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July 5, 2018 by James Goodwin

Borrowing from CPR Playbook, Small Business Administration Brings New 'Win-Win' Approach to Regulations

When it comes to regulatory protections for health, safety, and the environment, the Small Business Administration (SBA) and its Office of Advocacy don't always put the public interest first. Falling in line with industry and small-government conservatives, it often opposes public protections, particularly where small businesses are concerned. So I was delighted to see a faint ray of sensibility peek through the SBA's usual anti-safeguard cloud last week when it issued a press release announcing its collaboration with a professional organization of accountants to help promote regulatory compliance assistance for small businesses. 

The SBA is a government agency that helps support the formation and growth of small businesses in the United States, relying on various programs such as subsidized loans and government contracting preferences. The Office of Advocacy is a semi-autonomous bureau located within SBA that is charged with advocating for the interests of small businesses in the regulatory process. As CPR Member Scholars and staff have meticulously documented over the last several years, though, the approach that the SBA and its Office of Advocacy take on regulatory issues is flawed in theory and woeful in practice. 

To be sure, small businesses are disproportionately impacted by regulations, given their inability …

Jan. 22, 2015 by James Goodwin
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Just as The Sixth Sense makes more sense when you realize that Bruce Willis’s character has been dead the whole time, the Small Business Regulatory Flexibility Improvements Act (SBRFIA)—the latest antiregulatory bill being championed by antiregulatory members of the House of Representatives—makes more sense when you realize that it has nothing to do with helping small businesses at all.  Rather, it’s all about helping powerful corporate interests increase their profits at the expense of public health, safety, and the environment.   The twist ending to this nightmare of a bill is that real small businesses—the very entities the bill’s sponsors claim to be helping—are left in a worse position than if the bill were never enacted at all.

Conservative members of Congress have long pretended to care about small businesses—at least, insofar as it helps advance their broader antigovernment campaign …

Oct. 23, 2013 by Matt Shudtz
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SBA’s Office of Advocacy has added its voice to the chorus of business interests who want OSHA to delay publication of a new rule that would protect workers from the deadly effects of silica exposure. In a letter to OSHA chief David Michaels, the top lawyers from the Office of Advocacy claim that it will be “nearly impossible” for small business representatives to review OSHA’s proposal and prepare the comments and testimony due in early December.

To be sure, the rulemaking docket is voluminous and the issues are complex. But the bottom line is that each day of delay in publishing the new rule means another day when millions of workers will be exposed to elevated levels of a deadly dust. By OSHA’s estimates, hundreds of workers die each year from silica exposures that are perfectly legal under current standards; thousands of other workers …

Oct. 1, 2013 by Sidney Shapiro
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Call it buyer’s remorse. The Office of Advocacy of the Small Business Administration (SBA) is publicly—albeit meekly—tiptoeing away from a now-infamous report that it commissioned, in which economists Nicole Crain and Mark Crain purported to find that federal regulations cost the economy $1.75 trillion in 2008. After being roundly criticized by CPR, the Congressional Research Service, and others, SBA’s Office of Advocacy now explains, referring apparently to the $1.75 trillion figure that “the findings of the study have been taken out of context and certain theoretical estimates of costs have been presented publicly as verifiable facts.” While this admission is welcome, it does not go nearly far enough in light of the antiregulatory crusade this misleading, taxpayer-supported report fueled.

Soon after the Crain and Crain report was released in 2010, CPR published a White Paper that demonstrated the unreliability and implausibility …

July 19, 2013 by Daniel Farber
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When you say “small business,” most people probably imagine a mom-and-pop corner grocery.  Actually, the federal Small Business Administration’s concept of small goes well beyond that.  For instance, it includes a computer business that does up to $25 million per year in business. A convenience store can do $27 million and still be considered “small,” while a grocery store can go up to $30 million. If you’re in parts of the financial sector, you can do $175 million in business a year and still be a “small business.”

In many other areas, the size requirement is set in terms of numbers of employees—usually 500, but sometimes 1000 or more.  There are wonderfully detailed sub-categories such as “Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing” and the nostalgia-inducing “Carbon Paper and Inked Ribbon Manufacturing.”  (Couldn’t find a heading for buggy-whip manufacturers, however.)  Anyway …

March 14, 2013 by Matthew Freeman
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This morning, CPR President Rena Steinzor testifies before the House Committee on Small Business's Subcommittee on Investigations, Oversight and Regulations. From the witness list, it would appear that this'll be another in a series of hearings structured by House Republicans to inveigh against the regulations that protect Americans from a variety of hazards in the air we breathe, water we drink, places we work, products we buy, food we eat, and more.

