NEWSRELEASE
For Release: September 21,
2005 The Regulatory Flexibility Act At Twenty-Five:
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 05-44 ADVO
Press Kit
Regulatory Relief For Small Business
WASHINGTON, D.C. – There was no cake, and no candles to blow-out, but a large Senate hearing room was full yesterday as small business owners, trade association representatives, think tank scholars, congressional staff, and elected officials came together to celebrate 25 years of the Regulatory Flexibility Act (RFA). The RFA, designed to make sure that small businesses are considered during the regulatory process, was signed into law on September 19, 1980.
The RFA, unique among federal laws, requires federal rule writers to consider alternatives that will lessen a proposed rule’s impact on small business, while at the same time meeting regulatory objectives such as environmental quality, workplace safety, and travel safety.
Speaking before the symposium, U.S. Senator Jim Talent (R-Mo.), who served as Chairman of the Small Business Committee as a member of the U.S. House, said, “Small businesses create the majority of new jobs in the country and the government should be a partner, not an obstacle to their success. I’m a big believer that small business is the avenue of opportunity for people of all backgrounds and socio-economic status. Regulatory relief efforts like the Regulatory Flexibility Act have helped America's small businesses flourish which has contributed to economic growth and prosperity.”
Over the last quarter century the Office of Advocacy of the U.S. Small Business Administration, by monitoring federal agency compliance with the RFA, has saved small businesses literally billions in foregone regulatory compliance costs. In 2004, the latest year for which figures are available, Advocacy saved American small businesses over $17 billion. Those savings ensured that small business resources, which would have been spent on overly burdensome new regulations, were instead available for things such as hiring new employees and making new investments.
But, there is more to do. A new study just released by the Office of Advocacy shows that America’s smallest firms bear the largest per employee burden of federal regulatory compliance costs. Firms with fewer than 20 employees annually spend $7,647 per employee to comply with federal regulations, compared with the $5,282 spent by firms with more than 500 employees. Moreover, the study found that small businesses face a 45 percent greater burden than their larger counterparts.
The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues. For more information, visit the Office of Advocacy website at www.sba.gov/advo.
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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an
independent voice for small business within the federal government. The presidentially
appointed Chief Counsel for Advocacy advances the views, concerns, interests
of small business before Congress, the White House, federal agencies, federal
courts, and state policy makers. For more information, visit www.sba.gov/advo,
or call (202) 205-6533.