April 24, 2008

The Honorable Olympia J. Snowe
United States Senate
Washington, DC 20510

The Honorable Mark Pryor
United States Senate
Washington, DC 20510

Dear Senator Snowe and Senator Pryor:

I am writing to commend your introduction of the “Independent Office of Advocacy and 
Small Business Regulatory Reform Act of 2008.”  This legislation will add transparency 
to the Office of Advocacy’s budget and will bolster the responsiveness of government to 
small business concerns raised during the rulemaking process.

As you know, my position as Chief Counsel for Advocacy was created so that small 
businesses would have an independent voice within the federal government.  Due to my 
office’s independence, these views do not necessarily reflect the position of the 
Administration or the U.S. Small Business Administration (SBA).  This letter was not 
circulated to the Office of Management and Budget (OMB) for comment.

I.	Budgetary Line Item for the Office of Advocacy

The Office of Advocacy’s ability to impact the regulatory process for the benefit of small 
entities depends greatly on the office’s independence.  Congress, the President, and 
policy leaders throughout the country value comments, opinions, and research from the 
Office of Advocacy because they know those views represent an unfiltered perspective.  I 
was sworn in as Chief Counsel in February of 2002, and my ability to advocate for small 
business honestly and independently has never been compromised.  However, as long as 
the Office of Advocacy remains merged within SBA’s overall budget, the temptation 
remains for SBA leadership to influence the views of the Office of Advocacy by 
controlling its budget.

My support for a budgetary line item to include the entire operating budget for the Office 
of Advocacy, similar to funding for the SBA’s Inspector General, comes as no surprise to 
you or the Committee on Small Business & Entrepreneurship.  I have publically 
supported legislation in the House and Senate that creates a line item budget and 
guarantees long term independence for the Office of Advocacy.


II.	Proper Consideration of Small Entities in Agency Rulemaking

In August of 2002, President Bush signed Executive Order 13272, “Proper Consideration 
of Small Entities in Agency Rulemaking.”  The President’s action brought increased 
attention by agencies toward their responsibilities under the Regulatory Flexibility Act.  
The Executive Order requires greater communication between agencies that promulgate 
regulations and the Office of Advocacy, resulting in increased awareness by the small 
business community of draft regulations that would benefit from their input.

The “Independent Office of Advocacy and Small Business Regulatory Reform Act of 
2008” codifies key elements of the Executive Order.  Comments on proposed regulations, 
filed by the Office of Advocacy, will have to be addressed by the promulgating agency 
under your legislation.  This will ensure that agencies are more directly responsive to the 
views and concerns of small entities.  

The “Independent Office of Advocacy and Small Business Regulatory Reform Act of 
2008” will go far to improve the business climate for entrepreneurs.  I welcome this 
opportunity to voice my strong support for this legislation and I look forward to working 
with you to ensure its consideration and passage.  If this letter prompts questions, 
comments, or concerns that you feel I should respond to, please contact me directly at 
(202) 205-6539 or via e-mail at mailto:thomas.sullivan@sba.gov.  Thank you for your 
continued attention to the needs of small business.

Sincerely,



Thomas M. Sullivan
Chief Counsel for Advocacy



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