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Apr-19-2008

Bush Names Housing Secretary, but Some Question Whether He Is ...

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CONTENTS:

President Bush on Friday nominated Steve Preston, now head of the Small Business Administration, to take over the Department of Housing and Urban Development. (More...)
Howard Glaser, a consultant and former HUD official in the Clinton administration, predicted Preston would be a "caretaker" until the next administration arrives. (More...)
New HUD Secretary Henry Cisneros, who took office after the project was proposed, eventually killed the West Dallas expansion, and in 1995 U.S. District Judge Jerry Buchmeyer ordered the housing authority to find housing for 3,205 minority families in mostly white areas. (More...)
The president has credited Preston with turning the SBA around following sharp criticism of the agency's efforts to help small-business owners recover from Hurricane Katrina. (More...)
If confirmed, Mr. Preston would leave behind an agency that spent $1.2 billion in fiscal 2007, and take over one of the government's larger bureaucracies, which spent roughly 40 times as much that year. (More...)
Jackson is responsible for the indifference and neglect of HUD, which has worsened our housing problems. (More...)
Preston "understands the important role the housing market plays in our economy," the official said. (More...)
In another instance of alleged favoritism that came to light in February, the Philadelphia housing authority alleges that Jackson retaliated against the agency because it refused to award a vacant lot worth $2 million to soul music producer-turned-community developer Kenny Gamble for redevelopment of a public housing complex. (More...)
I'd also like to thank my wife, Molly, and my great five children who are here to share with moment. (More...)
At the SBA, Mr. Preston is credited with speeding up the processing of government-backed loans following the 2005 Gulf Coast hurricanes. (More...)
Steven Preston is known for bullying small companies. (More...)
Specifically, HUD is dedicated to increasing ownership among minorities which Secretary Jackson has done by significant measure: 3.5 million more since 2002. (More...)

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President Bush on Friday nominated Steve Preston, now head of the Small Business Administration, to take over the Department of Housing and Urban Development. Preston would replace Alphonso Jackson, who resigned as HUD secretary amid allegations he tried to steer federal contracts to friends and political allies. Jackson's troubles began two years ago, when he told a group of minority real estate executives in Dallas that he canceled a contract after a contractor told him he had a problem with President Bush. "Why should I reward someone who doesn't like the president, so they can use the funds to try to campaign against the president?" Jackson said, as first reported by the Dallas Business Journal. "Logic says they don't get the contract. That's the way I believe." At HUD, Preston would face a turnaround mission similar to the one he faced when he took over the SBA in July 2006, when the SBA was swamped by huge backlogs in processing disaster loan requests following Hurricane Katrina. [1] WASHINGTON President Bush today nominated Small Business Administrator Steve Preston as secretary of Housing and Urban Development replacing embattled secretary Alphonso Jackson who is being investigated by the FBI for contracting cronyism related to projects in New Orleans and the Virgin Islands. Nearly two years ago, Mr. Preston replaced SBA chief Hector Barreto, whose ouster came after much political pressure for his slow handling and lack of preparedness to help small businesses in the Gulf Coast region secure loans and recover after Hurricane Katrina. "The department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty," Mr. Bush said, and added, "In seeking to fill this important Cabinet post I looked for a leader with an impressive background in finance; someone who understands the important role the housing market plays in the broader economy."[2] Mr. Preston, 47, was formerly the head of the Small Business Association. He succeeds Alphonso Jackson, who resigned after allegations that he gave housing contracts to friends in New Orleans and the Virgin Islands after the 2005 hurricanes that hit the Gulf Coast. This is a very interesting move on President Bush'''s part, because Mr. Preston had received much criticism after being appointed to head the SBA. After graduating from the University of Chicago'''s MBA program, Mr. Preston worked for several large corporations, like ServiceMaster Company, a multi-billion dollar corporation whose businesses include TruGreen Chemlawn and Terminix, where he served as an executive vice president. Mr. Preston had, in fact, never worked for a small business after receiving his MBA, and it was ironic that a man who had done very well for himself in the corporate sector would be the SBA'''s administrator. Earlier this year, according to The New York Times, Mr. Preston was, '''sharply criticized when Democrats in Congress learned that his agency had given a $1.2 million contract to a former Bush Administration official who lacked experience in helping small businesses compete for government contracts,''' (4/18/08). It is unclear whether Mr. Preston will be able to protect the hundreds of thousands of troubled homeowners from the risk of foreclosure by helping them refinance unstable subprime loans, and turning them into stable government-backed mortgages. If the housing and mortgage crisis isn'''t dealt with promptly by Mr. Preston, it might be end up being too late for him to make a big enough difference that the economy and borrowers need right now.[3]

President Bush on Friday chose SBA Administrator Steve Preston to lead the government's housing agency. If confirmed by the Senate, Preston would replace Housing and Urban Development Secretary Alphonso Jackson, who announced his resignation last month amid a criminal investigation and allegations of political favoritism. Preston is credited with correcting problems at the Small Business Administration, and he drew praise from Democrats. He steps in at a time when foreclosures have surged. He has a background of 25 years in financial and operational leadership. He was executive vice president of the ServiceMaster Co., a senior vice president and treasurer of First Data Corp., and an investment banker at Lehman Bros.[4] Senate Banking, Housing and Urban Affairs Chairman Chris Dodd, Connecticut Democrat, said today he is skeptical of President Bush's pick to replace outgoing Housing and Urban Development Secretary Alphonso Jackson, whose term ends today. Bush today named Steve Preston, head of the Small Business Administration, as his pick to head the agency. Jackson, who resigned from his post recently, is the subject of a federal grand jury investigation into suspected cronyism involving a multimillion dollar redevelopment project in New Orleans. Preston must be approved by the Senate, and Bush urged that body to "quickly consider" the nominee and ratify him on a timely basis." "He's a hardworking, dedicated professional," Bush said during remarks announcing his choice. "In fact, he was confirmed to his current post by the United States Senate without a single vote in opposition.[5]

Washington, D.C. (AHN) - President George Bush announced on Friday the nomination of a new chief for the Department of Housing and Urban Development (HUD) to replace outgoing Secretary Alphonso Jackson. The President said Steve Preston, a former investment banker and now Administrator of the Small Business Administration, will be his nominee for the post held by Jackson, who submitted his resignation last month after a being a series of controversies.[6]

On behalf of NAR's more than 1.2 million members, I want to thank President Bush for moving quickly in nominating a new head for the U.S. Department of Housing and Urban Development. NAR has had a positive experience working with Administrator Steve Preston in his role with the U.S. Small Business Administration, and we believe he will do a fine job representing HUD and helping the nation navigate through the housing downturn and the mortgage crisis. Mr. Preston's past experience, both as CEO of ServiceMaster and as SBA Administrator, gives him good insight into the needs of small businesses that serve the real estate and housing industries. We congratulate Mr. Preston on his nomination and look forward to working with him at this critical time for our nation's economy and the housing market.[7] Today, President Bush announced his intention to nominate Steve Preston to serve as the next Secretary of Housing and Urban Development. A strong executive with an outstanding track record in the private sector and at the Small Business Administration (SBA), Administrator Preston has a deep financial and capital markets background, and he understands the important role that the housing market plays in the broader economy. President Bush is confident that Administrator Preston is a reformer who will act aggressively to help struggling Americans obtain affordable mortgages and keep their homes, as well as help ensure that all Americans have access to safe, decent, affordable housing. If confirmed, Administrator Preston will lead the Department of Housing and Urban Development (HUD) in its mission to support homeownership and community development and increase access to affordable housing free from discrimination.[8]

No surprise here, Sen. Mel Martinez who served as President Bush's first secretary of Housing and Urban Development praised the president's nominee to be his third HUD secretary. "Steve Preston is the type of individual this agency needs to ensure it is doing all it can to help families stay in their homes and negotiate this crisis. He is the right person at the right time for a difficult job and can make a real difference. His experience at the Small Business Administration and substantial financial experience in the private sector make him well qualified to lead this department. I spoke with him earlier today and offered my assistance as he takes on this new role. I look forward to his swift confirmation."[9] President Bush's choice of Steve Preston to run the Department of Housing and Urban Development (HUD) got a tepid reception from two key Democrats in Congress. In a statement issued by his office, Senate Banking Committee Chairman Chris Dodd (D-Conn.) noted that Preston, who currently runs the Small Business Administration (SBA), has "no apparent housing background" -- a fact he said raises questions about his qualifications for the job. The current mortgage crisis "calls for a leader with expertise in housing issues," he argued.[10]

Citing his track record as a problem solver, President Bush on Friday nominated the head of the Small Business Administration to lead the troubled Department of Housing and Urban Development. Pending his confirmation by the Senate, Steven Preston, a former investment banker who was sworn in as head of the small-business agency in July 2006, will replace outgoing HUD chief Alphonso Jackson, who resigned last month amid allegations of cronyism that prompted a criminal investigation.[11] Small Business Administrator Steve Preston has been chosen by President Bush to serve as the replacement for Alphonso Jackson, outgoing secretary of the Department of Housing and Urban Development (HUD), according to an AP report.[12] WHITE HOUSE (AP) - Democrats are praising the man President Bush has chosen to take over as head of the government's housing agency. They're describing Steve Preston as a problem-solver. Bush today said he's chosen Preston to head the Department of Housing and Urban Development, at a time of crisis in the housing industry. He says Preston has "an impressive background in finance." Preston would replace Alphonso Jackson, who announced his resignation last month.[13] The White House plans to announce today that SBA Administrator Steven Preston has been selected to succeed outgoing HUD Secretary Alphonso Jackson, who is under criminal investigation for purportedly favoring friends with contracts at public housing authorities controlled by HUD. Jackson'''s resignation takes effect today. President Bush'''s decision to nominate Preston came as a surprise because his name had not emerged in speculation about who would replace Jackson. Preston could not be reached for comment Thursday evening at his Virginia home. People with knowledge of the White House selection process confirmed he would be named. Preston will take over a troubled agency plagued by scandal and political infighting, but his supporters say that he brings the right tools to the job, including steady management, a strong financial background, and good relations with Capitol Hill. He also will take the reins as the federal government struggles to deal with the subprime mortgage crisis that has buckled the economy.[14] For the past 18 months, Preston has headed the Small Business Administration, where he upgraded an agency that had been criticized for its response to Hurricane Katrina. He came to government from a career in the private sector, most recently as executive vice president of ServiceMaster, the large home-cleaning and pest-control company. Preston, 47, will replace Alphonso Jackson, who resigned last month amid allegations of favoritism in his dealings with a Philadelphia developer. Jackson, who was present yesterday at the White House for the announcement of his successor, was praised by Bush as a "decent man" who "has transformed a lot of lives." In explaining the appointment, Bush singled out Preston's work in managing loan guarantee programs at the SBA, which he likened to the work he will be doing at HUD if he is confirmed by the Senate. He cited Preston's success in clearing a lengthy backlog of loans for businesses devastated by the hurricane in the Gulf Coast.[15] Preston is taking HUD's reigns after former Secretary Alphonso Jackson resigned in the midst of extensive criticism related to allegations of cronyism and political favoritism. While at the SBA, Preston oversaw the agency's loan guarantee programs--a responsibility President Bush believes will be an asset in his new role. "When Steve took the reins at the SBA, he streamlined the agency's efforts to disburse loans to small businesses and homeowners devastated by Hurricane Katrina," President Bush said during a press conference announcing Preston's appointment. "He matched every loan applicant with a case manager to provide the compassion and expertise that applicants needed to navigate the loan process.[16]

