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The Strange World of the Small Business Administration

When you say “small business,” most people probably imagine a mom-and-pop corner grocery.  Actually, the federal Small Business Administration’s concept of small goes well beyond that.  For instance, it includes a computer business that does up to $25 million per year in business. A convenience store can do $27 million and still be considered “small,” while a grocery store can go up to $30 million. If you’re in parts of the financial sector, you can do $175 million in business a year and still be a “small business.”

In many other areas, the size requirement is set in terms of numbers of employees—usually 500, but sometimes 1000 or more.  There are wonderfully detailed sub-categories such as “Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing” and the nostalgia-inducing “Carbon Paper and Inked Ribbon Manufacturing.”  (Couldn’t find a heading for buggy-whip manufacturers, however.)  Anyway, each and every one of these businesses is, for some mysterious reason, entitled to the special care and solicitude of the U.S. government.

But the Small Business Administration seems remarkably attentive even to firms that exceed even this generous definition of small business. The Office of Advocacy also is willing to go the extra mile for big business groups like the American Chemistry Council.

It no longer seems to focus on the special needs of smaller (or maybe I should say “less large”) businesses. Instead, studies by the Center for Progressive Reform and the Center for Effective Government shown, the SBA now acts as a mouthpiece for the business community as a whole, often echoing the views of Big Business. For instance, it pressured the EPA not to regulate arsenic, fine particles, and lead emissions from coal power plants. It has also opposed regulations of formaldehyde, styrene, and chromium, as well as arguing that EPA should not regulate greenhouse gases (apparently on grounds that the Supreme Court had already rejected in a previous case). It also shows up at meetings flanked by major corporations like ExxonMobil to argue in favor of watering down regulations.

Of course, the business community is entitled to advocate their viewpoints to regulators, and they spend many millions of dollars to do so.  But why should the U.S. government hire people to act as back-up lobbyists for the well-funded efforts of the Chamber of Commerce, major trade associations, and Fortune 500 companies?

Cross-posted from the environmental law and policy blog Legal Planet.

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Daniel Farber | July 19, 2013

The Strange World of the Small Business Administration

When you say “small business,” most people probably imagine a mom-and-pop corner grocery.  Actually, the federal Small Business Administration’s concept of small goes well beyond that.  For instance, it includes a computer business that does up to $25 million per year in business. A convenience store can do $27 million and still be considered “small,” […]

Robert Verchick | July 18, 2013

Senate’s Confirmation of Gina McCarthy as Head of EPA a Welcome Development

The Senate’s confirmation of Gina McCarthy as head of the Environmental Protection Agency is a welcome development and a signal that Congress and the President are willing to get serious about the Agency’s role in protecting the health of all Americans and the affects of climate change on the environment. It won’t be easy. Lawmakers […]

William Funk | July 17, 2013

Government Seeks Certiorari on Clean Water Act’s Direct Review Provision in EPA v. Friends of the Everglades

Environmentalists know about the Environmental Protection Agency’s Water Transfer Rule. See 40 CFR § 122.3(i). It states in essence that discharging polluted water from one body of water to another unpolluted body of water is not a discharge of a pollutant under the Clean Water Act. According to the EPA, this action would not be regulated […]

Frank Ackerman | July 17, 2013

As Good as a Stopped Clock: The House does Transparency

One day in May, climate change got a lot more expensive. The price tag on emissions – the value of the damages done by one more ton of CO2 in the air – used to be a mere $25 or so, in today’s dollars, according to an anonymous government task force that met in secret […]

Dave Owen | July 16, 2013

Urban Stormwater Runoff: The Residual Designation Authority Bombshell

Last week brought big news in the water quality world.  On July 10, American Rivers, the Conservation Law Foundation, the Natural Resources Defense Council, and several other environmental groups filed “residual designation authority” petitions for stormwater discharges across EPA Regions 1 (New England), 3 (mid-Atlantic), and 9 (southwestern states and California).  That may sound like an obscure and technical […]

Erin Kesler | July 10, 2013

Statement of CPR President Rena Steinzor on ‘Energy Consumer Relief Act’ Mark-up

This morning, the House Energy and Commerce Subcommittee is expected to advance the “Energy Consumer Relief Act” for consideration. The Act would allow the head of the Department of Energy to veto any rules promulgated by the EPA with estimated “costs” of over $1 billion.  Center for Progressive Reform President Rena Steinzor testified against the […]

James Goodwin | July 9, 2013

By the Numbers: The Costs of New Regulatory Delays Announced in the Spring 2013 Regulatory Agenda

  “April showers bring May flowers.” To that well-known spring-related proverb one might soon add “the Spring Regulatory Agenda brings new groundless complaints from corporate interests and their anti-regulatory allies in Congress about so-called regulatory overreach.” Last Wednesday, the Obama Administration issued the 2013 edition of the Spring Regulatory Agenda, one of two documents the President must issue […]

James Goodwin | July 3, 2013

Mission Critical: Under New Regulatory Czar Shelanski, OIRA Must Begin to Affirmatively Help Reinvigorate the Regulatory System

Welcome aboard, Administrator Shelanski.  You’re already well into your first week on the job as the head of the White House Office of Information and Regulatory Affairs (OIRA).    You’ve already received plenty of valuable advice—during your confirmation hearing and from the pages of this blog, among other places—on how you can transform OIRA’s role in […]

Thomas McGarity | July 2, 2013

Anything but Generic: Supreme Court Preemption Opinion Calls for Correction from Congress and the FDA

Lost among the high-profile opinions that the Supreme Court issued during the past two weeks was a case that attracted little media attention, but is of great importance to the millions of Americans who take generic drugs. Karen Bartlett, a secretary for an insurance company filed the lawsuit against generic drug manufacturer Mutual Pharmaceutical Company. […]