SBA Office of Advocacy saves billions for small business

American small businesses enjoyed $6 billion in cost savings last year, due to the efforts of the Office of Advocacy of the U.S. Small Business Administration. That money would have gone to comply with overly burdensome federal regulations had the Office of Advocacy not worked with federal agencies to find effective and less burdensome regulatory alternatives.

"We've noticed an increase in the number of agencies that make a good faith effort to comply with the Regulatory Flexibility Act," said Thomas M. Sullivan, chief counsel for advocacy, in a Jan. 23 news release. "By choosing less burdensome alternatives they are able to meet regulatory goals without endangering job-creating small businesses. We will continue to work with federal agencies to ensure that they follow the law and listen to the voice of small business early in their regulatory process," he said.

The 2003 compliance cost savings allowed thousands of small businesses to remain open. The savings also allowed thousands of others to invest in new jobs, equipment or other resources.

The "Report on the Regulatory Flexibility Act, FY 2003" details foregone regulatory compliance costs, as well as an overview of federal agency adherence to the law requiring consideration of regulatory alternatives. The report was formally presented to Congress Jan. 22.

The report also reviews agency compliance with President Bush's Executive Order 13272, which directs federal agencies to work closely with the Office of Advocacy when considering their regulatory affect on small business. The executive order puts new emphasis on how regulatory relief can help small business.

"We expect even greater savings once the executive order is fully implemented next year," said Sullivan.

The Office of Advocacy 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. The full report is available online at www.sba.gov/advo.