The Small Business Regulatory Reduction Act caps Small Business Administration rulemaking costs to small businesses at $0 starting in 2026 and requires annual reports to Congress on federal rules impacting small businesses.
Roger Marshall
Senator
KS
The Small Business Regulatory Reduction Act aims to reduce the financial burden of federal regulations on small businesses. Starting in 2026, the Small Business Administration's rulemaking costs to small businesses will be capped at $0. The Administrator of the Small Business Administration must submit annual reports to Congress identifying all federal rules impacting small businesses. This act will be implemented without authorizing any additional funding.
Small Business Regulatory Reduction Act: Zeroing Out SBA Rulemaking Costs by 2026
The Small Business Regulatory Reduction Act is straightforward: it aims to cut the costs that Small Business Administration (SBA) regulations impose on small businesses down to zero, starting in the fiscal year 2026. This means that, by law, the SBA can't pass on any costs from its rulemaking processes to the small businesses affected by those rules.
Zero Cost, Big Impact
The core of this bill is simple—no more costs passed down to small businesses from the SBA's rulemaking. (SEC. 2) Think of a local bakery or a tech startup; under this law, they wouldn't have to foot the bill for the SBA's regulatory processes. This change kicks in officially in the fiscal year 2026, giving businesses time to adjust to the new setup.
Keeping Tabs: Annual Reports to Congress
Beyond just cutting costs, the Act also demands more transparency. Starting 60 days after the end of the fiscal year 2025, the SBA Administrator must report annually to Congress. (SEC. 2) This report will list every rule issued by any federal agency that affects small businesses, identifying both the rule and the agency behind it. This means businesses get a clearer view of the regulatory landscape—like knowing which new rules might affect your coffee shop or construction firm, and where they came from.
Doing More with Less
Here's the kicker: the bill explicitly states that no additional funds are authorized to implement it. (SEC. 3) This means the SBA and other agencies need to find ways to comply with these new requirements using their existing budgets. It's like being told to throw a bigger party without getting any extra cash—you've got to get creative with what you already have.
Real-World Implications
For small business owners, this could mean less financial strain and more predictability. For example, a family-run hardware store won't have to worry about unexpected costs from new SBA regulations. However, it also raises questions about how agencies will manage to keep things running smoothly without additional resources. Will they cut corners elsewhere, or will they become more efficient? It's a bit of a tightrope walk.
In short, the Small Business Regulatory Reduction Act could be a significant shift for small businesses, potentially easing their financial burdens and increasing regulatory transparency. But, the real test will be in how agencies adapt to these changes without extra funding.