Bill Overview
Title: Small Business Regulatory Reduction Act
Description: This bill requires the Small Business Administration to ensure that for each fiscal year the cost to small businesses of the administration's rulemaking (including the modification or repeal of a rule) is not greater than zero. The administration also must report on any regulations issued by other federal agencies that have an impact on small businesses.
Sponsors: Rep. Van Duyne, Beth [R-TX-24]
Target Audience
Population: Small business owners and their employees
Estimated Size: 60000000
- The bill directly affects small businesses as it targets reducing the regulatory cost burden on them.
- The Small Business Administration's actions are specifically aimed at regulatory rulemaking that impacts small businesses.
- Small businesses represent a significant portion of businesses globally and within the United States.
- While the precise number of small businesses can vary, it is a substantial portion of the business community.
- The impact is mainly on the economic and operational aspects of small businesses due to changes in regulatory costs.
Reasoning
- The policy targets small business owners and their employees in the United States, aiming to reduce regulatory burdens and costs associated with rulemaking.
- Considering the budget constraints, the policy is expected to have varied impacts across different small businesses, depending on their size, industry, and location.
- Some small business owners expect increased operational efficiency and cost reductions due to fewer regulatory barriers, enhancing their business environment.
- However, not all small businesses will experience significant changes, as some might already have low regulatory costs.
- The policy is expected to have minimal direct impact on individuals not associated with small businesses, like employees of large corporations or unemployed individuals.
- The distribution of small businesses across industries means the policy's immediate effects could be more pronounced in sectors with traditionally high regulatory burdens, like finance, healthcare, and environmental sectors.
- Geographical distribution matters as well, with small businesses in states with high regulations potentially benefiting more than those in less-regulated areas.
- The policy's main goal is to ensure that small businesses are not financially burdened by regulatory compliance, thus supporting their growth and sustainability.
Simulated Interviews
Owner of a small tech startup (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The high cost of compliance has always been a challenge for our startup.
- If regulatory costs decrease, we can invest more in innovation and hiring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Consultant for small businesses (New York, NY)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Many of my clients struggle with regulatory requirements.
- Easing these will greatly help them thrive, particularly those in heavily-regulated industries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 7 |
| Year 20 | 10 | 7 |
Owner of a small eco-friendly fashion brand (Los Angeles, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Regulatory compliance in eco-friendly production is costly.
- Assistance in reducing these costs could aid our growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Owner of a local restaurant chain (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I don't expect major changes as our regulatory costs are not a major issue currently.
- However, any potential savings could still be reinvested into business improvements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Manager at a non-profit supporting small businesses (Portland, OR)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- It's sometimes overwhelming how much regulation new businesses have to navigate.
- Simplification through this policy could allow me to focus more on strategic support rather than just compliance logistics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Small business owner in retail (Seattle, WA)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Over the years, we've adapted to regulations, but any reduction in costs is welcome.
- It will be interesting to see if these changes are substantial enough to make a difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small business owner in the travel industry (Miami, FL)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- Travel industry regulations are extensive.
- A reduction would be beneficial, especially in a post-pandemic world.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Owner of a digital marketing agency (Phoenix, AZ)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- As a digital service provider, regulatory impacts are indirect.
- However, reduced burdens on my clients could positively affect my business too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Owner of a small manufacturing business (Denver, CO)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Regulations have always been a significant cost factor for us.
- Reducing these costs could help expand operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Freelance consultant for tech startups (Boston, MA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Easier regulatory processes will encourage more startups to emerge, indirectly benefiting my consultancy.
- This policy is much needed in the tech startup scene.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $25000000 (Low: $15000000, High: $35000000)
Year 2: $26000000 (Low: $16000000, High: $36000000)
Year 3: $27000000 (Low: $17000000, High: $37000000)
Year 5: $28000000 (Low: $18000000, High: $38000000)
Year 10: $30000000 (Low: $20000000, High: $40000000)
Year 100: $35000000 (Low: $25000000, High: $45000000)
Key Considerations
- Ensuring the Small Business Administration can effectively track and enforce cost neutrality of its regulations is crucial.
- The interaction with other federal agencies for determining and mitigating negative regulatory impacts is essential for success.
- Potential litigation or challenges associated with redefining existing regulations can impact cost efficiency.