WASHINGTON (AP) --President Bush has chosen SBA Administrator Steve Preston to take over as head of the government's housing agency at a time of deep crisis in the industry, administration officials said Friday. If confirmed by the Senate, Preston would replace HUD Secretary Alphonso Jackson, who announced his resignation last month amid allegations of political favoritism and a criminal investigation.[17] "The department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty." Preston's nomination will require confirmation by the U.S. Senate and he would replace departing HUD Secretary Alphonso Jackson, who resigned amid controversy involving his role in awarding government contracts. Some Democrats immediately questioned Bush's pick, pointing to his apparent lack of experience with the housing industry. "I look forward to learning more about Mr. Preston and his qualifications for this important job at this trying time in our nation's economy," said Sen. Christopher Dodd, a Connecticut Democrat who chairs the Senate Banking Committee that will consider his nomination.[18]

Democrats hailed Preston as a problem-solver. If confirmed by the Senate, Preston would replace Housing and Urban Development Secretary Alphonso Jackson, who announced his resignation last month amid a criminal investigation and allegations of political favoritism. Jacksons last day on the job was Friday and he sat in the Roosevelt Room to hear Bush announce his successor.[19]

Bush was to name Preston's nomination at midday before going to Camp David. Jackson leaves behind the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies. Preston was sworn in as head of the Small Business Administration in July 2006, after his nomination was unanimously confirmed by the Senate. Bush was expected to praise him as an effective manager and problem-solver who can take on complex challenges, officials said.[20] Lawmakers showed mixed reaction to the president's intention to nominate Steven Preston, the head of the Small Business Administration, to the helm of the Department of Housing and Urban Development. Sen. John Kerry (D-Mass.), who heads the Senate Small Business and Entrepreneurship Committee, said he'll be "sorry to see him go" and commended Preston for working to fix an agency that has been in disarray. "We may have some differences on policy, but he's always been professional, responsive and dedicated to the mission," Kerry said in a statement.[21] WASHINGTON, April 18 /PRNewswire-USNewswire/ -- Today Senator John Kerry (D-Mass.), Chairman of the Committee on Small Business and Entrepreneurship, issued the following statement on the expected nomination of Steven Preston, head of the Small Business Administration (SBA), for Secretary of the Department of Housing and Urban Development (HUD): "I've worked with Steven Preston as the SBA Administrator for almost two years now and I'll be sorry to see him go. Mr. Preston inherited an agency in disarray, and he's worked hard to right its course and to improve relationships with Congress. We may have some differences on policy, but he's always been professional, responsive, and dedicated to the mission."[22]

Preston is currently the Administrator of the Small Business Administration: "After a long period of inaction by the Bush Administration and the former HUD Secretary, there is no time to waste. American families are at risk of losing their homes and the time to act is now. The President's newly announced Secretary of Housing and Urban Development must demonstrate that he will exercise constructive leadership and provide a fresh perspective to tackle the nation's housing crisis.[23] WASHINGTON, April 18 (UPI) -- U.S. President Bush Friday nominated Steve Preston, head of the Small Business Administration, to be the new secretary of housing and urban development.[24] WASHINGTON, April 18 (Reuters) - U.S. President George W. Bush on Friday nominated the head of the Small Business Administration, Steve Preston, to lead the Department of Housing and Urban Development as the administration tries to bolster the sagging housing market.[18]

WASHINGTON (CNN) President Bush will nominate Steve Preston to replace Alphonso Jackson as secretary of the Department of Housing and Urban Development, a senior administration official said Friday.[25] President Bush's nomination of Steve Preston as the new secretary of the federal Department of Housing and Urban Development drew praise Friday from Mississippi Gov. Haley Barbour.[26] WASHINGTON, April 18 /PRNewswire-USNewswire/ -- Speaker Nancy Pelosi issued the following statement on the nomination of Steve Preston by President Bush to be the next Secretary of Housing and Urban Development (HUD).[23]

WASHINGTON -- President Bush nominated Steven Preston as secretary of the Department of Housing and Urban Development, a move likely to set off a skirmish between the White House and Congress as both grapple with responses to rising foreclosures and souring mortgages.[27] The AP reports that President Bush plans to name Steven Preston as Secretary of Housing and Urban Development, replacing the disgraced Alphonso Jackson.[28] Ms. Halstead was stunned. Then-council member Lori Palmer called Mr. Jackson's behavior "bizarre" in a news account and said at the time: "He yelled, he shouted, he interrupted, he accused, he charged, he didn't have facts. It was unbelievable." After a week of insisting he had been right, Mr. Jackson apologized. All a misunderstanding, he said. There was not much to suggest that the man publicly lobbing verbal grenades at a prominent Dallas establishment politician would later hold one of the nation's highest offices, named secretary of Housing and Urban Development in 2004 by his friend and former Preston Hollow neighbor, President Bush.[29] President Bush yesterday named Steven C. Preston as his new secretary of Housing and Urban Development, installing a well-regarded corporate and government administrator -- yet one with little experience in housing issues -- as his point person in dealing with the consequences of the subprime mortgage meltdown.[15]

There was President Bush's housing secretary, Alphonso R. Jackson, who golfed and socialized here and led the federal agency that gave hundreds of thousands of dollars in business to friends and acquaintances, including Hairston and Hollis. One such friend, an Atlanta developer, received a $127 million contract last year as part of a joint venture to rebuild a New Orleans public housing project. That developer's company has paid Jackson more than $250,000 in fees since Jackson joined the Bush administration in 2001, for work done before Jackson joined government, the developer's lawyer said. Jackson, who announced his resignation in March, leaves office on Friday as federal authorities continue to investigate whether he enriched himself and friends with lucrative contracts. The investigation has also laid bare the connections between Jackson, who was determined to expand opportunities for minority contractors, and the ambitious men who benefited from those opportunities. It is the story of a small circle of black businessmen linked by a shared affinity for conservative politics and their financial interests in the revitalization of troubled public housing stock, and how those connections may have helped force the housing secretary from public life.[30] "Some in the housing community are probably scratching their head and saying the same thing we said a couple of years ago, 'Who is this guy?' " said Todd McCracken, president of the National Small Business Association, a trade group. "But I think this is a big loss for the SBA. I don't know how much he can do in the final six months of the Bush administration, but he's certainly a 'can-do' kind of person." Allen Fishbein, director of housing and credit policy at the Consumer Federation of America, a consumer group, said he "didn't know anything about" Mr. Preston. "We would prefer someone, but I think the critical thing is the commitment and the will to address this worsening crisis," Mr. Fishbein said. Sen. Mel Martinez (R., Fla.) said Mr. Preston's lack of a housing background wouldn't hinder his ability to lead HUD. "It's a management job," said Mr. Martinez, who was HUD secretary during President Bush's first term. "It's not like they are setting a broad agenda. It's about managing the very challenging housing situation we're in today."[27] "As the head of the Small Business Administration, Steve has advanced a reform agenda that made the agency more accountable, more effective and more responsive America's entrepreneurs have received improved access to federal assistance, as well as educational resources," Mr. Bush said. Mr. Preston, 47, left his job as chief financial officer of ServiceMaster Co. in April 25, 2006, to fill the SBA post. He has also served as senior vice president and treasurer of First Data Corp. and senior vice president of investment banking at Lehman Brothers. Mr. Bush called his new HUD secretary a "reformer" and "consensus builder" who had earned the respect of both Democrats and Republicans on Capitol Hill.[2]

Mr. Preston, who joined the Bush administration as head of the Small Business Administration in 2006, has won high marks from Republicans and some Democrats as an effective administrator. He has little housing experience, an issue Democrats seized upon Friday. Before entering government, Mr. Preston, 47 years old, was chief financial officer at ServiceMaster Co., which owns home-service companies such as Terminix and Merry Maids. Prior to that, he was a senior vice president and treasurer of First Data Corp. and an investment banker at Lehman Brothers Holdings Inc.[27]

WHITE HOUSE (AP) - President Bush has chosen the head of the Small Business Administration to take over the government's housing agency.[31]

WASHINGTON (AP) — President Bush has chosen SBA Administrator Steve Preston to take over as head of the government's troubled housing agency at a time of deep crisis in the industry, administration officials said Friday.[20] WASHINGTON (AP) — President Bush on Friday said he would nominate SBA Administrator Steve Preston to take over as head of the government's housing agency at a time of crisis in the industry, citing "an impressive background in finance."[32]

President Bush on Friday chose SBA Administrator Steve Preston to lead the government's housing agency. He was executive vice president of the ServiceMaster Co., a senior vice president and treasurer of First Data Corp., and an investment banker at Lehman Bros.[4]

