by our nation’s children by giving them health care.”

"The amendment I cosponsored with Senator Kerry would create a multi-agency campaign, including the Small Business Administration, to help enroll children in the SCHIP program who are currently eligible for the program, but not currently enrolled," explained Sen. Snowe, ranking member of Kerry's committee. "Many of these children come from families who work for a small business or are self-employed. It is imperative that the SBA and its resource partners actively work to reduce the number of uninsured children in this country."

The Kerry-Snowe amendment, modeled after the Small Business Children’s Health Education Act [S. 1714], would:

* Establish an Intergovernmental Task Force to conduct a nationwide campaign of education and outreach for small businesses regarding the availability of coverage through SCHIP and/or other private insurance options;

* Encourage the use of SBA’s business partners -- including Small Business Development Centers, Certified Development Companies, Women's Business Centers, and SCORE -- as well as private and non-profit groups, to increase SCHIP enrollment;

* Create a hotline for small businesses to call with questions about SCHIP eligibility and enrollment; and

* Require SBA to provide prominent online access to information on eligibility and enrollment requirements.

GoodBiz113's take: SCHIP is far-reaching, win-win-win legislation that truly benefits current and future generations of workers, small-business owners, entrepreneurs, and self-employed people. Replete with enthusiastic support from both sides of the political aisle, SCHIP deserves to be enacted and funded ASAP.

Sources: Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship, Wikipedia
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Democrats Call on Government to Increase Minority Advertising Contracts

Today, leading Senate and House Democrats urged federal agencies to take an active role in increasing the amount of federal advertising contracts awarded to disadvantaged and minority-owned businesses. Their action comes in response to a report by the Government Accountability Office [GAO], to be released today, concluding that federal agencies are falling short of the standards set by an executive order [E.O. 13170], issued in 2000, calling on the government to “aggressively” reach out to minority and underserved firms.

Senate Majority Leader Harry Reid [D-Nev.], Small Business and Entrepreneurship Committee Chairman John Kerry [D-Mass.], senior Senate Judiciary Committee member Chuck Schumer [D-N.Y.], and Congressional Black Caucus Chair, Rep. Carolyn Kilpatrick [D-Mich., pictured] today sent letters to the Departments of Defense and the Treasury expressing concern for their poor record of awarding contracts to minority and disadvantaged businesses. They also asked the agencies to outline specific steps they are taking to increase contracts with minority advertising firms.

The Defense Department awarded minority advertising firms only 1.8 percent of contract dollars and paid them, on average, nearly 84 percent less per contract than majority firms. The Treasury Department awarded minority advertising firms only 1.9 percent of contract dollars and paid them, on average, nearly 47 percent less per contract than majority firms.

The GAO also reviewed the records of three other agencies, which all spent more advertising dollars with minority firms: Health and Human Services Department [24.6 percent], Interior Department [6.4 percent], and NASA [88.9 percent].

“I am deeply concerned that the Departments of Defense and Treasury are denying minority advertising firms the opportunity to work with the federal government,” said Sen. Reid. “That they may even be discouraging hiring minority firms and paying them nearly 84 percent less than majority firms is even more disturbing. We will continue to aggressively monitor these and other federal agencies to make sure that our government meets our own standards of contracting with minority firms.”

“This report shines a spotlight on the federal government’s failure to make equal opportunity a reality, not just rhetoric,” Sen. Kerry noted. “The Defense and Treasury Departments are woefully behind the curve. Awarding less than two percent of advertising contract dollars to minority-owned and disadvantaged firms is unacceptable, and this report must be a wake-up call. My committee will keep up the pressure and stay on top of this until these agencies drastically improve their contracting practices.”

“The federal government is supposed to be doing everything it can to help minority businesses, yet the Departments of Defense and the Treasury are penny-pinching and falling far short of federal goals,” said Sen. Schumer. “These standards were established to foster minority business growth and to make sure that federal advertising is crafted by a diverse community of talented entrepreneurs. These departments need to do an about-face and take whatever steps are necessary to ensure that minority-owned advertising businesses are getting the fair shake that they need and deserve.”

“Despite an executive order, federal agencies are not providing minority business owners -- who pay taxes, provide jobs, and help strengthen our economy -- with equal opportunities in the federal contracting process,” declared Congresswoman Kirkpatrick. “Failure to promote inclusion and fairness in contracting is not only an egregious disservice to America’s families, but it is also a mockery of the promise upon which our country was founded.

“We must continue to advocate for the underserved and underrepresented, and encourage our government to lead by example. Diversity is America’s strength. By expanding access, we improve our ability to compete in the global marketplace, ensure that all people have the chance to achieve their potential, and enhance efforts to build a united America.”

The report, which was requested by Sens. Reid, Kerry and Schumer, will be released by GAO sometime today.

Sources: Federal Register, U.S. Senate Committee on Small Business and Entrepreneurship
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