Meet the new SBA crony, same as the sold SBA crony

April 28, 2006

When Bush needed someone to head the Small Business Administration, he turned to [tag]Hector Barreto[/tag], a former Republican fundraiser who had no experience or relevant qualifications. The New Republic, with good reason, named him one of the administration’s top “hacks.” As is usually the case with Bush’s partisan cronies, the SBA was mismanaged and slammed for its poor performance, particularly in response to disaster loans.

This week, Barreto resigned, giving Bush the opportunity to find a more qualified nominee. True to form, the president went with another crony instead.

[tag]Steven Preston[/tag], the little-known lawn-maintenance executive the White House tapped Tuesday to replace Hector Barreto at the helm of the [tag]Small Business Administration[/tag] is stirring up some industry advocates. They say the Chicago businessman and Bush loyalist is no friend of theirs….

[H]is resume shows he has no experience as an entrepreneur and comes from a company with a reputation as a bully among some small-business owners.

Preston is a self-described “committed Republican,” which apparently is the principal qualification for the job. Put it this way, Bush’s choice to head the Small Business Administration “does not have experience running a small business.”

What’s more, as Pensito Review noted, the American Small Business League has come out strongly against Preston’s nomination.

“We don’t need another unqualified SBA Administrator,” stated Lloyd Chapman, President of the American Small Business League. “Hector Barreto’s dismal track record is a clear indication of what happens when you appoint someone that has no qualifications to run an important Federal agency. I’m afraid this nomination signals a continuation of the Bush administration’s intention to continue to dismantle the agency.

[tag]Paul Krugman[/tag] noted today that recent history “shows that a president who isn’t serious about governing, who prizes loyalty and personal connections over competence, can quickly reduce the government of the world’s most powerful nation to third-world levels of ineffectiveness.”

Krugman was referring to FEMA, but it’s a description that could apply to so many agencies.

Not even worth the effort to formulate an insightful response.

  • Just out of curiosity, what is a “lawn maintenance executive”?

    It sounds like what I did in junior high, but I get the feeling he wasn’t wheeling his lawn mower around the neighborhood for a little spare cash. Now THAT’s small business.

  • I can’t quite decide if this is a conscious policy or not, but a pattern does seem to be developing. They totally screwed up FEMA, which had been an effective agency before Brownie showed up, and now are saying it should be abolished rather than making it effective again.

    Looks like the SBA is headed in the same direction. Bush is literally slowly dismantling the entire government, which I’m sure must delight Grover Norquist and his merry band of co-conspirators but does nothing for the rest of us.

    They must seriously believe that they can destroy the national infrastructure and simply smirk in their billionaire enclaves while the rest of us rot in the misery they are creating for us. I hope we can prove them wrong.

  • “…. can quickly reduce the government of the world’s most powerful nation to third-world levels of ineffectiveness.”

    Krugman’s pessimism has been countered recently.

    Condi & Rummy just assurred everyone that the new Iraqi government is going to do a “heckuva good job.”

    I haven’t felt this optimistic since “Mission Accomplished” day….

  • “what is a “lawn maintenance executive”?” – Paul

    Someone who hires those illegal aliens risking their lives with those out-of-maintenance enormous mowers you see around.

  • Oh, and by the way, I would bet that if they do abolish FEMA one of the stated reasons for doing so will be so that the military can be given a greater role in disaster relief and recovery instead of a civilian agency.

    Another foot in the door on the way to a military/police state? We speculate, you decide.

  • “Someone who hires those illegal aliens risking their lives with those out-of-maintenance enormous mowers you see around.” – me

    Which raises an interesting way to keep this guy out of office. Start investigating his company for abuse of the labor laws and employment of undocumented workers. Give the man a Zoe Baird problem.

  • Doesn’t the new SBA chief have to be confirmed? Where is Congress in this election year? Last night I saw on CNN that the people approve of the republican congres by a whopping 20%. They should be concerned about their jobs if they don’t start doing them. I think the average “Joe six-pack” has begun to notice.

  • ServiceMaster = Service to thy Master (God).

    If he’s a ServiceMaster executive he’s probably a hardcore fundie. That’s the only qualification Bush needs. From what I’ve heard you practically have to pass a religion test just to work there. According to their code of conduct (caution: large PDF) one of their primary objectives is to “Honor God in all we do.”

  • Does anyone know if Congress needs to approve these people Bush rewards with jobs? I think we need to have a law or two making it mandatory that those chosen for government jobs especially heads of departments and agencies have experience in those areas. And I am not referring to appointing those who lobby against something being rewarded with a position on the agency they were lobbying against..(does that make sense?) Bush has taken cronyism to an all time high..

  • I predict Preston will try and close the SBA before the end of the year. Republicans have been trying to end federal programs to assist small businesses since the Reagan administration. 119 billion in government small business contracts are at stake and the defense industry wants all of it. The only way they can get it would be if federal small business programs were abolished. If Preston tries to close the SBA by combining it with the Commerce Dept., I am confident we can stop them in Federal Court. I have beat the Federal Government in Federal Court three times and I will do it again if Preston even talks about combining SBA with the Commerce Dept.

    Lloyd Chapman
    President, American Small Business League

  • As a franchising executive, Steven Preston is just what is needed by those in influence: a loyal MBA plumber. His job is to keep the cash flowing into what many realize, too late, to be a “trap for the trusting”.

    I have been a Canadian franchise analyst since 1998 and have studied our government guaranteed loan program which is very similar to 7(a).

    Disasters come and go. Incubating and growing predatory lending and fraud under the “Be your own Boss” umbrella yields a much higher rate of return.

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