WASHINGTON, D.C. – Small businesses realized $2.6 billion in first-year cost savings and $285 million in annually recurring savings as a result of fiscal year (FY) 2007 efforts to help agencies comply with the Regulatory Flexibility Act (RFA). The law requires agencies to review the economic impacts of proposed regulations on small entities and consider less burdensome alternatives. The figures are reported in the FY 2007 edition of the Office of Advocacy’s annual Report on the Regulatory Flexibility Act.

“Small firms are better equipped to do what they do best—grow the economy—when they are freed from coping with overly burdensome or duplicative regulations,” said Chief Counsel for Advocacy Thomas Sullivan. “Federal agencies are learning that the RFA and Executive Order 13272 are valuable tools to help them consider the impact of their rules while still meeting regulatory goals.”

In FY 2007, the Office of Advocacy completed its initial RFA training of rule writers in all the major regulatory agencies. President Bush mandated the training program in Executive Order 13272, signed in August 2002. The report notes that in FY 2007 the office also reviewed over 469 regulations to assess RFA compliance, convened 29 roundtables to solicit the priorities and comments of small entity stakeholders, and submitted 30 public comment letters to federal agencies on regulatory proposals.

The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.