📺 Stream EntrepreneurTV for Free 📺

Democratic Lawmakers Question NFIB's Motives for Small Business The small business organization that is leading the case against President Obama's health care reform act is asked to disclose its donor list.

By Catherine Clifford

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

NFIB Claim as The Voice Of Small Business Being Challenged

The National Federation of Independent Business runs with the tagline "The Voice of Small Business," but a group of Congressional leaders are challenging the group's interests. This, while the NFIB spearheads the fight to overturn President Obama's health care reform act, in a case awaiting a Supreme Court ruling.

The co-chairs of the Democratic Congressional Progressive Caucus (CPC) sent a letter Tuesday to NFIB president Dan Danner, questioning the NFIB's claim that it represents small business interests. The letter, written by Rep. Raúl M. Grijalva (D., Ariz.) and Rep. Keith Ellison (D., Minn.), says donations that the NFIB has received undermine its claims to be a non-partisan small business advocacy group.

In a statement, the lawmakers called into question whether the NFIB "actually represents major corporations and conservative political interests." In particular, they're questioning a $3.7 million donation from a group Crossroads GPS whose parent organization cites Republican political strategist Karl Rove as its adviser.

The letter requested details on how that money was spent, and called on the NFIB to disclose all contributions it received over the past three years. The lawmakers also want a list of NFIB members, membership fees and details on any donations those members have made to the organization.

Related: Is the Health Care Tax Credit a Dud?

"The Affordable Care Act, or 'ObamaCare,' is a major accomplishment that is already benefiting millions of Americans. The fact that the NFIB has asked the highest court in the land to review the law -- and possibly overturn it -- means relevant information about participants should be disclosed," Rep. Ellison said in a statement.

The NFIB does not plan to disclose its donor list, amounts of donations or its member list, according to Jean Card, a spokesperson for the NFIB.

"We are representing our membership well and per their wishes," Card says. "The underlying charge of this letter is unfounded."

Card says that the $3.7 million donation from Crossroads GPS was "absolutely not" used to fund the health care lawsuit. The money was used to pay for advertisements promoting issues important to NFIB members in the 2010 Congressional election cycle, she says.

Related: What Small Businesses Care About This Election Year

The implication that the NFIB is not independent and is championing conservative political issues is not true, says Card.

The health care reform act, officially called the Patient Protection and Affordable Care Act was signed into law in 2010, but most provisions don't go into effect until 2014. It will require businesses with more than 50 employees, working 30 hours a week on average, provide health-care coverage or pay an annual fine of up to $3,000 per employee (called the employer mandate). The individual mandate will require nearly all individuals to pay for their own health coverage or pay a fee. The NFIB calls the reform "job-killing."

Conversely, small businesses represented by the Main Street Alliance, a Seattle, Wash.-based advocacy organization, say that the health care reform would benefit their business.

Related: Business Owners Take SBA Chief to Task

Do you think the NFIB should disclose its list of members and donations? Why or why not? Share your approach and respond to other readers in the comments below.

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Social Media

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Science & Technology

Brand New GPT-4o Revealed: 3 Mind Blowing Updates and 3 Unexpected Challenges for Entrepreneurs

Unveiling OpenAI's GPT-4.0: The latest AI with vision, auditory, and emotional intelligence abilities is revolutionizing industries. How will it affect your business?

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

You're Reading Body Language All Wrong — And It's Putting Your Next Business Deal On The Line. Decode Non-Verbal Cues By Following These 5 Steps.

In the intricate dance of business meeting negotiations, the nuances of communication become the fulcrum on which decisions balance. For the astute entrepreneur, understanding body language is not just a skill; it's an imperative. However, relying solely on isolated gestures can be deceptive. To truly harness the power of non-verbal cues, one must grasp the concept of "clusters."

Business News

The Music Giant Behind Beyoncé, Harry Styles and Adele Bars ChatGPT From Using Its Songs

The world's largest music publisher sent letters to more than 700 companies demanding information about how its artists' songs were used.

Growing a Business

Clinton Sparks Podcast: The Struggles and Fame of Rapper Lil Yachty's Entrepreneurship Journey in Hip-Hop

This podcast is a fun, entertaining and informative show that will teach you how to succeed and achieve your goals with practical advice and actionable steps given through compelling stories and conversations with Clinton and his guests.