If approved by the Senate, Preston, 47, will replace Alphonso Jackson, who resigned amid charges of nepotism in awarding contracts. The change in leadership at the nation's top housing agency comes as millions of Americans have lost their homes after rates on risky mortgages skyrocketed and just nine months before President Bush leaves office.[33] President Bush is expected to nominate Steven Preston to succeed outgoing Housing Secretary Alphonso Jackson, a senior administration official said.[34] Until Alphonso Jackson went off-script. It may not have been textbook behavior for a future Cabinet member in a conservative Republican administration. The dustup in September 1992 had elements of classic Jackson the style that made him a lightning rod in Dallas and contributed to his national political downfall. With a federal investigation looming, his last day as President Bush's housing secretary was Friday. Mr. Jackson was executive director of the Dallas Housing Authority when he accused then-City Council member Donna Halstead during a meeting of "racism in its worst form" for saying the city would make a better apartment owner than the housing authority. During his time as leader of the Dallas Housing Authority, Alphonso Jackson (far right), with the Rev. Peter Johnson (center), discussed a plan for new housing in West Dallas[29]

Preston, currently the Small Business Administration director, would replace HUD Secretary Alphonso Jackson if confirmed by the Senate. Jackson announced his resignation last month amid a criminal investigation and allegations of political favoritism. Barbour said that in his SBA role, Preston was well-versed in issues related to Hurricane Katrina recovery.[26] Preston will replace Alphonso Jackson, who resigned as HUD secretary amid controversy. The Senate still must confirm Bush's nominee, but senators unanimously confirmed Preston for the SBA post, another reason the president said he chose Preston.[35]

Roy A. Bernardi, the second-in-command at HUD, will serve as acting secretary until Mr. Preston is confirmed. He succeeds Alphonso Jackson, whose rocky tenure at HUD ended Friday. Mr. Jackson announced his resignation several weeks ago amid continuing controversy over the agency's awarding of contracts. Senate Banking Committee Chairman Christopher Dodd is key to Mr. Preston's confirmation -- his approval is necessary before any vote takes place.[27]

If the Senate confirms him, Steve Preston would replace Housing and Urban Development Secretary Alphonso Jackson. Jackson announced his resignation last month amid an FBI investigation and allegations of political favoritism.[31] If confirmed by the senate, he will replace Alphonso Jackson, who is facing a criminal investigation on charges of political favoritism. Mr. Bush said Steve Preston is the right man for the job, because of his impressive background in finance.[36]

Steve Preston is an experienced manager who knows what to do. He knows how to tackle a problem, devise a solution and get results. That's exactly the kind of leadership I was looking for. That's why I'm going to send his name up to the United States Senate to be the Department's Secretary. He will play a central role in helping address our nation's housing challenges. He'll work with members of Congress to advance responsible legislation that will help millions of American homeowners. He will be entrusted with one of the most rewarding jobs in the federal government: helping our fellow Americans have a place to call a home. These are important responsibilities, and I'm confident I picked the right person for the job. He's a hardworking, dedicated professional. He was confirmed to his current post by the United States Senate without a single vote in opposition.[37] The next step is for Preston's appointment to be confirmed by the Senate. "Jackson leaves behind the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies," the article notes. Preston brings to the position 25 years of experience in financial and operational leadership positions, including executive vice president of The ServiceMaster Co., where he also served as chief financial officer. He has worked as a senior vice president and treasurer of First Data Corp. and as an investment banker at Lehman Brothers.[12] Sen. Chris Dodd, chairman of the Senate committee with oversight of the housing agency, isn't sure of the choice, citing Preston's lack of experience with housing. From Dodd today: "As our nation faces the biggest housing crisis in recent history, we need a strong leader at the Department of Housing and Urban Development who is dedicated to helping people keep their homes, restoring stability and confidence in the mortgage market, and creating more affordable housing opportunities. These priorities call for a leader with expertise in housing issues, yet the President's choice has no apparent housing background, which raises questions." Dodd said, he looks forward to learning more about Preston and his qualifications.[38]

"HUD's crisis must be resolved without delay. The fact remains, the agency Mr. Preston has been responsible for leading is still plagued by serious problems of its own." There are plenty of noble reasons to get into public service--the opportunity to affect policy, the chance to better people's lives, Hannah Montana tickets--but it's tough to imagine anyone nurturing the dream of becoming the top dog at the Department of Housing and Urban Development. It's certainly a step up for Preston, who was nominated to the post today after serving as director of the Small Business Administration--one of the few Washington, D.C., agencies that is less inspiring than his new bureau.[39] Preston, currently the head of the Small Business Administration, will have to be confirmed by the Senate before officially taking over at the Department of Housing and Urban Development.[34]

As the head of the Small Business Administration, Steve has advanced a reform agenda that made the agency more accountable, more effective and more responsive. Under his leadership, America's entrepreneurs have received improved access to federal assistance, as well as educational resources. Under his leadership, the SBA has increased its focus on supporting business development in areas with high unemployment and poverty rates. Under his leadership, agency efficiency has improved, and America's small business community has found a trusted friend and partner. During his tenure at SBA, Steve has managed loan guarantee programs that are similar in structure to those run by the Federal Housing Administration, and he's made these programs run very effectively. When Steve took the reins at the SBA, he streamlined the agency's efforts to disburse loans to small businesses and homeowners devastated by Hurricane Katrina. He matched every loan applicant with a case manager to provide the compassion and expertise that applicants needed to navigate the loan process.[37] "Steve is a strong executive with a quarter-century of management experience," the president said at a press conference to announce Preston's nomination. "He understands the free-enterprise system from every angle." Bush said Preston made many reforms at SBA. Since he was sworn in as administrator in July 2006, Preston streamlined the process of approving loans for small firms, especially firms caught in the wake of Hurricane Katrina, and assigned a case manager to each loan applicant. "He knows how to tackle a problem, devise a solution and get results," Bush said. SBA launched a Small Business Procurement Scorecard in August to grade agencies' attempts to send their contracting dollars to small businesses.[35]

The president touted Preston's 25 years in the private sector and his success as head of the Small Business Administration in accelerating disaster loans held up in the bureaucratic process. When Preston was appointed SBA administrator in April 2006, small-business owners faced waiting periods averaging 104 days for low-interest loans designed to help them rebuild.[33] Preston comes to HUD from chief of the Small Business Administration (SBA). When he was appointed to SBA, Preston had no " experience running a small business," previously serving as a senior vice president of ServiceMaster, a " multibillion-dollar corporation." As executive vice-president, strategic services of Illinois-based ServiceMaster, which operates popular home service brands such as Merry Maids, Terminix, and TruGreen ChemLawn, Preston oversees the company's long-term planning and technology systems, among other areas. The nominee has also likely strengthened his ties to the Bush Administration during his time there.[28]

The Washington Post Columnist Stephen Barr: " e made listening to employees a priority." "Preston visited field offices and ramped up efforts to communicate with agency employees about the mission of the SBA helping Americans start and build businesses and how that related to their specific jobs. National Federation of Independent Business President Todd Stotlemeyer: "He is a man who clearly understands the value of setting goals and achieving results in a large, complex organization, skills and knowledge that will serve him well at the SBA." "At the same time, he has had invaluable experience in the credit and financing arenas, especially as he worked to meet the needs of his small-business customers. Kauffman Foundation President and CEO Carl Schramm: "By coming to this initiative in the Gulf Coast, Administrator Preston is demonstrating the Bush Administration's commitment to the rebuilding of the communities devastated almost one year ago."[8] Administrator Preston intensified the SBA's focus on driving business formation into areas of our country with higher unemployment and poverty rates. By designing relevant products, expanding targeted outreach, and focusing agency goals to address the needs of underserved communities, he enabled sustainable job formation and economic activity in areas of our country that need it most. Administrator Preston also boosted SBA's impact on America's small businesses by advancing an agenda that allows them to compete in a global economy.[8] Administrator Preston was unanimously confirmed by the Senate and became head of the SBA in July 2006. There, he spearheaded a reform agenda to make the agency more accountable, effective, and responsive. Families received the disaster assistance they needed in a timely, compassionate manner; lenders have products that are easier to use; and small businesses have broad access to the Federal contracts and educational resources they need to grow and succeed.[8] "Large businesses continue getting small business contracts, SBA's Katrina disaster relief program is a failure, and morale of the agency's personnel is one of the lowest in the federal government." Preston is no stranger to controversy, which he met head-on after taking over the troubled small business agency. He suffered harsh criticism for the way the SBA handled aiding small businesses in the Gulf region after hurricanes Katrina and Rita, a complex task he inherited from his predecessor Hector Barreto, who resigned as head of the SBA after a tenure marred by problems stemming from the agency's handling of the Sept. 11 terrorist attacks and the devastating hurricanes.[21]

The chairwoman of the House Small Business Committee, Rep. Nydia Velazquez (D-N.Y.), argued that it was "short-sighted" to trade "one troubled agency for another." She asserted that Preston would leave the helm of an agency "still plagued by serious problems of its own," citing low morale among SBA employees, the "failure" of SBA's Katrina disaster relief program and small business contracts being snatched by large firms. Sen. Charles Schumer (D-N.Y.), who has served as one of the administration's most vocal critics on its handling of the mortgage mess, urged an open mind on Bush's pick.[10] Bush called Jackson "a decent man. a dedicated man. a compassionate man" and added, "America is a better place because of your service." Preston is widely credited with correcting major problems at the Small Business Administration, and he drew praise from Democrats for his work. "Ill be sorry to see him go," said Sen. John Kerry, D-Mass., chairman of the Committee on Small Business and Entrepreneurship. "Mr. Preston inherited an agency in disarray, and hes worked hard to right its course and to improve relationships with Congress," Kerry said.[19] The nomination must be voted on by the Senate. Preston administers the Small Business Administration, a job he began in July 2006. That agency advocates on behalf of small businesses, helps advance the economy and assists in rebuilding efforts following a disaster.[25] Washington, April 19 (IANS) With the demand for U.S. products and services on the rise in India, a U.S. government agency helping small business concerns and an Indian-American trade association have joined hands to advance export opportunities there. A strategic alliance memorandum (SAM) signed by the U.S. Small Business Administration (SBA) and the US-India Business Alliance (USIBA) will allow them to share resources to help start, maintain, and expand small businesses, particularly through trade with India. The first of its kind agreement for SBA and the US-India business community will last for two years.[40]

"USIBA is excited about administrator Preston's enthusiastic promotion of a trade agenda," said Sanjay Puri, president and CEO of the USIBA, which works for increasing commerce between the U.S. and India. "This agreement with SBA will extend each organization's efforts to foster and facilitate further involvement by the U.S. small business community in trade with India. We look forward to an enduring and impacting institutional relationship that will continue to contribute in a meaningful fashion for many years to come," he said.[40]

