S.387 - Small Business Regulatory Reduction Act (119th Congress)
Summary
The Small Business Regulatory Reduction Act (S.387) aims to reduce the regulatory burden on small businesses by requiring the Small Business Administration (SBA) to ensure that the regulatory budget for each small business concern is not greater than zero in fiscal year 2026 and subsequent years. The bill also mandates the SBA Administrator to report annually to Congress on rules issued by other federal agencies impacting small businesses. No additional funds are authorized to carry out the Act.
Expected Effects
If enacted, this bill would likely lead to a reduction in the costs associated with regulatory compliance for small businesses. The SBA would need to carefully evaluate the financial impact of its rulemakings. The annual report to Congress would increase transparency regarding the regulatory burden imposed on small businesses by other federal agencies.
Potential Benefits
- Reduced regulatory costs for small businesses, potentially freeing up resources for growth and investment.
- Increased transparency regarding the impact of federal regulations on small businesses.
- Streamlined regulatory processes within the Small Business Administration.
- Potential for increased competitiveness of small businesses due to lower compliance costs.
- Encourages the SBA to be more mindful of the financial impact of its rules on small businesses.
Potential Disadvantages
- The bill does not provide additional funding to implement these changes, potentially straining the SBA's existing resources.
- The definition of 'small business regulatory budget' may be difficult to quantify and enforce.
- The focus on SBA rulemakings might overlook the cumulative impact of regulations from other agencies.
- The bill may lead to unintended consequences if the SBA prioritizes cost reduction over other important considerations, such as consumer protection or environmental standards.
- The effectiveness of the bill depends on the SBA's ability to accurately assess and report the costs of regulations.
Constitutional Alignment
The bill appears to align with the spirit of promoting general welfare, as mentioned in the Preamble of the US Constitution, by aiming to reduce burdens on small businesses. Congress's authority to regulate commerce (Article I, Section 8) provides a basis for enacting legislation that affects businesses, including small businesses. The reporting requirement imposed on the SBA is consistent with Congress's oversight role.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).