SBA: RFA Act Helps Small Businesses Save Billions

Efforts to help agencies comply with the Regulatory Flexibility Act (RFA) have paid off: According to the Small Business Administration's (SBA) Office of Advocacy, the measure helped save the nation's small businesses $2.6 billion in compliance costs and $285 million in annually recurring savings in 2007.

RFA, which was proposed in 1980 and amended in 1996, requires federal agencies to review the economic impacts of proposed regulations on small entities and consider less burdensome alternatives.

In 2007, the Office of Advocacy reviewed over 469 regulations to assess RFA compliance, convened 29 roundtable discussions with small entity stakeholders and submitted 30 letters for public comment to federal agencies on regulatory proposals.

In addition, it completed RFA rule writer training in all major regulatory agencies, as mandated by President George W. Bush’s Executive Order 13272 in 2002. The order requires federal agencies to establish written procedures and policies explaining how they measure the impact of their regulatory proposals on small entities and to vet those policies with the Office of Advocacy, among other duties.

“Small firms are better equipped to do what they do best – grow the economy – when they are freed from coping with overly burdensome or duplicative regulations,” said Chief Counsel for Advocacy Thomas Sullivan. “Federal agencies are learning that the RFA and Executive Order 13272 are valuable tools to help them consider the impact of their rules while still meeting regulatory goals.”

For more information and a complete copy of the report, visit the Office of Advocacy Web site at

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