U.S. Chamber Hails Executive Order for Agency Rules to Consider Small Business Impact

WASHINGTON, D.C. — The United States Chamber of Commerce today applauded President Bush's executive order further requiring agencies to consider small business' concerns in the promulgation of federal rules.

"Everyone knows that small business is the fastest growing area of our economy," said Giovanni Coratolo, U.S. Chamber director of small business policy. "Small businesses have long been overburdened by complex and sometimes unnecessary bureaucratic red tape. On average they incur up to 60% more in compliance costs than larger businesses which has had a negative impact on the their bottom line and our overall economy."

Delivering on his promise to give small business a stronger voice in the federal rulemaking process, the President's executive order calls for agencies to issue in writing within 180 days, procedures and policies on how the draft rules will impact small businesses.

The U.S. Chamber has long urged agencies to adhere to the letter and spirit of the Regulatory Flexibility Act that requires them to take into account the impact on small business during agency rulemaking. The executive order will require them to articulate exactly how they intend to adhere to their obligations under the law.

The order also requires the agencies to submit for comment to the Office of Advocacy under the Small Business Administration (SBA) any draft rules that may have a significant economic impact on a substantial number of small businesses. The agency is then required to give consideration to any comments provided by the Office of Advocacy on behalf of small business.
"In many cases agencies were simply ignoring laws put into place to give small businesses a voice in the regulatory process," Coratolo continued. "Agencies must realize that including the concerns of small businesses in the rulemaking process provides a better end result without compromising the intent of the proposed rule."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

# # #

02-136