"The strategic alliance memorandum will further align the SBA and USIBA missions to support America's small businesses," SBA administrator Steve Preston said Friday. "Working together, we can strengthen U.S. small businesses by helping them access growing markets like India, where business and consumer demand for U.S. products and services is on the rise," he added.[40] As Administrator of the SBA, Administrator Preston streamlined the agency's efforts to disburse loans to small businesses and homeowners devastated by Hurricane Katrina.[8] Preston, a former corporate executive with ServiceMaster Co. and First Data Corp., revamped the SBA's disaster loan program and received mostly good marks for improving the agency's processes and employee morale. "I'll be sorry to see him go," said Sen. John Kerry, D-Mass., who chairs the Senate Small Business and Entrepreneurship Committee. "Mr. Preston inherited an agency in disarray, and he's worked hard to right its course and to improve relations with Congress. We may have had some differences on policy, but he's always been professional, responsive and dedicated to the mission."[1] In taking over HUD, Preston would inherit another beleaguered federal agency, which is struggling to cope with rising foreclosure rates and declining home values. Sen. John Kerry (D-Mass.), the chairman of the Senate Committee on Small Business and Entrepreneurship, said he'll be sorry to see Preston leave his post at the small-business agency. "He's worked hard to right its course and to improve relationships with Congress," Kerry said in a statement. "We may have some differences on policy, but he's always been professional, responsive, and dedicated to the mission."[11]

Republicans offered praise for Bush's pick. Senate Minority Leader Mitch McConnell (R-Ky.) said Preston has an "excellent record" in his current role as SBA head. Sen. Olympia Snowe (R-Maine), the ranking member on the Senate Small Business and Entrepreneurship Committee, called Preston "a terrific choice" and praised him as a "tremendous advocate for the nation's small businesses."[10]

"Steve Preston is an experienced manager who knows what to do," Mr. Bush said. "He knows how to tackle a problem, devise a solution and get results. That's exactly the kind of leadership I was looking for." Mr. Preston must be confirmed by Senate Democrats before he can take over at HUD, an agency at the center of the Bush administration's response to the housing turmoil.[27] Steve Preston has been given the nod by President Bush to be his housing secretary nominee, according to a senior administration official. Fortunately, this appears to be a bipartisan move, with Democrats hailing Mr. Preston as a '''problem solver.''' There are some doubts as to whether Mr. Preston can quickly fix the housing mess, if even at all, if he is confirmed.[3]

"The new Secretary must take strong action to help families facing foreclosure, eliminate abusive mortgage lending practices, and ensure that federal housing initiatives receive sufficient funding. "House Democrats are moving forward with a comprehensive plan to help families stay in their homes, and we will work with President Bush and his new appointee to tackle our nation's housing and economic challenges."[23] "The Department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty," President Bush said at the White House. "In seeking to fill this important Cabinet post I looked for a leader with an impressive background in finance." "I sought a reformer who would act aggressively to help Americans obtain affordable mortgages, and I sought a -- and be able to keep their homes," he added.[6] Jackson's last day on the job is to be Friday. In a White House ceremony, Bush called Preston "a reformer who would act aggressively to help Americans obtain affordable mortgages and be able to keep their homes." Speaking of Jackson, Bush called him "my dear friend. a decent man, a dedicated man and a compassionate man."[32]

HUD is at the crux of the administration'''s plans to address the subprime mortgage mess that has rippled through the economy and left millions with ruined credit and no homes. The White House has advocated several ways to help floundering homeowners, most of them centering on the Federal Housing Administration, a Depression-era agency that falls under the department'''s jurisdiction.[41] The White House recently expanded a program to help struggling borrowers refinance, using a mortgage-insurance program run by the Federal Housing Administration, a division of HUD. Democrats want the government to insure more loans and to allow more borrowers at risk of foreclosure to qualify.[27]

Associated Press - April 18, 2008 1:33 PM ET WHITE HOUSE (AP) - Democrats are praising the man President Bush has chosen to take over as head of the government's housing agency[13] Accused by Democrats in Congress of being slow to act as credit for homes dried up and prices dropped, the White House has scrambled to shore up the agencies responsible for housing sector issues and head off millions of home foreclosures. "He will play a central role in helping to address our nation's housing challenges," Bush said of Preston.[18]

Henry J. Pulizzi reports on the White House. The White House could name its choice to replace Alphonso Jackson as soon as Friday, when the embattled Housing and Urban Development Secretary's resignation takes effect.[42] In his first on camera interview, the outgoing secretary of Housing and Urban Development, Alphonso Jackson, was candid and reflective as he officially departs his post Friday, April 18. As we talked about an array of housing and market place issues, the secretary was clearly amused by a recent Post story blaming him for the housing and mortgage crisis facing this country. The reasoning for his amusement is that HUD only has responsibility for 8 percent of the housing market and they are low- and middle-income families.[43]

WASHINGTON -- Steven Preston, who is credited with breaking a logjam of stalled federal loans after Hurricane Katrina, was nominated Friday to take over the U.S. Department of Housing and Urban Development in the midst of a national mortgage crisis and following the troubled tenure of its former secretary.[33] Bush was to name Preston's nomination at midday before going to Camp David. Jackson leaves behind the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies.[17] "Our solutions must restore confidence in our markets while not erecting barriers to future enterpreneurs, investors and home buyers," Preston said. Jackson leaves behind the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies.[19]

"I certainly hope to bring that spirit to the Department of Housing and Urban Development, to help restore stability and confidence in the housing market, and to promote sustainable job ownership, free from discrimination in our country," Mr. Preston said. Mr. Preston said he hoped to help people pursue the American Dream by ensuring that the market operates "fairly and effectively."[2]

"After a long period of inaction by the Bush administration and the former HUD secretary, there is no time to waste. American families are at risk of losing their homes and the time to act is now," Pelosi said in a statement. "The president's newly announced secretary of Housing and Urban Development must demonstrate that he will exercise constructive leadership and provide a fresh perspective to tackle the nation's housing crisis."[33] You are invited to participate by posting your comments and asking questions. We'll do our best to find the answers., No surprise here, Sen. Mel Martinez who served as President Bush's first secretary of Housing and Urban Development praised the president's nominee to be his third HUD secretary.[9]

The AP reports that President Bush plans to name Barney, the family dog, as Secretary of Housing and Urban Development. Barney has announced his plans to replace all public housing with dog houses.[28]

WASHINGTON (AP) — The Associated Press has learned that President Bush will name SBA Administrator Steven Preston as HUD chief to oversee the nation's housing policies at a time of crisis in the industry.[44]

A federal grand jury, according to news reports, and the HUD inspector general have been investigating Jackson's role in alleged sweetheart contracts awarded to friends at housing authorities in New Orleans and in the Virgin Islands. HUD officials also are under scrutiny for threatening to deny federal financing to the Philadelphia housing authority for its refusal to sell real estate to a friend of Jackson's. The former HUD secretary became the object of scorn by some low-income housing advocates in New Orleans for his push to raze public housing complexes and redevelop them after the storm. His efforts, however, were praised by Democratic Mayor Ray Nagin, Sen. David Vitter, R-La., and others. Preston generally won praise Friday from Capitol Hill for his work at the SBA, particularly from Gulf Coast lawmakers who were impressed with his frequent visits to the region. "I am encouraged by his track record as a reformer and problem solver -- a skill set that will be critical for addressing the redevelopment of the failed New Orleans public housing system," Vitter said in a statement.[33] 'Is there something wrong with trying to make sure African-Americans participate in the contracting program with the American government?' asked Clyburn, who vacations here regularly and knows Jackson, Hairston and Hollis. Over time, concerns have grown ' first among some housing officials and later among federal investigators ' as it became clear that several men who interacted with and had business deals with Jackson became beneficiaries of his efforts to further integrate the contracting corps. Hairston, who golfed with Jackson here, received at least $610,000 in contracts from the New Orleans housing authority, which HUD took over in 2002, in exchange for reconstruction work on public housing complexes that were battered by Hurricane Katrina, officials say. (Hairston did not shy from talking up his personal ties to Jackson, according to housing officials who worked with him.[30] Pressuring subordinates to award contracts to specific firms could be a crime, according to government officials briefed on the inquiry. The officials said investigators were also trying to determine if Jackson received payments in exchange for any help he gave friends. The officials, who spoke on condition of anonymity, said investigators had not found evidence of such an arrangement. Hollis and Khalil denied that they asked for or were offered any special treatment because they were friendly with Jackson. They say they believe federal investigators know that their contracts were legitimate. Parker said he had turned over documents and spoken with investigators. He said a Justice Department official told him that his client was considered a witness in the investigation. 'But the fact is that he has nothing to hide,' he said. 'I feel comfortable in saying that they've checked our facts out." Hollis said federal investigators had not contacted him about his contracts to manage the Virgin Islands housing authority, which extended from February 2006 to May 2007. The authorities have subpoenaed records from Smith Real Estate Services, an Atlanta firm that retained him as a special adviser for a Virgin Islands contract with HUD in 2004.[30]

Jackson was was similarly nominated by the President in 2004. His term as Housing Department secretary has been beset with allegations of conflicts of interest and corruption. He has been accused by critics of awarding government contracts based on politics. His ties to an Atlanta contractor and the $127 million project in New Orleans was hired to develop is currently being investigation by the FBI. Despite the allegations, the President stood by his support for Jackson and said on Friday that he is "a decent man, a dedicated man and he's a compassionate man." "He's worked tirelessly at HUD to help America's homeowners. "He has transformed a lot of lives," the President added.[6]

Khalil, who does not vacation on Hilton Head, hired Jackson as a partner in 1998 for development deals in Texas, before Jackson joined HUD as deputy secretary in 2001. (The two men met in 1994, also via an introduction from Maynard Jackson, when Alphonso Jackson was running the housing authority in Dallas.) From 2001 to 2007, Columbia Residential paid Jackson over $250,000 in developer fees on three housing complexes for work that he completed before he entered government, said Khalil's lawyer, Buddy Parker. Jackson listed only one payment ' of $35,000 ' from Columbia Residential in the financial disclosure forms he filed for 2001 to 2006. Investigators have been looking into whether Jackson steered contracts to Khalil to ensure that Khalil could make those payments.[30] Noel Khalil, another Atlanta businessman who occasionally dined with Alphonso Jackson in Atlanta and in Washington, runs Columbia Residential, a development company that received the $127 million contract from the New Orleans housing authority last year as part of a joint venture hired to redevelop the St. Bernard housing project.[30]