If history is any guide, most of the testimony and discussion will focus not on how best to protect Americans from such problems, but on the costs to small business of doing so. Steinzor is the lone witness permitted to the minority party -- the Democrats, that is -- and as such, could well be the only person who mentions the benefits of regulation. Study after study has demonstrated that the economic benefits of regulation vastly exceed …

Feb. 15, 2013 by James Goodwin
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Earlier this week, Karen Mills, the current Administrator of the Small Business Administration (SBA), announced her intention to leave office, opening up another second-term vacancy for President Obama to fill in the coming months.  The SBA position is unlikely to attract as much media attention or pundit speculation as the EPA or Energy Interior posts, but it could have a big impact on whether the Obama Administration is able to take on the long to-do list of public health, safety, and environmental challenges that the nation currently faces.  The next SBA Administrator can and should begin the critical process of reshaping the controversial SBA Office of Advocacy so that it focuses on helping truly small businesses, without undermining regulatory safeguards.

A recent CPR white paper I co-authored examined how the Office of Advocacy uses federal tax dollars to try to block health, safety, and environmental regulations, often …

Jan. 29, 2013 by Sidney Shapiro
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Congress created the Office of Advocacy (Office) of the Small Business Administration (SBA) to represent the interests of small business before regulatory agencies.   It recognized that, unlike larger firms, many, if not most, small businesses can’t afford to lobby regulators and file rulemaking comments because of the expense involved.  The Office was supposed to fill this gap by ensuring that agencies account for the unique concerns of small businesses when developing new regulations.  Instead, as new reports from the Center for Progressive Reform and the Center for Effective Government document, the Office of Advocacy is using its resources and influence to weaken the regulatory process, usually at the behest of big business.

The Office of Advocacy has steadily expanded its role in the rulemaking process, creating numerous opportunities to oppose regulation, slow the regulatory process, and dilute the protection of people and the environment against unreasonable …

Aug. 27, 2012 by Ben Somberg
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A draft of the Republican party platform, posted by Politico on Friday afternoon, reveals that the party has incorporated some of the more absurd claims and proposals on regulations pushed by House Republicans and some more radical trade organizations. 

The draft claims regulations cost $1.75 trillion each year – that’s from a discredited study sponsored by the Small Business Administration’s Office of Advocacy. It turned out that 70 percent of that figure came from a regression analysis based on opinion polling on perceived regulatory climate in different countries (and much of the rest of the number came from cherry-picking the highest available estimates). The SBA study was debunked by a CPR white paper, the non-partisan Congressional Research Service, and the Economic Policy Institute (twice).

The draft platform says: “Constructive regulation should be a helpful guide, not a punitive threat.” In other words, we suggest that …

April 30, 2012 by Matthew Freeman
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Last week, Bloomberg News ran a curious story conflating a range of issues under the banner of regulatory rollbacks. The piece keys off of the ongoing GOP push to deregulate America. That effort has been going on for decades, of course, but in the wake of the recession (made possible, not coincidentally, by deregulation in the economic sector), GOP leaders and their business allies and funders have rebranded it, and now argue that that "burdensome" economic, health, safety and environmental regulations are in fact the cause of economic distress.

Most of the GOP rhetoric has been aimed at federal regulation. But the Bloomberg piece breaks some new ground, sweeping together a hodgepodge of state regulations and laws, overlaying it with an uncritical reference to some shoddy right-wing research, and presenting the resulting brew as the state and local expression of the GOP's anti-regulatory campaign.

In the first …

CPR HOMEPAGE
More on CPR's Work & Scholars.
July 5, 2018

Borrowing from CPR Playbook, Small Business Administration Brings New 'Win-Win' Approach to Regulations

Jan. 22, 2015

The Anti-Regulatory Crowd's Small Business Rhetoric Is a Scam

Oct. 23, 2013

SBA's Office of Advocacy wants even more time to review OSHA's silica proposal

Oct. 1, 2013

The SBA's Office of Advocacy Criticism of Its ‘Crain and Crain' Report: A Dollar Short and A Day Late

July 19, 2013

The Strange World of the Small Business Administration

March 14, 2013

Steinzor Testifies this Morning on Benefits of Regulation, Role of SBA's Office of Advocacy

Feb. 15, 2013

Change in Leadership at the SBA Offers Opportunity for Charting a New Course for Controversial Office of Advocacy