Small entities — including small businesses, small and local governments and small non- profits — saved $7 billion in first-year costs and $745 million in annual recurring expenses, thanks to the SBA’s Office of Advocacy in its role as enforcer of the Regulatory Flexibility Act (Reg Flex). That’s the big take-away in the Obama Administration’s first annual Reg Flex report to the President from a post-Sullivan Office of Advocacy, pedantically entitled Report on the Regulatory Flexibility Act FY 2009. The Regulatory Flexibility Act, signed into law in 1980, is undoubtedly one of the best bits of small business policy ever to cross any President’s desk. In a nutshell, it requires federal regulating agencies to consider the impacts of their proposed rules on small entities and to consider less costly alternatives that still accomplish the original goals of the rule.

The SBA’s Office of Advocacy is charged with enforcing compliance with Reg Flex and it’s offspring, the Small Business Regulatory Enforcement Fairness Act (SBREFA) and Executive Order 13272. In fiscal 2009, the vast majority of federal departments and independent agencies complied with both Reg Flex and E.O. 13272, with the notable exception of the Federal Communications Commission, which has a history of issues with Reg Flex and E.O. 13272 compliance. Advocacy continues its efforts there. The report tends to focus on compliance with the executive order because, while it is possible to comply with Reg Flex without being in compliance with the executive order, it is not possible to be in compliance with the executive order and still not be in compliance with Reg Flex. Ultimately, Reg Flex compliance is the goal and E.O. 13272 is the map. The end result is less burdensome regulations (and lowered costs) for small businesses.