In 2003, the year before Jackson was named secretary, 14 percent ' or $134 million ' of the Department of Housing and Urban Development's contracts went to black-owned firms, officials say.[30] Welcome. A few weeks ago my dear friend, Alphonso Jackson, informed me of his decision to step down as the Secretary of Housing and Urban Development.[37]

Hairston's wife, Starletta, is running for a seat in the South Carolina House, on the Republican ticket. Housing officials who worked with Hollis said he described himself as a Republican, though he declined to discuss his political leanings.) Hollis said he still admired Jackson, despite the housing secretary's troubles, because he climbed out of poverty to become a lawyer and a member of Bush's Cabinet. 'He pulled himself up by his bootstraps,' he said. Khalil said through his lawyer that he 'regrets the circumstances that Alphonso Jackson finds himself in." As for Jackson, he is planning on 'a few months of rest and relaxation' after stepping down from office, said a HUD spokesman, Stephen C. O'Halloran.[30] The White House appoints unqualified cronies every day; but Lehman Brothers sure as hell does not. Given his finance background and government experience reforming the Bush administration'''s (now second-) most conspicuous finance failure, no honest, reasonable, and informed person can say he is unqualified on his own merits; and certainly not that he is head and shoulders above Alphonso Jackson.[28]

Bush's nomination of Preston comes after HUD's former head, Alphonso Jackson, stepped down last month amid accusations of cronyism and partisan management.[10] If confirmed, Preston would replace Alphonso Jackson, who stepped down April 18 amid allegations of favoritism toward some HUD contractors. Some Democrats called on Jackson to resign in March after he refused to answer questions about a controversial Philadelphia land deal. Before taking over the SBA in 2006, Preston was executive vice president and chief financial officer of The ServiceMaster Co., which provides services such as home security, structural inspection, cleaning and disaster recovery services, landscaping, and pest control.[45] The housing department has been at the center of policy debate recently as it struggles to cope with rising mortgage default rates and collapsing home values. Preston would take over for Alphonso Jackson, who resigned following allegations of favoritism in his dealings with a Philadelphia developer and criticism of his failure to implement an adequate response to the housing industry crisis. He also was a top executive with ServiceMaster. I interviewed Preston last July on his vision for the SBA in the wake of hurricanes Katrina and Rita.[21]

If confirmed by the Senate, Preston would replace HUD Secretary Alphonso Jackson, whose tenure was tarnished by allegations of political favoritism and a criminal investigation.[20] If confirmed by the Senate, Preston will follow the scandal-plagued tenure of Alphonso R. Jackson to lead a key post in the administration'''s plans to combat home foreclosures. Jackson announced his resignation in March, amid allegations of cronyism, corruption and political favoritism and following demands by key lawmakers that he step down.[41]

If confirmed by the Senate, Preston would take over a $38 billion agency that has been a key player in the administration's response to the mortgage crisis. A debate has raged in Washington in recent months over how aggressive the government should be in helping borrowers saddled with high-rate loans refinance their mortgages and prevent foreclosures. Consumer groups estimate that each week an additional 20,000 homeowners are late on their mortgage payments and face the threat of foreclosure.[15] President Bush is no doubt hoping Preston will be able to step into the post and restore relations between HUD and Congress ''' as the administration continues to press Congress to clear an FHA overhaul that could enable the agency to help more borrowers refinance into government''-insured loans. For a full version of this story and the latest coverage, please visit CQ Politics.[41] Within months of Steve's reforms, the backlog of loans fell 80-percent, and response times improved by 90-percent." Bush toted Preston as an expert in housing and finance, as well as an agency reformer who has drawn the support of lawmakers on both sides of the aisle.[16]

Preston will take over the agency at a time of chaos in the housing market. Foreclosures have surged to record highs as rising interest rates and the collapse of the once high-flying housing market have made it impossible for some to afford their monthly mortgage payments or sell their homes. The administration has taken some steps to provide relief to millions of people at risk of losing their homes.[17] Even worse, the SBA's efforts in the aftermath of Hurricane Katrina were sharply criticized as slow--even by federal government standards. (In fairness, Preston was not there at the time.) It's easy to see the attraction of leaving the SBA. But Preston will have an enormous task in front of him at HUD. About the only thing that lawmakers, federal officials, and the presidential candidates seem to agree on these days is that a housing rescue should be run through the Federal Housing Administration, a branch of HUD (although the plans do vary a great deal in scope).[39] Speculation on Jackson's replacement has centered on three names: HUD Deputy Secretary Roy A. Bernardi, Federal Housing Administration Commissioner Brian D. Montgomery, and Office of Federal Housing Enterprise Oversight Director James Lockhart. When he announced his decision to step down last month, Jackson said he wanted to focus on personal and family matters. Allegations of wrongdoing and criticism of his handling of housing issues after Hurricane Katrina fractured his relations with Democrats in Congress and prompted calls for his resignation.[42]

An Inspector General's report revealed that Jackson had urged senior staff to take political affiliation into account when awarding contracts. He faces allegations that high-level HUD officials were scheming to take away federal funds from the Philadelphia Housing Authority after it did not turn over land to one of Jackson's friends. Dodd and Sen. Patty Murray (D-Wash.), the chairwoman of the Appropriations housing subcommittee, called for Jackson's resignation after he refused to answer questions about the allegations during appearances before their panels. Jackson resigned on March 31, citing a desire to spend more time with his family.[10] U.S. District Judge Paul S. Diamond ruled on March 31 in Philadelphia that HUD acted legally and did not retaliate against the housing authority. Jackson's problems began in 2006, when he told a group of commercial real estate executives that he had revoked a contract because the applicant who thanked him said he did not like Bush. Jackson later told investigators "I lied" when he made the remark about taking back the contract.[20] Jackson's resignation takes effect Friday. His tenure was dogged by accusations of improper behavior, allegations he denies. Philadelphia's housing authority has accused Jackson in a lawsuit of trying to punish the agency for blocking a deal that involved one of his friends. Jackson, who led HUD since 2004, also raised eyebrows in 2006, when remarks he made were interpreted to suggest that political affiliation had a bearing on how HUD contracts were awarded.[34]

Mr. Jackson was a package deal with the drama came the reforms, said Dallas lawyer Mike Daniel, the housing chief's sometimes foe, sometimes ally during fights over desegregating Dallas public housing. "A simpler personality would not have been able to get done all he needed to get done," Mr. Daniel said. Through a HUD spokesman, Mr. Jackson declined to be interviewed for this story. Mr. Jackson wasted no time in making local headlines when he was hired to run the Dallas Housing Authority in December 1988. In his first year, he publicly criticized Dallas police for poor security at public housing projects and jabbed city officials for renovating big apartment complexes in neighborhoods plagued by crime and poverty instead of smaller complexes in more stable areas.[29] Pamela Smith, president of Smith Real Estate Services, declined to comment. Her lawyer, Ralph Caccia, said she cooperated fully with the authorities. Hollis said he had improved the troubled Virgin Islands housing authority, imposing financial accountability, rehabbing 300 public housing units, negotiating for efficient and cost-effective water service and removing hundreds of abandoned cars from the properties, among other steps. Carmen Valenti, a HUD official who oversaw Hollis' work, described him as 'dedicated, very conscientious and really hard-working.' Valenti said Hollis's contract required several approvals and was extended several times by HUD officials.[30]

Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.), whose committee will consider the nomination, said the department is facing the "biggest housing crisis" in recent history. "These priorities call for a leader with expertise in housing issues, yet the president's choice has no apparent housing background, which raises questions," Dodd said. "Nevertheless, I look forward to learning more about Mr. Preston and his qualifications for this important job at this trying time in our nation's economy."[15] "Steve Preston did an excellent job helping dig SBA out of a number of problems in the wake of Hurricane Katrina. I am glad to see such a proven, strong manager at the helm of HUD and know he will do an outstanding job. I look forward to continuing working with him in his new position," Barbour said in a statement. He said a large part of Mississippi's post-Katrina recovery effort depended on HUD. He singled out the Community Development Block Grant program under which more than $5.4 billion in recovery funds has been allocated to the state. He also praised the president's appointment of retired Marine Corps Maj. Gen. Doug O'Dell to serve as the new coordinator for the Gulf Coast's recovery from the 2005 hurricanes.[26] I appreciate very much your willingness to step forward to serve the country, as well as to serve as Acting Secretary of HUD. And I thank you for keeping that position until Steve is confirmed. I also want to thank Steve's family — Molly, as well as Anna, Madeleine, Gibson, Eleanor and Steve, Jr. Thank you all for coming to the White House to witness this very important moment. I ask the Senate to quickly consider Steve Preston and to ratify him on a timely basis.[37] Prior to joining SBA, Preston was executive vice president of The ServiceMaster Company. Earlier, he was a senior vice president and treasurer of First Data Corp., and an investment banker at Lehman Brothers. '''The White House was looking for someone who can keep the cars between the lines at HUD,''' says a person familiar with the selection process, '''and make sure that they finish strong.'''[14] Bush told reporters at the White House that Preston, who took charge of the SBA in 2006, was a "consensus builder" and an "experienced manager."[24]

Talk about a buzz kill. There Steven Preston was, standing at the White House, with the decider at his side, wistfully daydreaming about his new job leading an obscure, corruption-tainted agency that's likely to play a leading role in a perilously complicated effort to pull homeowners out of the most terrifying crisis in a generation.[39] I thought you had to have certain job requirements for Secretary of Housing and Urban Development. "He's someone with a reputation for improving customer service and working on employee satisfaction and efficiency," says White House spokeswoman Erin Healy.[28] Jo-ann.moriarty @newhouse.comWASHINGTON - The U.S. Department of Housing and Urban Development announced yesterday that $75 million in federal grants is being distributed to pay for Section 8 public housing vouchers for 10,000 homeless veterans in the country. U.S. Rep. John W. Olver, D-Amherst, who is a member of the House Appropriations Committee and is the chairman of its subcommittee on transportation and housing and urban development, wrote $75 million into the existing budget for the program that had gone unfunded since 2001.[46]

