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1 [1] (May 5, 2025)

handle is hein.crs/smlbsanoceo0001 and id is 1 raw text is: Congressional Research Service Inforrning the legislative debate since 1914 6EMNMEMMHEE May 5, 2025 Small Business Administration Office of Advocacy Office of Advocacy Origins During the early 1970s, small business trade associations indicated at congressional hearings that they were not satisfied with advocacy efforts at the Small Business Administration (SBA), especially in achieving regulatory relief for small businesses-even though the Small Business Act of 1953 (P.L. 83-163, as amended) had directed the SBA to aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns. Congress then passed legislation (P.L. 93-386, the Small Business Amendments of 1974) that authorized the SBA Administrator to create an Office of Chief Counsel for Advocacy. Section 10 of P.L. 93-386 assigned the Chief Counsel five duties: 1. serve as a focal point for the receipt of complaints, criticisms, and suggestions concerning the policies and activities of the Administration and any other federal agency that affects small businesses; 2. counsel small businesses on how to resolve questions and problems concerning the relationship of the small business to the federal government; 3. develop proposals for changes in the policies and activities of any agency of the federal government that will better fulfill the purposes of the Small Business Act and communicate such proposals to the appropriate federal agencies; 4. represent the views and interests of small businesses before other federal agencies whose policies and activities may affect small businesses; and 5. enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by the federal government, which are of benefit to small businesses, and information on how small businesses can participate in or make use of such programs and services. The SBA's Office of Chief Counsel for Advocacy (Advocacy) was created in October 1974 and was fully operational by March 1975. An Independent Office within SBA After lobbying by small business organizations for Advocacy to have greater independence from the SBA's Administrator, Congress passed P.L. 94-305 in June 1976. Title II of P.L. 94-305 required Advocacy to be established as a separate, stand-alone office within the SBA and that the Chief Counsel be appointed by the President, with the advice and consent of the Senate. A report accompanying this legislation stated that this position be given a great deal of latitude in its operation and that it not be filled by a person who will become a 'yes' man for the Agency. At that time, Advocacy's budget was provided through the SBA's Salaries and Expenses' Executive Direction account. Years later, through the Small Business Jobs Act of 2010 (P.L. 111-240), Congress enhanced Advocacy's independence by requiring the President to provide a separate statement on the amount of appropriations requested for Advocacy, to be designated in a separate account in the General Fund of the Treasury. Advocacy's Regulatory Oversight Role P.L. 96-354, the Regulatory Flexibility Act of 1980 (RFA, as amended) expanded the role of the Office of Advocacy by charging Advocacy's Chief Counsel with monitoring and reporting agencies' compliance with RFA provisions. The RFA requires federal agencies to assess the economic impact of forthcoming regulations on small entities, including small businesses, small not-for-profit organizations, and small governmental jurisdictions (generally, the government of a city, county, town, school district or special district with a population of less than 50,000). Agencies must also notify Advocacy prior to issuing certain rules, for possible comment by the Chief Counsel. Advocacy's role in RFA implementation is codified at 5 U.S.C. §§601-612. More information on the RFA is available in CRS In Focus IF11900, The Regulatory Flexibility Act: An Overview, by Maeve P. Carey. Advocacy is also responsible for monitoring agency compliance with Executive Order (E.O.) 13272, Proper Consideration of Small Entities in Agency Rulemaking (August 13, 2002). E.O. 13272 requires federal agencies to make information concerning how they will comply with the RFA's statutory mandates publicly available. It also requires federal agencies to send to Advocacy copies of any draft regulations that may have a significant economic impact on a substantial number of small entities. Advocacy is responsible for training agencies in how to comply with the RFA, and produces a periodic publication, A Guidefor Government Agencies: How to Comply with the Regulatory Flexibility Act. In FY2023, Advocacy held nine training sessions for 139 federal officials. Advocacy must report annually on federal agency compliance with the executive order, which is accomplished primarily through Advocacy's annual publication of Report on the Regulatory Flexibility Act. The report includes details on agency rulemaking as well as Advocacy's activities. https://crsreport

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