SBA chief resigns

Barreto has led SBA since July 2001.

In his letter of resignation to President George W. Bush, Barreto wrote, “It has been a unique honor to serve as administrator of the U.S. Small Business Administration and to help execute your vision to bring unprecedented opportunities to all entrepreneurs in every community as they seek to realize their dreams.”

During Barreto’s tenure, the SBA has seen significant growth in its lending, technical assistance and procurement programs, especially for minorities and women. Between 2001 and 2005, the agency doubled the number of loans made through the main SBA business loan programs.

Not everyone, however, has positive thoughts about Barreto’s tenure. Lloyd Chapman, president of the American Small Business League, issued a statement regarding Barreto’s resignation.

In it, Chapman said, “During Barreto’s tenure, there have been 11 federal investigations that have documented fraud, abuse, loopholes and a dramatic lack of insight in small-business contracting programs.” Chapman also cited an internal SBA report that found billions of dollars in awards to corporate giants reported as small-business contracts.

Barreto has agreed to remain in his post as SBA administrator during a transition period.

The National Federation of Independent Business on April 26 released a statement praising President Bush’s announcement that he will nominate Steven Preston to succeed Barreto. Preston is former executive vice president and chief financial officer of The ServiceMaster Co.