Sen. Mary Landrieu, D-La., added, "Administrator Preston has been a willing and able partner who has worked to push through some important hurricane recovery initiatives, though much work remains left to be done for our small businesses." House Speaker Nancy Pelosi, D-Calif., was withholding judgment until she saw Preston's plans for the federal housing agency.[33] In the House, Rep. Nydia Velazquez (D-N.Y.), who heads that chamber's small business panel, said: "Trading one troubled agency for another is short-sighted, and it could not come at a worse time for the American people." The agency that Preston "has been responsible for leading is still plagued by serious problems of its own," she added.[21] "Trading one troubled agency for another is short-sighted, and it could not come at a worse time for the American people," Velázquez, a New York Democrat who is House Small Business Committee chair, said in a statement.[39]

Giovanni Coratolo, director of small business policy at the U.S. Chamber of Commerce, said Preston was "the quintessential right person at the right time" for the SBA. "I'm glad he's staying in government -- government can use more people like him," Coratolo said.[1] Sen. John Kerry (D-Mass.), chairman of the Small Business and Entrepreneurship Committee, said Preston inherited SBA when it was in disarray. "He's worked hard to right its course and to improve relationships with Congress," Kerry said. The committee's ranking Republican, Olympia Snowe of Maine, said she would work to get Preston confirmed quickly.[35] The selection of Preston drew a mixed response. Those who have worked with him on small-business issues appeared impressed, with Sen. John F. Kerry (D-Mass.), who chairs the Small Business Committee, declaring himself "sorry to see him go" from the Small Business Administration. "Mr. Preston inherited an agency in disarray, and he's worked hard to right its course," Kerry said in a statement.[15] "As the head of the Small Business Administration, Steve has advanced a reform agenda that made the agency more accountable, more effective and more responsive," Bush said. "Under his leadership, America's entrepreneurs have received improved access to federal assistance, as well as educational resources."[16]

"I sought a consensus builder whos earned the respect of Republicans and Democrats, who can get things done," Bush said. "I found these qualities and much more in Steve Preston." Preston thanked Bush and said: "When I joined your administration almost two years ago, it was because I believed so strongly in the vision of helping people reach their dreams of owning a business, owning a retirement portfolio and of course, owning a home.[19] I've worked on the liberal side of the SBA's affirmative action programs for the better part of the Bush administration, and Steve Preston is an honest, smart, effective, and reasonable man. His predecessor - Hector Barretto - was a textbook crony. His only qualification was his family name.[28]

Only 11 percent are certain or very likely to buy soon, down slightly from 15 percent two years ago. Preston was sworn in as head of SBA in July 2006, after his nomination was unanimously confirmed by the Senate. Bush was expected to praise him as an effective manager who can take on complex challenges, officials said.[19] Preston has been at the helm of the SBA since July 2006. He was confirmed unanimously by the Senate for that position, which may bode well for his HUD confirmation.[34]

Howard Glaser, a consultant and former HUD official in the Clinton administration, predicted Preston would be a "caretaker" until the next administration arrives. "Installing someone at HUD who continues to have no expertise in housing is a major flaw," he said. "We've gone through this entire crisis without any significant leadership from HUD, and it doesn't look like it's going to change." [15] Saying it was "regrettable" that Preston had no housing background, Schumer argued that the most important criterion for the job is the ability "to persuade the administration that more government involvement is needed on the housing crisis and the economy." "It remains to be seen whether Mr. Preston has these qualities," he said.[10] Prior to joining the administration, Preston served as chief executive of the ServiceMaster Company, as well as a top executive at First Data Corporation. He also worked as an investment banker at Lehman Brothers. Dodd said that, despite his misgivings about Preston's apparent lack of experience on housing, he looked forward to learning more about his qualifications for the job.[10]

White House spokesman Tony Fratto said fears about the nominee's experience were misplaced. "Preston is a rock-solid manager, and he understands how markets work -- which is a pretty valuable asset these days when we're talking about housing," he said. The U.S. housing industry is in the midst of a sharp downturn, with prices dropping throughout the country and a record number of homeowners falling behind on their mortgage payments.[15] Given the importance of HUD in the White House's effort to ease the housing crisis, the administration wants to avoid a contentious confirmation battle.[34]

Olver worked with the Bush administration in coordinating the efforts of HUD and the Veterans Administration to make federal money available to pay for housing vouchers of 10,000 veterans across the country. Phillip F. Mangano, who heads the Bush Administration's interagency council to end homelessness, also worked with HUD and the VA toward the goal of reducing the number of homeless veterans with the goal to give them permanently housed. The VA will provide a case worker to keep in touch with the formerly homeless veteran population to make sure they are taking their medications, paying their rents and offering support to keep them stable, said Jon Hite, the executive director of the Northampton Housing Authority which will manage the 70 housing vouchers. "This is an effort between HUD and the Veteran Assisted Supported Housing (a program within the VA) to try to address the most severely homeless of our veterans to provide them with a roof over the heads and social services," Hite said. "The social worker is intended to make sure that they keep their housing by ensuring they take their medications, pay their rent and get help available to them," Hite said. "I'm thrilled, this is a good program," Hite said, "a lot of these folks wouldn't be eligible for public housing under existing rules because their housing history would disqualify them. This program allows that their housing history can be overlooked.[46] "The department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty," Bush said, describing Preston as "a reformer who would act aggressively to help Americans obtain affordable mortgages."[15] The Department requires strong leadership at a time when our housing market is experiencing a period of challenge and uncertainty. In seeking to fill this important Cabinet post I looked for a leader with an impressive background in finance; someone who understands the important role the housing market plays in the broader economy. I sought a reformer who would act aggressively to help Americans obtain affordable mortgages, and I sought a — and be able to keep their homes.[37]

During Jackson's tenure at HUD from 2005-2006 the number of the chronically homeless decreased by nearly 12 percent ' that's a first, by the way. This decrease did not come at an easy time, either. Need I remind you that in August 2005, hundreds of thousands of homes were destroyed by a hurricane known as Katrina? But these statistics don't help paint the ineffective picture the Post wanted to portray, so they simply didn't print the information. Jackson personally led the push to help over 130,000 homeowners refinance their loans to make homeownership more affordable. In case the media or America has forgotten, that is the goal of his department ' more realizing the American dream.[43] 'The Federal Reserve, Fannie Mae, Freddie Mac, Treasury ' all impact the current state of the housing crisis. 'Let's not forget that Wall Street securitized the loans and sold them to foreign countries as mortgage back securities. 'When we arrived at HUD, the computer systems didn't interact internally with different divisions within HUD. Today we have pared this down to less than 100 and they all are interactive. For the first time in the history of this country, black Americans and Latinos are over 50 percent of home owners; 92 percent of homeowners who have made prime or sub prime loans are in good shape.[43]

With the housing sector buffeted by the subprime mortgage crisis, HUD has taken on a higher profile. It has partnered with the Treasury Department on Hope Now, the administration's collaboration with the private sector to help strapped homeowners.[34]

The decision is widely expected to coincide with Jackson's departure from HUD, which has been a central player in the Bush administration's response to the subprime mortgage crisis.[42]

Jackson has been plagued by allegations of political favoritism, and by a criminal investigation. Bush says Preston would "act aggressively to help Americans obtain affordable mortgages and be able to keep their homes."[13] Granting or denying federal contracts based on politics is illegal. After The Dallas Business Journal reported the speech, HUD spokesmen first said Mr. Jackson was referring to a particular contract, but later Mr. Jackson said he made up the whole story. With the possibility of political favoritism raised, the FBI later began its investigation of Mr. Jackson's involvement in HUD contracts in New Orleans and Philadelphia. On March 31, after two Democratic senators demanded that he step down, Mr. Jackson announced his resignation.[29] As HUD chief, Mr. Jackson told a Dallas audience in 2006 that anybody who wanted a HUD contract had better be a Bush supporter. One man, he said, lost a contract because he wasn't on the president's side.[29]

By 2007, black-owned businesses were receiving 25 percent of HUD's contracts, or $195.6 million. Some of Jackson's supporters deride the scrutiny of his casual friendships as a racist effort to undermine a prominent black official and several respected black businessmen, noting that no one has been charged with a crime. Rep. James E. Clyburn of South Carolina, the No. 3 Democrat in the House, said he believed the investigation was fueled by officials determined to derail Jackson's efforts to expand affirmative action.[30] Officials from the HUD inspector general's office and Justice Department are probing how contracts were awarded at HUD during Mr. Jackson's tenure.[27] Jackson rebuked HUD employees who challenged Hairston's contracts and authority, the officials said.)[30]

One academic expert said the plan showed "local officials colluding with HUD to use federal government powers to maintain the ghetto." Mr. Jackson acknowledged to The Dallas Morning News in early 1993 that he saw the plan "philosophically as an evil." He supported it anyway.[29] From 1988 to 1996, Mr. Jackson reformed the demoralized Dallas Housing Authority, battled city officials to expand public housing opportunities, helped settle a massive desegregation lawsuit, and even moved DHA headquarters to West Dallas, making the once-aloof bureaucracy a neighbor of the people it served. He also publicly accused city officials of being racists, said opponents of new public housing projects were lying to conceal their racism, endured death threats, and was charged with giving a council member a black eye, sore jaw, and loose tooth by shoving him into a City Hall door.[29] Mr. Jackson vigorously pursued the opportunity to move people into new areas, including mostly white North Dallas. He battled lawsuits and neighborhood opposition until he resigned from the housing authority in 1996 to take a utility executive job. In an interview upon his resignation, he said race was the defining issue in Dallas "and that's not bad," he said. "For too long, this city was controlled by 10 or 11 Anglo males. It has grown tremendously, and much of the conflict we see is good old-fashioned democracy." It was one last verbal gaffe in Dallas that started his public career sliding.[29]

The FBI is examining the ties between Jackson and a friend who was paid $392,000 by Jackson's department as a construction manager in New Orleans. Jackson's friend got the job after Jackson asked a staff member to pass along his name to the Housing Authority of New Orleans.[20]

During his time as leader of the Dallas Housing Authority, Alphonso Jackson (far right), with the Rev. Peter Johnson (center), discussed a plan for new housing in West Dallas.[29] Hollis owns a law firm that was paid at least $1 million by HUD for running the Virgin Islands housing authority, government contracting records show. (Maynard H. Jackson Jr., a former mayor of Atlanta who died in 2003, introduced Hollis to Alphonso Jackson more than a decade ago.)[30]

