The Small Business Regulatory Reduction Act aims to limit the costs imposed on small businesses due to Small Business Administration rule changes, ensuring these costs do not exceed $0 annually starting in fiscal year 2026, and requires annual reporting to Congress on rules affecting small businesses.
Beth Van Duyne
Representative
TX-24
The Small Business Regulatory Reduction Act aims to ease the financial burden of federal regulations on small businesses. Starting in 2026, the Small Business Administration must ensure that new rule changes do not increase costs for small businesses. The Act also requires the Small Business Administration to report annually to Congress on all federal rules impacting small businesses. No additional funds are authorized to implement the Act.
SBA Rule Changes Can't Cost Small Businesses a Dime Starting 2026, New Bill Says
The "Small Business Regulatory Reduction Act" sets a pretty bold goal: starting in fiscal year 2026, any rule changes from the Small Business Administration (SBA) can't cost small businesses anything. Yep, the bill aims for a $0 regulatory budget for each small business affected by new SBA rules (SEC. 2).
Zeroing Out Costs
The core of this bill is all about limiting the financial impact of SBA regulations on small businesses. Basically, it means the SBA has to figure out how to make changes without passing on any costs to the businesses themselves. Think of it like a contractor promising that any renovations they make won't leave you with unexpected bills. This could be a big deal for small business owners, from the local bakery to the tech startup down the street, potentially freeing up cash for things like hiring or expanding.
Tracking the Impact
Besides the $0 cost rule, the Act also requires a new annual report to Congress (SEC. 2). Starting in 2025, the SBA will have to list out all the rules from other federal agencies that impact small businesses. Imagine getting a yearly rundown of every new regulation that might affect your business, all in one place. This could help business owners stay informed and maybe even give them a heads-up on potential challenges coming down the pike.
The Fine Print
While the idea of zero-cost regulations sounds great, the bill also states that no extra funds will be authorized to implement it (SEC. 3). This might mean the SBA will have to get creative in how it manages rule changes. It's like being told to redecorate your house without spending any extra money – you might have to reuse and repurpose what you already have. It will be interesting to see how the SBA balances making necessary updates with keeping costs down for small businesses. The bill defines key terms like 'small business regulatory budget' (SEC. 2), which is essentially the cost a small business faces due to a rule change. This definition will be crucial in how the law is actually applied.