In a recent hearing before the U.S. House Committee on Small Business, Rob Smith of NFIB’s Small Business Legal Center highlighted the detrimental impact of excessive regulation on small businesses. During his testimony, Smith emphasized how government regulations and red tape can have financial consequences and hinder the growth and success of Main Street businesses.
Smith pointed out that the Regulatory Flexibility Act (RFA) was originally designed to address the disproportionate impact of federal regulations on small businesses. However, he noted that administrative agencies have found ways to circumvent the law’s requirements, exploit loopholes, and conduct flawed cost analyses.
Smith emphasized that each new regulation adds to the existing regulatory requirements, creating a cumulative burden that becomes unsustainable for small business owners. He called on Congress to strengthen the RFA, ensure agency compliance, and provide relief to struggling small businesses. Smith specifically mentioned the Prove It Act of 2024 as a potential solution to address regulatory challenges.
NFIB research has consistently shown that small business owners rank unreasonable government regulations as a top concern. The organization has advocated for measures like the Prove It Act to address regulatory burdens faced by small businesses across the country. Smith’s White Paper on the RFA further explores the importance of regulatory flexibility and how Congress can revitalize the RFA to better support small businesses.
To read Smith’s full testimony and watch the hearing, visit NFIB’s website for more information.
