Is the SBA the Next Federal Scandal?

RJ Eskow of Night Light posed this question on his blog earlier today – Is the SBA the Next Scandal?.

According to the Associated Press, Bush’s Small Business Administration not only mismanaged the disbursement of funds meant for small businesses harmed by September 11, but publicized one audit while concealing another in order to make their record appear better than it actually was.

Republican Senator Olympia Snowe calls the situation “nothing short of an outrage.” And what did SBA head Hector Barreto do before he got this job? Why, he raised a lot of money for Republican campaigns. Obviously the SBA doesn’t play the same life-saving role FEMA does, but there are echoes of the FEMA scandal in the mismanagement of funds meant to relieve those who suffered from a disaster.

I think RJ could be on to something, because over the past two years or so since I have been blogging about John Kerry, I have paid very close attention to his work as the Ranking Member of the Senate Small Business Committee. Needless to say, I was not at all shocked or surprised when I heard that Congress was going to investigate the SBA’s Sept. 11 Loan Program.

Why? Because over the past couple of years, John Kerry has repeatedly exposed corruption and fraud within the SBA, he’s fought to keep important SBA programs afloat and chastised Hector Barreto on numerous occasions for simply put, his mismanagement of the SBA.

Kerry joined Olympia Snowe in her recent call for an investigation into the SBA’s Sept. 11 Loan Program.

This was a deliberate attempt to cover up White House budget gimmicks that left the SBA’s largest loan program underfunded and on the brink of shutting down,” Kerry said. “The administration asked SBA employees to bend the rules and steer regular loans through the program aimed at helping businesses impacted by 9/11.”

Earlier today I posted about the follow-up letter from Senators Kerry and Landrieu on the Katrina Disaster Loan Program, that they requested an extended deadline for on Sept. 1. They have yet to have received a reply from Barreto.

Numerous examples of issues with the SBA and Hector Barreto, that Kerry has pointed out in recent months can be found here, here and here.

Here’s one example of another scandal of sorts with Barreto and the SBA: SBA in Hot Water for Failing to Monitor Contract Bundling’s Effect on Small Business.

In his letter to the SBA administrator, Kerry charged that the “continued lack of effective oversight of federal contracting by SBA is an abrogation of the agency’s duty to effectively advocate on behalf of small businesses attempting to do business with the federal government.”

The average person doesn’t pay much attention to the Small Business news coming out of the Senate. Perhaps they should, because as RJ noted, this could very well be the next Federal scandal.

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About Pamela Leavey

Pamela Leavey is the Editor in Chief, Owner/Publisher of The Democratic Daily as well as a freelance writer and photographer. Pamela holds a certificate in Contemporary Communications from UMass Lowell, a Journalism Certificate from UMass Amherst and a B.A. in Creative Writing and Digital Age Communications from UMass Amherst UWW.
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3 Responses to Is the SBA the Next Federal Scandal?

  1. Teresa says:

    And what a good scandal this would be. Nothing more important than the small businessman. I’m sick of sex, torture and murder being the only stories. Kerry is not a sensationalist and that’s one of the reasons people get so angry with him. He refuses to satisfy that prurient desire.

  2. Teresa

    Most people simply don’t get how important small business is to the economy.

  3. Ginny in CO says:

    “Kerry is not a sensationalist and that’s one of the reasons people get so angry with him. He refuses to satisfy that prurient desire.”


    Absolutely, totally on the mark. We already had too large a cultural soap opera attitude towards real life. Then the level and admiration of anger and vengefulness was escalated by the GOP, right wing radio and news. Now the Democrats have sunken to responding the same way.

    Example that comes to mind is Bill Maher’s show that was linked here this week. He started one thought that some individual who was known to throw telephones should be part of the recall. Then he changed it to ALL should be telephone throwers.
    It was comedy, but we laugh at it – because the raw emotions are what attract too many minds.

    Maybe we need some Hollywood script writers to develop some constructive anger stuff for us?