§603 Initial regulatory flexibility analysis

Summary

Agencies must make a short study about how a proposed rule will affect small entities whenever they publish a general notice of proposed rulemaking or certain IRS interpretative rules that require collecting information. The study must be open for public comment, published in the Federal Register when the notice appears, and sent to the Chief Counsel for Advocacy at the Small Business Administration. The study must say why the agency is acting, the rule’s goals and legal basis, how many small entities it will likely affect (when feasible), the expected reporting, recordkeeping, and other compliance duties and the skills needed, and any federal rules that might overlap or conflict. It must also describe important alternatives that meet the law’s goals but reduce harm to small entities, such as different reporting schedules, simpler or clearer requirements, performance-based standards, or exemptions. For certain covered agencies, the study must also explain any projected increase in small entities’ cost of credit, describe alternatives to limit that increase, and include advice from small-entity representatives chosen with the SBA advocate.