Washington is no different. When the housing market is playing well, its coach/secretary, Alphonso Jackson, received hardly any recognition for his execution strategies that increased home ownership among an often neglected segment of our country.[43]

When the game got tough the blame undeservingly fell on the secretary's head. Now, Alphonso Jackson is a tough ol' fella, and he's been in this business long enough to know you often take more licks than you give. When asked how he has grown over the years in the job, he said, 'Armstrong I used to shoot from the hip and say things that would get me broiled into controversy.[43] Now I'm more cautious and thoughtful in the things I say in public and private. I came to this job with much anger and realized that anger was destroying and rendering me less effective. While the secretary has certainly evolved into this job, it doesn't excuse the recent Washington Post front page Sunday coverage of his tenure as housing secretary, which was mean spirited and way out of bounds. Although the Post dedicated quite a few column inches to criticisms of Secretary Jackson's term, they failed to include even one mention of the success that happened in the years leading up to the unfortunate but inevitable housing situation.[43]

Still however, the media gives no credit for the previously mentioned accomplishments, but all the blame for the recent housing contraction. When Secretary Jackson's initiatives led the nation towards its housing goals, he surely deserved coach of the year; but critics call foul once and the secretary's vast, sometimes even record-breaking accomplishments are somehow passed over. I must admit for full disclosure that Secretary Jackson has been a friend for many years and I've been fortunate to watch him up close and cover him in many of our media forums. My admiration for him doesn't color my written or broadcast commentary. It is true that sometimes his often shoot-from-the-hip remarks have gotten him into controversial waters and have alienated him from many of his would be allies. The inspector's general's investigation into favoritism of Mr. Jackson and other allegations will be vetted through the legal process and we await their judgment. In the meantime, this secretary's accomplishments should be acknowledged and given their just credit.[43]

New HUD Secretary Henry Cisneros, who took office after the project was proposed, eventually killed the West Dallas expansion, and in 1995 U.S. District Judge Jerry Buchmeyer ordered the housing authority to find housing for 3,205 minority families in mostly white areas. [29] As Secretary, Administrator Preston will work to address the Nation's housing challenges and will work with Members of Congress to advance responsible legislation to help American homeowners.[8] Under Administrator Preston's leadership, disaster victims today receive better customer service and more timely assistance. Entrepreneurs have greater access to SBA resources, and military community members have a new loan product to help them start to expand businesses.[8] Under Administrator Preston's leadership, agency efficiency has improved and America's small-business community has a trusted friend and partner. During his tenure, Administrator Preston managed loan guarantee programs similar in structure to those run by the HUD, and he has made those programs run more effectively.[8]

Administrator Preston has more than a quarter century of management experience, including senior leadership roles at two multi-billion dollar corporations and in the financial service industries. He understands the world of commerce and free enterprise from every angle. Prior to his appointment to the SBA, Administrator Preston served at the ServiceMaster Company starting in 1997 most recently as Executive Vice President of Strategic Services. He previously served as the company's Executive Vice President and Chief Financial officer.[8] Administrator Preston served as Senior Vice President and Treasurer of First Data Corporation from 1993 to 1997. Earlier in his career, he was a Senior Vice President in Investment Banking at Lehman Brothers. Administrator Preston earned his bachelor's degree, with highest distinction, in political science from Northwestern University in 1982 and his MBA from the University of Chicago in 1985.[8]

The president has credited Preston with turning the SBA around following sharp criticism of the agency's efforts to help small-business owners recover from Hurricane Katrina. [11] The New Orleans Times-Picayune said Preston received good reviews for overhauling the SBA's disaster loan program after Hurricane Katrina.[24] Velazquez contended the SBA's disaster loan program remains "a failure," and said Preston has failed to do enough to see that large businesses don't get contracts meant for small businesses.[1] With a portfolio of direct and guaranteed business loans, venture capital investments and disaster loans worth over $80 billion, SBA is the largest single financial backer and facilitator of technical assistance and contracting opportunities for the Nation's small businesses.[8] The SBA is a small agency that funnels financing--through direct loans and guarantees--to small businesses throughout the country.[39]

The SBA and USIBA alliance will strengthen and expand small business exporting opportunities through education, advocacy and matchmaking opportunities. SBA will provide USIBA with timely information on the agency's programmes, services and resource partners, update them on events that will advance their mission and provide speakers at USIBA events. It would also invite them to SBA-sponsored events and provide a hyperlink from SBA's website to USIBA's website, and assign a point of contact to serve as a liaison between SBA and USIBA. As part of the pooling of resources, USIBA will cooperate with SBA and its resource partners to provide information to members about its businesses development programmes and services.[40]

In 2006, the most recent year for which there is data, some 239,000 U.S. small businesses were exporters, says Chad Moutray, chief economist at the Small Business Administration Office of Advocacy.[47] Laurel Delaney, author of the Global Small Business Blog and a consultant to small businesses that go international, says the first step is to talk to one's banker. "Ask where are the best markets that I should be going internationally if I want to finance this deal," Delaney says.[47]

Lenders and borrowers find the loan process simpler and quicker due to streamlined processes and improved support. Today, Federal agencies work harder to reach their small business procurement goals, and agency employees have better tools and training to do their jobs.[8] Our solutions must restore confidence in our markets, while not erecting barriers to future entrepreneurs, investors and home buyers. In addition to the reforms we made at the SBA — and I appreciate your mentioning them — I'm especially proud of the work we are doing in inner-city communities to help small business owners bring lasting change to places in our country that need it the most — by bringing jobs, by bringing economic opportunity, and by bringing investment.[37]

Rep. Nydia Velázquez (D-N.Y.), chairwoman of the Small Business Committee, said SBA has many major problems Preston has failed to correct.[35]

How is improving customer service, employee satisfaction and bullying small companies going to help solve the Housing Crises? There are 1.4 million homeowners that are facing or are in foreclosure. Steven Preston doesn't sound like he is qualified to help combat this major issue.[28] "As we help people pursue the American Dream, we need to have a market to operate fairly and effectively for all Americans, and our solutions must restore confidence in our markets, while not erecting barriers to future entrepreneurs, investors and home buyers," Mr. Preston said in brief remarks at the White House. He declined a request for an interview.[27] Property records show that Jackson bought a house in an exclusive gated community here in 2004. Local residents in this town of 33,000 people have watched his comings and goings with interest. Jackson hobnobs with local businessmen, golfs, dines with friends and chats with neighbors who live alongside his vacation home, a cream-colored colonial with white columns. He socialized with Hairston, who had been looking for work beyond South Carolina after his stucco business withered in the face of competition from Hispanic-owned companies here, according to people who know him. He would occasionally bump into Hollis at parties or gatherings hosted by mutual friends.[30]

More than $6 billion in loans have been disbursed to more than 160 Gulf Coast residents. "He knows how to tackle a problem, devise a solution and get results," Bush said in a ceremony at the White House. "That's exactly the kind of leadership I was looking for." Jackson also attended the ceremony and Bush referred to him as "a decent, dedicated and compassionate man."[33] Only 2,000 FHA Secure loans, which carry lower interest rates, have been issued to borrowers who were at risk of default. The White House has resisted efforts to expand the program dramatically because of concerns that the government might be bailing out people who have little hope of repaying any loan or who bought a house they could not afford.[15]

Since Friday is Jackson'''s last official day in the post, the agency would have remained headless without an announcement from the White House.[41] The White House declined to comment on Jackson's successor, or confirm the timing of an announcement.[42]

The White House and Democrats have sparred over what effort is needed to reverse the slump, and Democrats could use Mr. Preston's nomination as a bargaining chip.[27] Mr. Dodd has stalled White House nominations before, delaying votes on three nominations to the Federal Reserve for almost a year.[27]

If confirmed, Mr. Preston would leave behind an agency that spent $1.2 billion in fiscal 2007, and take over one of the government's larger bureaucracies, which spent roughly 40 times as much that year. [27] Preston has to restore the credibility of the agency that is supposed to be a major player in the housing crisis[15] Among Preston's challenges as HUD chief will be to deal with a housing crisis that has roiled the markets and led to an economic downturn.[45] The HUD job presents a wonderful opportunity to be the next great American bureaucratic laughingstock. The housing crisis still doesn't have its Michael Brown.[39]

Bush said HUD needs stronger leadership at a time when the housing market is struggling.[35] '''The department requires strong leadership at a time when our housing market is experiencing a time of uncertainty,''' Bush said of Jackson. '''He knows how to tackle a problem, devise a solution and get results. That'''s exactly the kind of person I was looking for. He will play a central role in addressing out nation'''s housing problems.'''[41]

Mr. Jackson would return to that theme time after time while in Dallas. "If you are really interested not just in desegregation but in integrating people into the mainstream of society," he said in 1989, "it just does not make sense to concentrate low and moderate-income persons in one place." In 1990 he rode out protests by West Dallas activists who wanted vacant public housing units turned over to the homeless. One minister accused him of "lying" and "playing games," but Mr. Jackson kept his cool. "I would not let anyone excite me into making statements that would fuel the fire," he said then. That wasn't always the case, however. Just three months after his verbal scuffle with Ms. Halstead, Mr. Jackson had a physical one with then-council member Paul Fielding after another contentious City Hall meeting.[29] Mr. Fielding filed a misdemeanor assault charge against Mr. Jackson, who initially denied that anything happened. When the two men settled their differences weeks later, however, Mr. Jackson apologized and Mr. Fielding dropped the charge. Asked why he at first said there was no incident, Mr. Jackson said at the time, "I misspoke." Despite his criticism of concentrating subsidized housing in the city's most blighted neighborhoods, in the early 1990s Mr. Jackson backed a huge plan that would have done just that.[29]

Jackson is responsible for the indifference and neglect of HUD, which has worsened our housing problems. [25] Martinez also was a strong backer of former HUD Secretary Alphonso Jackson, who resigned under an ethics cloud last month.[9] Secretary Jackson is one of the longest serving members of my administration. I know him well, he's a decent man, a dedicated man and he's a compassionate man. He's worked tirelessly at HUD to help America's homeowners. He has transformed a lot of lives, and America is a better place because of your service.[37]

