Small Business Regulatory Flexibility Improvements Act
Sponsored By: Representative Cline
In Committee
Summary
Expanded protections for small entities are the bill's main goal. It broadens what counts as a rule and forces agencies to weigh both direct and reasonably foreseeable indirect economic effects when making regulations, while boosting the Small Business Administration’s Office of Advocacy.
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- Small businesses, nonprofit small organizations, and tribal organizations gain wider coverage and clearer tests. Nonprofits can qualify as "small" if they meet SBA standards or have net worth up to $7 million and no more than 500 employees. Agencies must analyze indirect effects like compliance costs and lost revenue and must list alternatives that minimize harms or maximize benefits.
- Federal agencies and land managers face stricter review duties and timelines. Agencies must publish a plan within 180 days and review existing and future rules within 10 years, amending or rescinding rules to reduce adverse impacts or increase benefits for small entities.
- The SBA Chief Counsel for Advocacy gets stronger tools and visibility. The bill expands judicial and administrative review rights, requires reports and outreach, creates a first-time paperwork-violation waiver framework with congressional notice, and directs a Comptroller General study on Advocacy capacity.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Broader small-business checks on federal rules
If enacted, agencies would have to count both direct and indirect costs on small entities when writing rules. Some nonprofits with net worth $7,000,000 or less and 500 or fewer employees would count as small, and tribal organizations would be included. Agencies would need to spell out options that reduce harm or boost benefits for small entities in both draft and final analyses. Revisions to federal land management plans would face the same small‑business review. Publication of a final rule would start the clock for court review of these steps.
First-time paperwork fines waived for small businesses
If enacted, agencies would not fine a small business for a first paperwork or recordkeeping slip. This would apply only if there was no similar violation with the same agency in the past 5 years. No waiver would apply for tax or debt collection laws, serious public harm, or if not fixed within 6 months after written notice. For health or safety dangers, agencies could allow 24 hours to fix the issue and avoid a fine. If an agency fines without giving 24 hours in a danger case, it would have to notify Congress within 60 days.
Regular reviews of rules for small businesses
If enacted, each agency would post a plan within 180 days to review rules that hit many small entities. Old covered rules would be reviewed within 10 years; new final rules within 10 years after they are published. Agencies could take one extra 2 years if they notify the SBA’s Chief Counsel and Congress. Agencies would have to reach out to affected small businesses, including women‑, veteran‑, and disadvantaged‑owned firms. Each year, agencies would report which rules they kept, changed, or dropped to reduce harm or increase benefits.
Stronger small-business advocate on size rules
If enacted, the small‑business advocate at SBA would get more say over who counts as a small business. Agency size standards would need that office’s approval, unless the SBA Administrator sets them. The Chief Counsel could set definitions used across laws and could be joined in lawsuits about approved standards.
Plain-language guides for small businesses
If enacted, agencies would write guides in plain language for small businesses. They would ask small businesses or their groups for input. Agencies could make different guides for different groups and work with associations to share them.
Sponsors & CoSponsors
Sponsor
Cline
VA • R
Cosponsors
Hageman
WY • R
Sponsored 1/15/2025
Ellzey
TX • R
Sponsored 1/15/2025
Brecheen
OK • R
Sponsored 1/15/2025
Fitzgerald
WI • R
Sponsored 1/15/2025
Webster (FL)
FL • R
Sponsored 2/21/2025
Van Drew
NJ • R
Sponsored 2/21/2025
Roll Call Votes
No roll call votes available for this bill.
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