Regulations And More Regulations - What Are They Thinking?

On Wednesday, July 21st President Obama is expected to sign into law the historic reforms included in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, reforms designed to prevent the financial disaster that happened nearly two years ago. Included in the legislation was the Small Business Fairness and Regulatory Transparency Amendment, S. Amdt. 3883.  Early on, WIPP voiced its support for this amendment, and was instrumental in ensuring that it was included in the final bill.

This amendment requires that the Consumer Financial Protection Bureau (CFPB) consult with the Small Business Advocacy Review Panel prior to the publication of any proposed rules.  In addition, recommendations from the Small Business Advocacy Review Panel should be included in any published regulatory proposal.

Whatever your opinion of the bill (for or against, too little too late, too much government intrusion into the private sector, the best overhaul since the days of the New Deal, etc.), WIPP was present and accounted for, weighed in on behalf of the small business community, and as a result we announce yet another victory on behalf of our membership.   Rules that are put forward must fully consider the repercussions they will have on small businesses.

Women business owners -- over 7 million strong according to the latest Census Bureau Survey -- are the strength of our nation's economy.   They are expected to create 1/3 of net new jobs in the economy, and are 13 to 14 times more innovative per employee than larger firms.

Yet despite their importance to the economy, small businesses are heavily burdened by the costs of government regulation and excessive paperwork. SBA's Office of Advocacy reports that per year, firms with fewer than 20 employees spend 45 percent more per employee than larger firms do to comply with federal regulations.

As a normal part of its process, WIPP reviews rules and regulations put forward once a bill becomes law in order to reduce the burdens that federal policies impose on us.  You may recall that this is exactly the situation we are engaged in currently with the proposed rules put forward for the Women's Procurement Program (also known as the 8(m) program).  

And if you want a second example - read "WIPP Works in Washington", which updates you on an IRS reporting requirement instituted by Congress in 2001 that requires all businesses to submit 1099 forms for any service that exceeds $600.  This year, tucked away in the health care overhaul, Congress expanded the reporting requirement to include goods and services purchased over $600.   This new requirement goes into effect in 2012.   What are they thinking?  Needless to say - we are hard at work on this and many other issues.

These are just two examples of WIPP's work.  Not too much glitz and precious little glamour. No pretty pictures at the podium with legislators - but instead hard, focused, behind-the-scenes work to make sure we have policies that support, not inhibit, small business growth and development.  

Congratulations to all of you who have supported our efforts, and have enabled us to speak with one voice on Capitol Hill. An organization as large as ours, with more than half a million members and fifty supporting associations, is bound to have differences of opinion. But by sticking to our message and mission on behalf of small business, we are a credible organization recognized as a reliable spokesperson for our constituency.