SBA to Bureaucrats: Less Red Tape, Unless We Want It
Published Date: 8/31/2026
Rule
Summary
This final rule rescinds the Administration's policy of engaging in notice and comment rulemaking even where the Administrative Procedure Act does not require notice and comment rulemaking. As a result of this final rule, the Administration will follow the default requirements of the Administrative Procedure Act. The Administration will reserve the right to engage in voluntary notice and comment rulemaking even where not required by the Administrative Procedure Act as a matter of policy on a case by case basis.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
SBA stops automatic notice-and-comment
The SBA rescinded 13 CFR 101.108 and will no longer as a matter of policy apply notice-and-comment procedures where the Administrative Procedure Act (APA) exempts matters relating to public property, loans, grants, benefits, or contracts. This change is effective August 31, 2026, and the SBA says it may still seek public comments voluntarily on a case-by-case basis.
Quantified annual savings of $32,340
The SBA estimates the rescission yields quantified annualized net savings of $32,340 in 2026 dollars: $28,029 in agency staff/overhead savings and $4,311 in public time savings based on assumptions about 33 proposed rules and average hourly values. Those figures are the rule's stated annual cost savings from avoiding some notice-and-comment work.
Fewer guaranteed public comment opportunities
By returning to the APA baseline, the SBA will not automatically solicit public comments for rulemakings that fall under APA exemptions (for example, rules about public property, loans, grants, benefits, or contracts), which reduces guaranteed opportunities for public input. The SBA acknowledges there may be disbenefits from avoiding comment periods but says those disbenefits are expected to be minor.
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Key Dates
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