'There are a substantial number of successful African-Americans who know each other through business and politics,' Parker said. Some African-Americans here bristle at the notion that Jackson's casual friendships with the black professionals who flock to this resort town have become part of a federal investigation. 'You get an African-American in a position where he can help black folks, and people just don't like it,' said Larry Holman, president of the Beaufort County Black Chamber of Commerce, who knows Jackson and Hairston. "It's unfortunate," Holman said.[30] The nominee, if confirmed by the Senate, would replace Alphonso Jackson, who stepped down in the midst of a federal investigation.[38] Don't forget, the job vacancy was created when Alphonso Jackson stepped down amid an investigation into alleged corruption.[39]

Alphonso Jackson was forced to resign. Bush's appointment of his Dallas Neighbor represents cronyism and corruption at it's worst.[25]

Preston would take over from Alphonso Jackson, who stepped down amid allegations of nepotism and other improper conduct.[24]

Preston "understands the important role the housing market plays in our economy," the official said. [34] Boy, Mr. Preston will have to work quickly to destroy the American housing market completely in order to be able to receive the Medal of Freedom from Busch. He only needs to look to some of the past recipiants from Busch for the recipe on how to be awarded for a headlong dive into failure.[25]

Together, with Congress and the administration, we look forward to implementing new legislation and regulation that will help stabilize the housing market.[7]

I'm obviously very honored by the confidence you've placed in me, and if confirmed will be very proud to serve as the 14th Secretary for Housing and Urban Development.[37] The housing authority, the city and federal officials wanted to double the number of families living in the sprawling West Dallas projects, putting 7,000 impoverished, mostly black people in an area long hobbled by poverty, crime and pollution.[29] To the housing chief, who grew up poor in South Dallas, the city's plans smacked of a lingering desire for segregation using federal housing rehabilitation money to keep poor minorities out of white areas.[29]

In another instance of alleged favoritism that came to light in February, the Philadelphia housing authority alleges that Jackson retaliated against the agency because it refused to award a vacant lot worth $2 million to soul music producer-turned-community developer Kenny Gamble for redevelopment of a public housing complex. [20] Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.[18] The Lubbock resident has presented numerous training workshops, many geared toward women business owners, through Women Entrepreneurs, Texas Tech's Small Business Development Center, the Lubbock Chamber of Commerce and the Dallas Small Business Development Center.[48]

I'd also like to thank my wife, Molly, and my great five children who are here to share with moment. — and all the support they give me. You know, when I joined your administration almost two years ago, it was because I believed so strongly in the vision of helping people reach their dreams of owning a business, owning a retirement portfolio and, of course, owning a home. [37] Within months of Steve's reforms, the backlog of loans fell 80 percent, and response times improved by 90 percent. Today more than $6 billion in SBA loans are helping more than 160,000 Gulf Coast families rebuild their homes, their businesses and their lives.[37] SBA matched every loan applicant with a case manager to provide the compassion and expertise that applicants need to navigate the loan process. Within months of his reforms, the backlog of loans fell 80 percent, and response times improved by 90 percent. Today, more than $6 billion in SBA loans are helping more than 160,000 Gulf Coast families rebuild their homes, businesses, and lives.[8]

At the SBA, Mr. Preston is credited with speeding up the processing of government-backed loans following the 2005 Gulf Coast hurricanes. [27]

Preston has spent 25 years in financial and operational leadership positions. Before joining SBA, he was an executive with ServiceMaster. Before that, he was a senior vice president and treasurer of First Data Corporation and an investment banker at Lehman (LEE'-muhn) Brothers.[31] Preston has a background of 25 years in financial and operational leadership positions. Before joining SBA, he was executive vice president of The ServiceMaster Co., where he also served as chief financial officer. Before that, he was a senior vice president and treasurer of First Data Corp. and an investment banker at Lehman Brothers.[19]

Preston is surprisingly fair about listening - and compromising - with liberals, rather than taking marching orders from the President and right-wing think tanks. He has actually expanded minority lending and affirmative action set-aside programs, the bane of the military-industrial, banking, and construction industries. I say this based on personal knowledge, as well as the knowledge and opinion of _Democrats_ who work for him in the senior executive service of the SBA. The allegation he has no entrepreneurial credentials is preposterous.[28]

In remarks on Friday, Bush praised Preston's record leading the SBA and a "quarter-century of management experience."[10] Bush's hope could be unfulfilled, as Dodd today expressed concerns that Preston's background is not housing-centric. Dodd's committee must approve the nominee before his name can be sent for full Senate consideration.[5] For his part, Preston offered few clues yesterday of his plans for the agency in his brief appearance with Bush.[15] The agency has been a central player in the Bush administration's response to the subprime mortgage crisis.[34] "HUD's crisis must be resolved without delay. The fact remains the agency Mr. Preston has been responsible for leading is still plagued by serious problems of its own."[1] Prestons selection to the HUD job was first reported by National Journals CongressDaily.[19]

The change at the top of HUD comes at a crucial time for the U.S. housing sector.[34] "We'd like to see HUD become a real player in preventing foreclosures," said Alan Fishbein, housing director of the Consumer Federation of America. "Their efforts have been too minimal to have any real impact, given the scope of the problem and the number of people facing foreclosure.[15]

Mr. Jackson's tenure at HUD was dogged by accusations of improper behavior related to contracts.[27] "Large businesses continue getting small-business contracts, SBA's Katrina disaster relief program is a failure and morale of the agency's personnel is one of the lowest in the federal government," Velázquez said.[35] SBA is working out a proposed acquisition rule intended to give woman-owned small businesses more opportunities in federal contracting.[35] "Make sure you're looking at ease of doing business." Despite all the good news for U.S. exports, small businesses should probably keep their optimism in check.[47] Of course, not all small businesses have the ability to reach Asian consumers or spend lots of money flying around the world. They don't have to. The good news is, with the U.S. dollar now almost at parity with the Canadian dollar, they need only go north of the border to find tremendous opportunities.[47]

Steven Preston is known for bullying small companies. He has no experience as an entrepreneur. [28] Under Preston, the backlog dropped by 80 percent and approval times improved 90 percent, Bush said.[33] Preston, married with five children, was sworn in as SBA administrator July 11, 2006.[14] The senior administration official described Preston as an effective manager and problem solver with a strong financial background.[34] I sought a consensus-builder who's earned the respect of Republicans and Democrats, who can get things done. I found these qualities and much more in Steve Preston.[37] "As we help people pursue the American Dream, we need to have a market to operate fairly and effectively for all Americans," Preston said.[15]

Specifically, HUD is dedicated to increasing ownership among minorities which Secretary Jackson has done by significant measure: 3.5 million more since 2002. [43]

SOURCES

1. Bush nominates SBA chief to replace Alphonso Jackson at HUD - Dallas Business Journal:
2. Bush names Preston as HUD chief - - Breaking News, Political News & National Security News - The Washington Times
3. Bush's HUD Nominee
4. www.kansascity.com | 04/18/2008 | Bush names new HUD secretary
5. The Washington Times, America's Newspaper
6. President Bush Nominates New Housing Secretary | April 19, 2008 | AHN
7. NAR Commends Preston's Nomination as HUD Secretary
8. Fact Sheet: Steve Preston: A Qualified Leader to Help American Families
9. Martinez gives thumbs up to new HUD pick | Q: Florida Politics
10. TheHill.com - Bush'''s HUD nominee gets tepid reception from Dems
11. SBA Chief Tapped for Housing Agency - small business - government - Steven Preston
12. Mortgage Orb: Content / Residential Mortgage / Bush Selects SBA Chief Steve Preston To Take Over HUD
13. KPLC 7 News, Lake Charles, Louisiana |Bush chooses SBA administrator to head HUD
14. CongressDaily - SBA'''s Preston To Replace Jackson As HUD Secretary
15. Bush Picks Executive for HUD - washingtonpost.com
16. DSNews.Com Default Servicing In Print and Online - Formerly REO Magazine
17. Charleston Daily Mail - News - Bush to name SBA chief Steve Preston to take over HUD
18. UPDATE 3-Bush nominates SBA's Preston as US housing chief | Markets | Markets News | Reuters
19. Bush chooses SBA chief Steve Preston to take over HUD - International Herald Tribune
20. The Associated Press: Bush to name SBA chief Steve Preston to take over HUD
21. Lawmakers React to SBA Head's Possible Move to HUD - Small Business
22. Kerry on Preston Nomination for HUD
23. Pelosi Statement on President's Nomination for HUD Secretary
24. SBA's Preston nominated as HUD secretary - UPI.com
25. CNN Political Ticker: All politics, all the time Blog Archive - Official: Bush to nominate new HUD secretary « - Blogs from CNN.com
26. SunHerald.com : Barbour praises Bush choice of new HUD secretary
27. Preston Is Picked to Run HUD, Despite Little Housing Experience - WSJ.com
28. Think Progress
29. From Dallas to D.C., Alphonso Jackson was at center of controversies | Dallas Morning News | News for Dallas, Texas | Headline | National News
30. islandpacket.com | Former HUD chief's business relationships questioned
31. KMPH Fox 26 Central San Joaquin Valley News Source in Fresno, California Entertainment, News, Sports and Weather | Bush chooses SBA chief Steve Preston to take over HUD
32. The Associated Press: Bush chooses SBA chief Steve Preston to take over HUD
33. Preston tapped as new HUD head - Breaking News from New Orleans - Times-Picayune - NOLA.com
34. Washington Wire - WSJ.com : Bush to Name SBA's Preston as HUD Chief
35. Bush nominates SBA chief to head HUD
36. Bush taps SBA administrator to head HUD | NECN
37. The Associated Press: Conference with Bush and HUD chief nominee Steve Preston
38. Dodd Fails to Jump for Joy Over New HUD Pick - Jesse A. Hamilton | On Background
39. Why Preston Should Have Stayed at the SBA - The Home Front (usnews.com)
40. » US small business agency to promote exports to India - Thaindian News
41. CQ Politics | Bush Names SBA Chief to Replace Jackson as HUD Secretary
42. Washington Wire - WSJ.com : White House Expected to Name HUD Nominee as Soon as Friday
43. Newsmax.com - HUD Secretary Provided American Dream to Many
44. The Associated Press: Bush to name SBA chief Steven Preston to take over HUD
45. FederalTimes.com
46. Funding OK'd for homeless veterans- MassLive.com
47. The Bright Side of the Dollar's Decline - US News and World Report
48. Langhill receives award from national SBA group | Lubbock Avalanche-Journal

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