New Orleans, LA – Congressman William J. Jefferson (D-La.) and other members of the U.S. House Committee on Small Business held a field hearing this afternoon to review the participation of small businesses in the federal effort to rebuild New Orleans and other Gulf Coast communities.  The committee, chaired by Representative Nydia M. Velazquez (D-Ca.), specifically addressed whether local small businesses are getting their fair share of federal contracts that have been and are still being awarded in the wake of Hurricane Katrina. 
 
"Our small businesses have been overwhelmed not only by the physical damage caused by the storm, but also by inept policies and poorly executed strategies- including, to a large extent- being locked out of the federal contracting process in the aftermath of Katrina," Jefferson said.
 
"In the time just following the storm, 90% of the $2 billion in initial contracts were awarded to larger companies based outside of the three primary affected Gulf Coast states.  Minority businesses took an even harder hit- receiving under 2% of the first $1.6 billion spent.  Women-owned businesses received even less."                                    
 
"There are many tiers that make up the hierarchy of these big businesses.  When the work  is done, the people in the top ranks make the big profits, and those in the trenches- the ones who did the real labor- are barely compensated.  It's time we enact a better system.  Local small business owners whose companies have what it takes to rebuild their own communities deserve a fair shake at landing the jobs", Jefferson said.