Small businesses are an integral facet of North Carolina’s growing economy. Unfortunately, our state’s small businesses are disproportionately impacted by compliance burdens associated with regulations. To combat this problem, the NC Chamber joined more than 150 business and manufacturing organizations in expressing support for the Small Business Regulatory Flexibility Improvements Act.
This legislation would minimize the unnecessary burdens placed on small businesses by reforming the current regulatory process. Currently, small businesses with less than 50 employees pay $11,724 per employee each year in regulatory compliance ($34,671 for small manufacturers). This burdensome cost directly correlates to a small business’ ability to operate efficiently, compete in the global economy and create jobs. The Small Business Regulatory Flexibility Improvements Act would address those challenges by modernizing the Regulatory Flexibility Act (RFA), which requires federal agencies to transparently account for the impact of regulation on small businesses. While the RFA has saved small businesses billions of dollars, each agency interprets the statute’s terms differently. This obscurity in execution has opened the door for agencies to avoid the RFA’s requirements, resulting in greater pressure on our small businesses. The Act would make the terms of RFA application uniform, eliminating an agency’s opportunity to circumvent the law.
In letters sent to Senator James Lankford and Representative Steve Chabot, we encouraged Congress to pass this commonsense legislation. As our nation and state look to strengthen our competitiveness, we must also help mitigate the needless regulatory burdens facing our small businesses.